Sales of the Business Area developed very favorably.  As a result of increased work on the high Order Backlog at the end of 2004, Sales surged to 1,032.9 MEUR, an increase of 16.8% compared to 2004 (884.6 MEUR).

EBITA, however, decreased slightly to 63.9 MEUR (2004: 64.8 MEUR). This decline is mainly due to both the execution of some large orders, which typically have slightly lower margins, as well as competitive pressures and partial project cost-overruns in some of the Business Area’s Divisions.

The Business Area’s Order Intake, at 1,017.0 MEUR, declined by 16.6% compared to the previous year (2004: 1,218.9 MEUR). The main reason for this decline is the very high level achieved last year, which was influenced by the receipt of a large worth over 300 MEUR.

During May, the Veracel greenfield market pulp mill in Brazil started up very successfully and ahead of schedule. Andritz provided the complete fiberline – from digester to finished bales of market pulp – and the white liquor plant. Design capacity for the mill is 900,000 t/a. Included in the delivery is Andritz’s TurboFeed^® chip feeding technology, a Downflow Lo-Solids^® continuous cooking system, a new CombiScreen™ combined knotter/screening unit, the largest Andritz high-efficiency DD Washers in operation, and the largest pulp dewatering and drying system in Latin America (9.338 m working width). The whole line produced 3,468 t/d just months after start-up, exceeding its design capacity of 3,000 t/d.

A new drying machine, supplied by the Pulp Drying Systems Division to Jiang Lin Pulp Mill, China also started up successfully. The flash dryer supplied to M-real’s Kaskinen mill, Finland and the dryer upgrade at Zellstoff Pöls AG, Austria also started up successfully.

The new 5.55 m wide tissue machine for Shandong Hengan Paper Co. Ltd., China started up very successfully. This CrescentFormer machine for high-quality tissue paper has a production capacity of 60,000 t/a.

The new fiber preparation pilot plant in Graz, Austria was officially opened at the end of April 2005. With the new pilot plant, Andritz will be able to perform customer trials and R&D development work on complete systems. The plant, which can be used for both single machines and system trials, is suitable for treatment of many different raw materials, such as recycled fibers, old corrugated containers, and virgin fibers.

In spring 2006, Estonian Cell, one of the most modern high-yield hardwood mechanical pulp mills in the world, incorporating the latest technology in mechanical pulping, was in its final stages of completion. Andritz supplied the technologies and process equipment for the mill, which is expected to start up ahead of schedule. A detailed project discription of Estonian Cell can be found on page 53 of this report.