Tipco Final

TRUST INTERNATIONAL PAPER CORPORATION (TIPCO) Mabalacat, Pampanga January 20, 2015 I. INTRODUCTION

A. VISSION TIPCO is a world-class manufacturer of paper products that meet international quality standards and satisfy customers' specifications, by utilizing 100% recycled raw materials, employing competent and efficient workforce and adopting cost-effective, safe and environment-friendly operating processes. B. MISSION Our primary purpose is to produce quality paper products that meet stringent customers' requirements. To this end, shareholders, management and employees are committed to: Operate efficiently and profitably, continuously seeking ways to improve the quality of work processes and cost-competitiveness of our products; Deliver the products to customers on time, with consistent quality and within stated specifications; Provide a safe, clean and wholesome workplace that is conducive to productivity and the continuous growth and development of its people; Deal with our business partners with integrity, transparency and fairness; Uphold our corporate responsibility to the environment and the communities in which we operate.

1 | Page

OUR PEOPLE TIPCO takes pride in its highly driven and dedicated people. Considered to be among the best in their fields of expertise, TIPCO employees enjoy access to development and welfare programs designed to give them the competitive edge over their counterparts here and abroad.

The company demonstrates its commitment to people by investing heavily on behavioral, quality, safety and technical trainings and by promoting a conducive work environment through its full compliance to safety regulations and other relevant programs. C. COMPANY PROFILE Trust International Paper Corporation (TIPCO) is a major player in the paper manufacturing industry in the Philippines. A multi-billion peso company, TIPCO is equipped with technologically advanced paper machines, de-inking plants and environmental management facilities. Our newsprint and brown paper products are of standard quality designed to meet the stringent demands of our printing and publishing clients. TIPCO is TRUST INTERNATIONAL PAPER CORPORATION. Its name is the embodiment of the ideals and working philosophy guiding the Company's business conduct. The name reflects the foundation on which the working relationship between the Company and those it is dealing with is built - TRUST. The TIPCO mill is located in a 37-hectare lot at the TECO Industrial park in Bundagul, Mabalacat, Pampanga. TIPCO started the construction and installation of the

2 | Page

first paper machine (PM1) in July 1987 and formally inaugurated the mill site and PM1 on December 13, 1988. Full commercial operations began in August 1989. In 1993, the Company constructed a second paper machine (PM2) purchased from Quebec Canada and built with the capacity of 350 metric tons per day. Full commercial operations of PM2 started in May 1995.

In 1995, with the vision of achieving global competitiveness, TIPCO ventured into a third paper machine (PM3) acquiring a J-Former machine from Avenor, Canada with a capacity to 350 metric tons per day. The J-Former, a twin-wire paper machine, was the first of its kind installed in the country. Compared to the usual less efficient conventional fourdrinier type, the machine has advanced J-formation and sheet stability, the qualities required for copy paper, 4-color printing and high-speed printing. PM3 was officially declared on commercial operations in January 1998. From its simple beginnings as a producer of newsprint paper, TIPCO now also produces brown paper to meet the packaging needs of its clients.

3 | Page

II. MANUFACTURING PROCESS

TIPCO uses 100% recycled paper to manufacture high quality paper.

A. RAW MATERIALS All the raw materials being utilized in TIPCO are used and recycled materials. These recycled materials are usually old newspapers, cartons, and the like. Recycled papers upon delivery are sorted manually and mechanically to separate the light-colored paper from the darkcolored paper and to remove other components in the paper such as adhesives, staple wires, and others. Dark-colored paper such as those used for some books, notebooks, notepads and paper bags are derived from locally sourced raw materials like cartons. Whereas, light-colored papers are made out of imported recycled paper commonly from Australia and Singapore.

Raw Materials Warehouse Department processes imported and locally sourced recovered paper by sorting, conveying them into pulpers and converting them into fibrous, cellulose mass. The Deinking Plant takes over to clean, screen, de-ink and wash out all contaminants from the paper stock. At this stage, production process aims to come up with the cleanest and best consistency stock. The Paper Machine Department converts cleaned pulp into finished sheets through forming, pressing, drying, calendering and winding processes. The end result is high quality finished paper that is prepared for wrapping and shipping out to customers. 4 | Page

The Logistics Department handles all finished goods for careful piling, storage and loading into trucks for delivery to local and offshore clients. In all stages of the production process, TIPCO employees are committed to ensuring that only high grade, top quality paper products reach the customers on time.

B. PROCESS 1. Sorting of Raw Materials The Raw Materials Department processes imported and locally sourced recovered paper by sorting a combination of manual separation by workers and mechanical operations using several machines. The raw material will then be conveyed to the pulper and fiberizer where the pulp will be converted into fibrous, cellulose mass.

5 | Page

6 | Page

2. Cleaning of the Pulp Prior to the production of paper using recycled materials, unnecessary components such as inks, adhesives, metallic components (i.e. staple wires) and the like must be removed to avoid damaging the equipment to be used in subsequent processes. To aid in the cleaning processes, a large amount of water is used.

a) High-Density Cleaning This process involves the removal of solid, dense particles in the stock by concept of gravity. b) Hold Screen In this section, metallic components such as staple wires are being removed. c) Flotation After having removed the dense particles and metallic components from our stock, the ink is removed by employing flotation in which air is injected to the stock to form bubbles that will cause the ink to “float” on top of the solution. d) Heavy-Weight Cleaner / Light-Weight Cleaner This section aims to separate the heavy-weight, fibrous, cellulose mass from the light-weight components of the stock such as adhesives and Styrofoam. e) Slot Screen This section is dedicated for removing adhesives which were not recovered from the previous process. With a very fine screen, the excess adhesives can be trapped in this section to finally yield a clean stock ready for further processing. f) Bleaching The stock is bleached to improve the color of the paper to be produced. The stock will stay in the bleaching tower for 1 to 1.5 hours and will be subjected to flotation twice.

3. Refinery Paper Manufacturing begins with the refinery of the pulp. This is a critical phase in paper manufacturing because it is in this phase that the quality of the paper to be produced is determined. The amount of tensile stress is reflective of the strength of the paper that can be produced. With more voids and longer fibers, the tensile stress is low; thus the quality of 7 | Page

the paper that can be produced is low. Whereas, with small voids and shorter fiber length, the tensile stress is high; thus, high-quality papers in terms of strength can be produced. The correct consistency of the fiber and water in the refiner also helps in extending the useful life of the refiners. The correct consistency will be monitored as the stock passes through the head box. Water in the pulp is removed until a 92 – 93% pulp consistency is achieved. Binding agents such as starch is then added to the pulp.\ 4. Paper Manufacturing After cleaning the pulp and achieving the correct consistency, the pulp is sent to the press section composed of a series of dandy rolls to remove moisture while forming the paper. The pulp is then dried using steam in the drying section. To maintain uniform thickness of the paper, the pulp is subjected to calendaring. The produced paper is recovered in a spool as a parent reel in the reeling section. In the winder section, the parent reel is divided into several reels then these smaller reels are packaged in the wrapping section and sent to the warehouse.

C. PROCESS FLOWCHART

8 | Page

9 | Page

10 | P a g e

11 | P a g e

12 | P a g e

D. PRODUCTS AND BY PRODUCTS PRODUCTS AND SERVICES

TIPCO specializes in the production of quality newsprint and printing and writing paper, utilizing 100% recycled paper. It is the only paper manufacturer in the country that exports newsprint and printing and writing paper, principally to the Asian region and occasionally to Africa.

Its newsprint paper comes in varying grammage measurements, mainly 45 and 48.8 grams per square meter. As for the length and width measurements, TIPCO's production technologies allow it to specifically customize the paper rolls according to the customers' required dimensions.

Newsprint Paper

Primary users of TIPCO products can be grouped broadly into two (2) sectors: the publishers and the converters. The first group refers to the clients who publish newspaper 13 | P a g e

broadsheets, tabloids, magazines and books. The second group refers to the firms that further cut and process the paper rolls into products like notebooks, school pads, school workbooks, office bond paper, mimeopaper and the like.

White Paper

14 | P a g e

TIPCO specializes in the production of quality newsprint, printing and writing paper and packaging, utilizing 100% recycled paper. It is the only paper manufacturer in the country that exports newsprint and printing and writing paper, principally to the Asian region. Its newsprint paper comes in varying grammage measurements, mainly 45 and 48.8 grams per square meter. As for the length and width measurements, TIPCO's production technologies allow it to specifically customize the paper rolls according to the customers' required dimensions. Primary users of TIPCO products can be grouped broadly into two (2) sectors: the publishers and the converters. The first group refers to the clients who publish newspaper broadsheets, tabloids, magazines and books. The second group refers to the firms that further cut and process the paper rolls into products like notebooks, school pads, school workbooks, office bond paper. With the growing environmental awareness on the need to reduce or eliminate the use of plastic packaging, TIPCO responded by adding a brown paper packaging line to meet the rising demand for more ecologically safe packaging alternatives. With its close proximity to the market, TIPCO delivers paper rolls promptly, thus reducing unnecessary storage and carrying costs for the customer. With the high quality of TIPCO products, customers are assured of getting the exact specifications following strict standards. TIPCO also provides after-sales service through regular visits of its technical staff to monitor product performance at the customers' production floor and offer suggestions for possible improvements in operating processes or practices.

E. EQUIPMENT TIPCO adopts the latest in paper making technology using the first twin-wire newsprint paper machine in the country.

15 | P a g e

TIPCO's reputation for product excellence is anchored on its goal to continuously increase its production capacity and efficiency through investments not only in the production facility but also in the maintenance facilities. Its Computerized Numeric Control (CNC) Roll Grinder is another first of its kind in the Philippines.

D. PACKAGING

III. QUALITY CONTROL PROCEDURE

To ensure that the paper to be produced are of the highest quality, the cleaning and refining and processing of the pulp is very important. A high-quality paper must possess strength in the sense that it will not tear apart easily, it can hold the things that will be printed on it, it has a uniform thickness, and it is clean and clear of unnecessary marks so that whatever information is to be printed on it can be read and understood by the user. To achieve these, the raw material undergoes several unit operations to remove undesired materials such as inks, adhesives, metallic components and the like. Bleaching is also employed to lighten the paper. The color of the paper is monitored in a control room where samples from every batch are tested to know the exact color combination. Certain customers have specifications in the color of the paper they will buy that is why the color of the paper must pass the standards. The formulation of the shade of paper is also determined to know the optimum brightness, contrast, and the like for the paper. For the strength of the paper, the refinery section is very important. The amount of tensile stress is reflective of the strength of the paper that can be produced. With more voids and longer fibers, the tensile stress is low; thus the quality of the paper that can be produced is low. Whereas, with small voids and shorter fiber length, the tensile stress is high; thus, high-quality papers in terms of strength can be produced. With a clean and high-strength pulp for the paper itself, the process of forming the paper is also crucial. The right amount of pressure in pressing the paper to remove moisture is very important as well as the drying of the paper. Steam is used in drying to regulate the amount of moisture removed. It should be noted that paper still has a minimal moisture content which must not be removed to maintain the quality of the paper. If paper is too dry, it will become too brittle and its strength is low. The distant and position of the dandy rolls and calenders are also very important in assuring that the paper to be produced have uniformity in terms of thickness. Rolls and calenders that are 16 | P a g e

too far from each other will produce thick paper which may be strong but not suitable for general purposes. On the other hand, rolls and calenders which are too close will produce very thin paper. Rolls and calenders usually has adjustable bearings so that the distant between and among them can be modified depending on the thickness of paper desired.

IV. ENVIRONMENTAL AND ENERGY ASPECT

A. WATER TREATMENT Since a paper industry uses a huge amount of water for it cleaning processes, TIPCO produces a large quantity of dirty water which must be treated before release. As part of TIPCO’s Corporate Social Responsibility and Environmental Awareness, the Environment Management Department of the company is in charge of their wastewater treatment facilities which are composed of primary, secondary, and tertiary treatments. After treatment, the company reuses the water in their processes. Their treated water is already safe for release to the fields around their area. TIPCO is ISO 14001 – certified. Guided by a set of core values and a sense of social responsibility, the company has pollution abatement facilities which enable the transformation of process by-products into treated recycled, safe and reusable forms. The ISO 14000 Environment Management Standards exists to help organizations minimize how their operations negatively affect the environment (cause adverse changes to air, water, or land) and comply with applicable laws and regulations. ISO 14001 is the international specification for an environmental management system (EMS). It specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation or programs to meet objectives and targets, checking and corrective action and management review. B. ENERGY SOURCE TIPCO generally utilizes energy from electricity. The company also makes use fuel-driven machineries / equipment. C. WASTE TREATMENT Coming with a large quantity of water being used in the paper industry is also a large amount of solid waste being recovered at the cleaning stage of the pulp. Solid waste in the form of sludge is treated in situ and after treatment, the sludge can be converted into fertilizers that grow plants eaten by pigeons that they are taking care of. 17 | P a g e

TIPCO Management Systems - Making Quality a Way of Life

Quality Management System

Environmental Management System

Health and Safety Management System

1. A globally competitive company with ISO 9001 Certified Quality Management System, TIPCO ensures quality paper and service every step of the way - from the receipt of raw materials to finishing until delivery and after-sales service. TIPCO's ultimate concern is improving paper quality and at the same time providing its customers cost-competitive products. This requires regular sampling and testing of paper products as well as continuous upgrading of systems to ensure all outputs meet the highest standards of quality. 18 | P a g e

2. OUR ENVIRONMENT – CARING AND PROTECTING THE ENVIRONMENT Cognizant of its stewardship role in preserving the country's natural resources, TIPCO uses 100% secondary fiber and state-of-the-art environmental management facilities to ensure compliance to all applicable environmental laws and regulations. Its ISO 14001 Certified Environmental Management System guides all efforts toward the transformation of process by-products into treated, recycled, safe and reusable forms. In recognition of its commendable environment management performance, TIPCO was awarded the Gold Rating by the Environmental Management Bureau of the Philippine Government's Department of Environment and Natural Resources (DENR). Aside from the local recognition of the company’s environmental commitment, TIPCO is also hailed as the first Philippine company found compliant to manufacture products that are FSC and PEFC certified. The certifications from Forest Stewardship Council (FSC) and Program for the Endorsement of Forest Certification (PEFC) assure our clients that our products are environment-friendly and are produced in ways that conserve the Earth’s resources so that future generations can continue to enjoy the bounty of our forests

3. HEALTH AND SAFETY TIPCO considers people as its most valuable assets. As such, the Company upholds the highest standards in occupational health and safety through trainings and implementation of corporate wellness programs designed to promote industrial hygiene, personal safety, observance of safe work procedures and accident prevention. To this day, TIPCO is a 19 | P a g e

proud holder of OHSAS 18001 Certification in Occupational Health and Safety Management System CORPORATE SOCIAL RESPONSIBILITY As a responsible member of the community, TIPCO takes to heart its corporate social responsibility by initiating various programs geared toward preserving the environment and touching base with the people in the neighboring barangays and other localities. Employee volunteers take part in CSR programs such as tree planting, river cleanups, ‘Adopt a River’ drives, nutrition and feeding campaigns, school painting activities, donation drives, medical missions, and livelihood teaching sessions to promote the Company’s goal of strengthening and sustaining partnerships with the local communities.

V. ROLES OF CHEMICAL ENGINEER

Chemical engineers can render their service in the quality control procedures of the company. Modifications or improvement in the processes can be initiated by a chemical engineer working in a paper industry. The wastewater facility and of the company is also a good section where chemical engineers can be employed since the industry makes use of a huge amount of paper in the processes involved in making paper. VI. OBSERVATIONS AND RECOMMENDATIONS

In this industry, upon entering I observed the beauty of surroundings. But as we go further through the seminar room what I saw is that so many papers and dried leaves 20 | P a g e

were littered having dirty surroundings. But it is good also that they provide shelter for their employees. Also, the production is very complicated according to me because there are so many processes to be employed but sooner or later if I decided to work on this industry I may understand the processes. They have also a very kind and approachable engineers and employees who are honestly answering our questions about the process. I also observed that some of their equipment are spare.

.

21 | P a g e