Question: Can you describe the KaiCell Fibers overall product-strategic concept?

Answer: KaiCell's product-strategic consept is made up of three distinct parts.

1) A state-of-the-art chemical pulping line.

2) Arbron(™), a bio-products unit producing a major volume novel fibre that will help resolve serious environmental problems in the textile industry.

3) An innovation driven bioecosystem entity, where multiple players can derive benefits from the by-products of the two above plants.

Question: Will KaiCell Fibers sell market pulp?

Answer: Production not converted by the downstream partners will be sold on the international pulp market.  However, the partners have first choice.

Question: What is Arbron™?

Answer: Arbron™ is a method, material and a product. Arbron Oy Ltd has been registered brand name.

Question: KaiCell Fibers have publicly announced cooperation with the Chinese CHTC group. What will be CHTC's role in KCF?

Answer: KCF and CHTC group have signed preliminary collaboration agreement regarding the development of Arbron™. Both parties share the objective of bringing Arbron into commercial production, as this would solve significant detrimental aspects of viscose production.

Question: What is the production capacity?

Answer: The capacity is 450 000 tonnes of pulp production, and part of the production is processed further as market pulp.

Question: How will KaiCell Fibers secure the required wood supply?

Answer: KaiCell's wood procurement is built around the concept of Local Fibre, based on sustainable use of local wood sources. Local Fiber minimises the costs and risks arising from logistics, emissions and traffic. The mill will mainly use pulp wood from young and mid-aged commercial forests, especially from the thinnings required to ensure healthy growth. Today only about 50% of the region's annual forest growth is harvested*, which reduces growth and deprives the local economy of income. The Local Fibre projects also aims to optimise value creation of local fibre wood from stumpage to mill gate, providing a win-win situation for forest owners and buyer. (*Reference: LUKE, Natural Resources Institute Finland)

Question: Does KCF promote sustainable forestry?

Answer: The KCF venture relies on Local Fibre wood sourcing, which means transporting all the wood needed on average inside a 100 km radius. This reduces the mill's carbon footprint by minimising haulage. Traffic is of course a major contributor to CO2 emissions.

The mill will use a total of 2,5 Mm3 fibre wood and woodchips per year. The annual forest growth in the Kainuu region amounts to 6,9 Mm3. Harvesting in recent years has been only around 3,2 Mm3, which is less than half the annual growth.

A quarter of Kainuu's forests are excluded from commercial use. Almost 90% are certified. KCF is fully committed to promoting sustainable forestry.

Question: What is the KaiCell Fibers Master Plan?

Answer: The aim is to make investment decision at the end of 2018 followed by construction phase. Production would begin in 2021.

Question: Why is the Paltamo mill site such an odd shape?

Answer: Mill site design will take into account the hole entity and different kind of needs. Desing and layout combines basic products, further products, bioproducts and all their needs. There will be new generation bioecosystem in the mill site area.

Question: What will be the environmental effects of the Paltamo biorefinery?

Answer: The mill's environmental impact will be studied in the regulated EIA process. The biorefinery's base product is chemical pulp, of which some parts are further processed into Arbron™, others into bio-composites. The remaining pulp will be sold as market pulp.

Question: From where does the factory take fresh water?

Answer: The fresh water will be taken from the lake Oulujärvi.

Question: Where will the mill's treated effluents end up?

Answer: The refined effluents will be derived to the lake Oulujärvi. The technology will be based on BAT-principles (BAT = Best Available Technology).

Question: What kind of benefits will the KaiCell Fibers mill bring to the region?

Answer: Economic benefit to the region will be close to 200 M€/a and the mill will directly employ about 220 people and indirectly over 1 000 people. The investment magnitude is about 900 M€ and projeced turnover over 350 M€/a in full year.

Question: Will KaiCell Fibers participate in the financing of downstream converting plants?

Answer: Several finance models are possible, but primarily KaiCell Fibers will seek to assist the selected partner(s) through introductions.

Question: Are ownership shares in KaiCell Fibers available to downstream partners?

Answer:  Under the right conditions, various cross-ownership models are desirable.  Even a full acquisition of KaiCell by a party able to complete the project is thinkable.

Question: Are there downstream partners already committed to the project?

Answer:  Due to NDAs, details cannot be made public at this stage, but we are still actively looking for partners.