Valmet to supply a biomass-fired boiler plant to Segezha Pulp and Paper Mill in Russia

Valmet Oyj's press release on July 4, 2016 at 11:00 a.m. EET

Valmet will deliver a biomass-fired boiler plant and related automation and environmental systems to Segezha Pulp and Paper Mill (Segezha PPM) in the Republic of Karelia, Russia. The boiler will produce steam for the mill's production processes and enables the mill to use wood residues and sludge as fuel and thus reduce the use of heavy fuel oil and lower its emissions and environmental impact. Valmet's delivery is scheduled for 2017.

The order is included in Valmet's second quarter 2016 orders received. The value of the order is not disclosed.

"We selected Valmet's multi-fuel boiler after comparing a number of supplier offers. We took into account the reliability of the equipment and its operation, and the price/quality ratio. The decisive criteria that determined our decision were the technological factors and successful boiler references in numbers of industry enterprises. We see that a modern multi-fuel boiler can efficiently burn waste from wood processing with high and variable humidity, as well as sludge from our effluent treatment," comments Sergei Pondar, Vice President of Production for Segezha Group.

The new order strengthens Valmet's position as the leading supplier of bubbling fluidized bed (BFB) boilers with electrostatic precipitator based flue gas cleaning on the Russian market. This is the third boiler delivery featuring Valmet's bubbling fluidized bed (BFB) technology to Russia in the past three years.

"Over decades Valmet has delivered numerous biomass-fired boilers as well as chemical recovery boilers to Russia. We have an established supplier network in Russia and significant part of the delivery for Segezha will be manufactured in Russia. We look forward to delivering our competitive technology to Russia's market also in the future," remarks Nikolay Doroshenko, Director of Energy Sales and Services Operations, Russia and CIS, Valmet.

Technical information about Valmet's delivery

Valmet's delivery includes a 90 MW HYBEX boiler utilizing BFB combustion technology, Valmet electrostatic precipitator based flue gas cleaning equipment, electrification and a Valmet DNA automation system to control and operate the plant.

The HYBEX boiler developed by Valmet features wide fuel flexibility, high combustion efficiency, high reliability, excellent controllability and low emissions. Its main advantage is the possibility to use fuels with high moisture content and a low thermal value.

Information about the customer Segezha Pulp and Paper Mill

Segezha Pulp and Paper Mill is part of Segezha Group, a vertically integrated international forest industry holding company that comprises Russian and European enterprises in the forest, wood processing and pulp and paper industries as well as paper packaging manufacturing enterprises. Segezha Group has assets in 13 countries and employs around 13,000 people.

Corporate Communications

For further information, please contact:

Kai Mäenpää, Vice President, EMEA Energy Sales & Services, Valmet, tel. +358 10 676 2410

Nikolay Doroshenko, Director, Russia and CIS, Energy Sales and Services Operations, Valmet, tel. +7 985 222 34 74

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2015 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

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