Fortumm Markets
Press release
28.5.2009
Fortum and Sappi Finland agree on extensive long-term energy cooperation
Fortum and Sappi Finland Oy have agreed on extensive portfolio management,
delivery of physical electricity and production balance management. Sappi
Finland is a part of the Sappi Fine Paper Europe group, the leading European
coated fine paper manufacturer. The company has ten production plants in Europe.
Two of these, the Kirkniemi and Kangas mills, are located in Finland. The
long-term agreement between Fortum and Sappi Finland will ensure close
cooperation at least until the end of 2012.
Portfolio management service includes electricity management hedging trades,
risk management and reporting. In addition, Fortum takes care of production
balance management and physical electricity delivery for Sappi Finland's mills.
Sappi's own production covers approximately 600 GWh. The rest of the ca. 1.1 TWh
electricity need, is covered by Fortum's deliveries. The present agreement is,
therefore, also a considerable electricity delivery contract.
“We welcome Fortum Markets as our electricity supply partner convinced by their
extensive experience and energy expertise. As we have already a long standing
and good cooperation with Fortum Heat and Service on the operation and
maintenance of Kirkniemi's power plant, we look forward to extending our
partnership” says Martti Savalainen Director Sappi Kirkniemi mill.
As part of the acquisition of M-real's coated graphic paper business in the
latter half of 2008, Sappi acquired two paper mills in Finland: Kirkniemi mill
in Lohja and Kangas mill in Jyväskylä. The mills produce world class coated
magazine papers for top quality publications under the Galerie brand. Sappi is
now the largest supplier of coated paper in Europe and the world.
“Demand for extensive energy partnership solutions continues to increase in the
manufacturing industry. Our versatile energy expertise allows wide cooperation
with large and small customers alike, whether operating in Finland, Sweden or
Norway - or in them all. It is considerably easier to work with one familiar,
reliable partner than with many operators,” says Risto Paldanius of Fortum
Markets.
Fortum Markets
Communications
Further information:
Martti Savalainen, Sappi Finland Oy, tel. +358 10 464 2475
Risto Paldanius, Fortum Markets, tel. +358 40 501 3669
Sappi is the world's leading producer of coated fine paper used in premium
magazines, catalogues, books and high-end print advertising. SFPE is
headquartered in Brussels, Belgium. Its brands include Magno, HannoArt, Tempo,
Quatro, Royal, Allegro, Cento, Era, Euro, Furioso, Galerie, Mega and Tauro
graphic papers, as well as Algro, Leine and Parade speciality labelling and
packaging papers and boards.
SFPE is a division of Sappi Limited (NYSE, JSE, LSE), a global company
headquartered in Johannesburg, South Africa, with manufacturing operations on
four continents in 9 countries, sales offices in 50 countries, and customers in
over 100 countries around the world. Learn more about Sappi at: www.sappi.com.
Fortum is a leading energy company focusing on the Nordic countries, Russia and
the Baltic Rim area. Activities cover the generation, distribution and sale of
electricity and heat and the operation and maintenance of power plants. Fortum
Markets is a leading electricity retailer, and the number one seller of
eco-labelled electricity in the Nordic Countries. Fortum Markets buys all its
electricity from the Nordic Pool and sells it to household and business
customers and other electricity retailers in Finland, Sweden and Norway. In
addition to actual electricity, Fortum Markets offers its business customers
extensive risk management and portfolio management services.