Share Price EUR 52,00 14:25 GMT 07.01.2009

Environment

The business activities of the Mayr-Melnhof Group have always been based on the principles applicable to a comprehensive protection of the environment. Attractive cartonboard and folding carton products are manufactured primarily from renewable raw materials in environmentally friendly processes. They can be recycled to a large extent. With the consistent use of the best technology available for the production process, we make sure that our products succeed in convincing customers, both on account of their highest-possible efficiency in production and their maximum environmental compatibility and safety.

As we focus on the manufacturing and processing of cartonboard, our production processes and products are continuously further improved in line with challenging efficiency targets in order to meet market and ecological demands. However, measures to protect the environment are not only restricted to production, but also comprise the upstream and downstream phases in the supply chain such as procurement and logistics. By using ongoing group-wide benchmarking processes among our plants, we make sure that potentials at all locations can be used on a regular basis.

As a result of their continuous optimizations, the Mayr-Melnhof cartonboard mills have recorded top results for a long time in European industrial comparisons concerning the values obtained for a large number of specific consumption and emission values that are of relevance to the environment. Further improvements will therefore often be possible only in marginal areas, or require technological innovations.

Today, the ongoing improvements concerning environmental compatibility relate primarily to optimizing the raw-material and energy consumption. This process is, in fact, supported by environmental management systems in a growing number of locations.

At present, environmental management systems according to ISO 14000 have been implemented by about 50 % of the cartonboard mills as well as by 4 packaging plants. Improvements of the operational quality system are implemented throughout the Group as a result of audits according to ISO 9000. In addition, all cartonboard and folding carton plants producing for the food industry have implemented hygiene management systems according to HACCP and/or BRC/IoP standards and thus meet the high product standards of this sensitive area.

Regular re-certifications document the ongoing optimization process on a high level and create the required transparency.

The plants located in the EU were allocated carbon dioxide emission certificates for the use of fossil energy. As in the past, there were no shortfalls in the Group as at December 31, 2007.

In 2007, special attention was also given to the practical operational implementation of the European regulations on REACH (safe use of chemicals) and traceability (traceability of raw materials). Information about these measures was also provided at specific customer seminars.

Environmental Protection in the Year 2007

 

MM KARTON

In 2007, the operational environmental management clearly focused on the topics relating to energy savings. Further optimizations were achieved especially in the fields of water, chemicals and product quality.

Energy

“e.fficiency”, the division-wide initiative to reduce the consumption of specific energy, served to identify the savings potentials of all cartonboard plants that can be realized with today’s state of the art. These were integrated into about 400 individual projects. Priority was given to tackling projects that can be implemented immediately. Due to large order volumes, optimizing measures that required machine standstills were only implemented at the end of the year. The implemented measures related especially to process optimizations, heat recovery, as well as improvements of the circuitry and the steam and/or condensate systems.

Chemicals

Targeted optimizing of formulations helped once again to save both costs and resources.Training activities and investments concerning the storage of chemicals contributed towards further raising the safety standards.

Certification

Our virgin-fiber cartonboard mills at Baiersbronn (Germany) and Eerbeek (Netherlands) obtained certification according to FSC (Forest Stewardship Council) and PEFC (Programm for the Endoresement of Forest Certification Schemes).

CO2

The cartonboard mill at Frohnleiten was awarded the “klima:aktiv” certificate of the Austrian Ministry of Agriculture, Forestry, Water Management and Environmental Protection for shifting its intra-plant goods transport from road to rail and thus reducing its CO2 emissions.

MM PACKAGING

Improvements in the production of folding cartons were once again achieved mainly by measures to increase the efficiency of production and materials. In close cooperation with customers, decisive optimizations in the supply chain, especially in logistics, were achieved in a large number of individual projects. Moreover, we also succeeded in achieving major progress in matters of relevance to the environment by adapting the most recently acquired or newly built plants to Group-wide standards.

Detailed information regarding environmental protection is provided in the environmental statements of Frohnleiten, Hirschwang, Deisswil and Eerbeek and can be obtained via e-mail from investor.relations@mm-karton.com or by calling +43/ 1 50136 91180.

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