A paper machine by Voith Paper. Courtesy of same.

The island of Hainan in South China Sea has largely lived off tourism and its rich natural resources. Today, however, Hainan is witnessing some of China’s industrial boom. Hainan Jinhai Pulp & Paper Industry Co. Ltd., a subsidiary of Indonesian Asia Pulp & Paper, operates the world’s largest pulp mill on the island and is in the process of building another leading industry facility: Hainan PM2 will be the largest machine for fine paper production in the world. The paper machine, supplied by Voith Paper of Heidenheim, Germany, is a comprehensive operation from stock preparation to finishing, spanning 670 meters in length. It will have capacity for one million metric tons per year once in production from May 2009.

A paper machine is built with large amounts of stainless steel, necessitated by wet and high-chloride process conditions. A machine of the size of Hainan PM2 takes approximately 2,000 tons of stainless in flat products, tubes and fittings.

Voith Paper is a world leading technology supplier for the pulp and paper industry. The company reports that more than every third sheet of paper consumed in the world is produced by a Voith paper machine. To source stainless steel, Voith has for long partnered with Outokumpu, relying on the full range of Outokumpu products including custom-sized shells for suction rolls, the single most expensive components in paper machines.

The Voith key account manager at Outokumpu, Peter Meuter, describes the Voith-Outokumpu relationship as a close partnership. Petra Copparini, a Voith procurement representative, says that the process with Outokumpu has been good, adding that Outokumpu’s high product quality and reliability bring added value to the relationship.

Hainan PM2 has offered the partners an opportunity to test a new form of cooperation: Voith has trusted the entire supply of flat products, tubes and fittings to Outokumpu. Such a comprehensive package is the first in the history of the partnership. Thanks to the arrangement, Voith has gained considerably by simplifying their stainless procurement task for the project, avoiding to source small packages from a large number of different suppliers.

The Hainan PM2 project points to new trends in business: as Voith moves out to emerging markets, the company seeks global suppliers who can support and follow them. Outokumpu’s recently redefined Group outlook in customer relations, to operate as “one company” from the customer point of view, facilitates Voith’s expansion and deepens the two companies’ cooperation at the same time. The Hainan PM2 project has been served by eight different Outokumpu units. In the future, Voith – like other Outokumpu customers – will have one point of contact at Outokumpu. This contact will be a concentrated source for the Outokumpu knowledge and capabilities, able to provide optimized service. Mr. Meuter singles out grade optimization as one of the special ways to serve Voith, who will reap many benefits such as cost reduction thanks to alternative grades available from Outokumpu.

Project
Hainan PM2 fine-paper machine, on the island of Hainan, Hainan Province, China, scheduled to go into production in May 2009

Owner
Hainan Jinhai Pulp & Paper Industry Co. Ltd., a subsidiary of Asia Pulp & Paper of Indonesia

Supplier
Voith Paper of Germany, a Voith Group division

Stailess steel materials from Outokumpu
A comprehensive package of approximately 2,000 tons of flat products, tubes and fittings, in grades 1.4401 (316) and 1.4571 (316Ti), with small amounts in 1.4301 (304)

Contact:
Peter Meuter
Outokumpu GmbH, Willich, Germany
Tel. +49 2154 496 221
Email: peter.meuter(at)outokumpu.com