Paper 360
JORI RINGMAN, DIRECTOR GENERAL, CEPI
Resource efficiency has long been in the paper industry’s DNA. Companies seek to use each fraction of material from a tree, all the way from fibers to lignin. In the paper industry, resource efficiency manifests itself both in operational efficiency, through sparse water and energy usage, as well as material efficiency, i.e., using different parts of a tree for the greatest value.
DIGITALIZATION AIDS RESOURCE EFFICIENCY
The digitalization of the paper industry can help not only in resource efficiency, but also in training future industry experts, resolving skill shortages, and creating a competitive edge in global markets. For instance, the paper and packaging company Mondi uses a digital twin of its mill to achieve operational transparency, support lean projects, and anticipate operational anomalies that can cause faulty products. Mondi’s data-driven process optimization relies on so-called “soft sensors”—virtual sensors in the form of machine learning models that enable continuous prediction—for quality control. This leads to increased efficiency, optimized use of resources, and reduced waste. At the same time, the agility and mobility of production information signifies a new workforce status quo.
Integrating the data from the paper industry with further data brings additional benefits. Mayr-Melnhof Karton, a producer of coated recycled cartonboard, has used real-time energy price data to shift energy-intensive process steps to a time of low electricity costs. The company was recognized by the 2020 Pulp and Paper Industry Awards in the category of IoT and Digitalization for its advanced digital and sales service channel. In Mayr-Melnhof’s solution, customers can carry out all the steps, from the selection of cardboard quality to production preview and booking. This further improves the performance of a sector traditionally working with tailor-made, near net shape delivery, while also minimizing waste downstream.
MERGING DIGITAL AND PHYSICAL FLOWS
Digital expertise and systems can further strengthen the paper industry. The synergy between the paper industry and digital service providers in Europe is strong, marked by highly innovative collaboration. The physical and digital industries in Europe are also very much interlinked: by solving the digitalization challenges presented by the paper industry, IoT and software developers can improve their offerings. While both technology providers and manufacturing in the sector are global leaders, it creates a fertile ecosystem for digital start-ups and services that would otherwise be based in Silicon Valley or Asia.
This integration of industries is illustrated by the Forest Business Accelerator, where the pulp and paper company SCA collaborates with IBM to create new innovations in the field through cross-linked digitalization and entrepreneurship.
The way forward
In the pulp and paper industry, new digital technologies such as IoT, Big Data, artificial intelligence, virtual reality, and blockchain further improve resource efficiency on all levels of the value chain. This means efficiency both upstream in the supply of raw material, logistics, and production as well as downstream in converting, distribution, and end use. Processes get smarter and more resource-efficient through integrated supply chain data, enabling improved delivery accuracy and optimized stock levels.
Digital systems that inform consumers on recycling and finding reprocessing facilities with the shortest distance from the generated waste help release materials faster back to production. Paper and board fibers already rotate at an average of 3.6 times a year, producing literally “more with less.” Yet yielding much more value from the existing stock of products and materials is possible, as paper can be recycled up to 27 times before losing its properties. Digital trading, or even load swapping, can shorten the time from consumer back to production.
Resource efficiency has long been in the paper industry’s DNA. Companies seek to use each fraction of material from a tree, all the way from fibers to lignin. In the paper industry, resource efficiency manifests itself both in operational efficiency, through sparse water and energy usage, as well as material efficiency, i.e., using different parts of a tree for the greatest value.
DIGITALIZATION AIDS RESOURCE EFFICIENCY
The digitalization of the paper industry can help not only in resource efficiency, but also in training future industry experts, resolving skill shortages, and creating a competitive edge in global markets. For instance, the paper and packaging company Mondi uses a digital twin of its mill to achieve operational transparency, support lean projects, and anticipate operational anomalies that can cause faulty products. Mondi’s data-driven process optimization relies on so-called “soft sensors”—virtual sensors in the form of machine learning models that enable continuous prediction—for quality control. This leads to increased efficiency, optimized use of resources, and reduced waste. At the same time, the agility and mobility of production information signifies a new workforce status quo.
Integrating the data from the paper industry with further data brings additional benefits. Mayr-Melnhof Karton, a producer of coated recycled cartonboard, has used real-time energy price data to shift energy-intensive process steps to a time of low electricity costs. The company was recognized by the 2020 Pulp and Paper Industry Awards in the category of IoT and Digitalization for its advanced digital and sales service channel. In Mayr-Melnhof’s solution, customers can carry out all the steps, from the selection of cardboard quality to production preview and booking. This further improves the performance of a sector traditionally working with tailor-made, near net shape delivery, while also minimizing waste downstream.
MERGING DIGITAL AND PHYSICAL FLOWS
Digital expertise and systems can further strengthen the paper industry. The synergy between the paper industry and digital service providers in Europe is strong, marked by highly innovative collaboration. The physical and digital industries in Europe are also very much interlinked: by solving the digitalization challenges presented by the paper industry, IoT and software developers can improve their offerings. While both technology providers and manufacturing in the sector are global leaders, it creates a fertile ecosystem for digital start-ups and services that would otherwise be based in Silicon Valley or Asia.
This integration of industries is illustrated by the Forest Business Accelerator, where the pulp and paper company SCA collaborates with IBM to create new innovations in the field through cross-linked digitalization and entrepreneurship.
The way forward
In the pulp and paper industry, new digital technologies such as IoT, Big Data, artificial intelligence, virtual reality, and blockchain further improve resource efficiency on all levels of the value chain. This means efficiency both upstream in the supply of raw material, logistics, and production as well as downstream in converting, distribution, and end use. Processes get smarter and more resource-efficient through integrated supply chain data, enabling improved delivery accuracy and optimized stock levels.
Digital systems that inform consumers on recycling and finding reprocessing facilities with the shortest distance from the generated waste help release materials faster back to production. Paper and board fibers already rotate at an average of 3.6 times a year, producing literally “more with less.” Yet yielding much more value from the existing stock of products and materials is possible, as paper can be recycled up to 27 times before losing its properties. Digital trading, or even load swapping, can shorten the time from consumer back to production.