UPPC in SCG Paper HISTORY and MILESTONES

1968 – The Cement Association of the Philippines engaged the services of PHINMA to undertake studies to determine the feasibility of establishing a pulp and paper manufacturing operation, to ensure the continued availability of paper for cement sacks which at that time were largely imported.

The project study group was headed by Mr. Oscar J. Hilado, and included Mr. Vicente V. Serrano, Mr. Irwin R. Salvador, Mr. Manuel V. Pangilinan, and Mr. Cesar B. Lorenzo, Jr.

1969 – United Pulp and Paper Co., Inc. (UPPC) was incorporated and registered with the Securities and Exchange Commission. The shareholders included nine (9) cement companies namely Bacnotan Consolidated Industries, Inc., Marinduque Mining and Industrial Corporation, Iligan Cement Corporation, Filipinas Cement Corporation, Hi-Cement Corporation, Luzon Cement Corporation, Republic Cement Corporation, Fortune Cement Corporation and Rizal Cement Corporation, Pampanga Sugar Development Company (PASUDECO) and National Life Insurance Company were the non-cement institutional investors.

1970 – The supply and engineering contract, and the construction and erection contract, were awarded to Societe General D' Enterprise S.A. (SGE) of France.

1972 – Prospective key managers and operators of UPPC, 35 in all, started training for pulp and paper manufacturing operation at Siam Kraft Paper Ltd., in Ban Pong, Thailand.

1974 – UPPC managers took over the final completion and start-up of the pulp and paper mill from SGE.

1975 – UPPC completed its first full year of operation, utilizing only 39% of its capacity. Production volume: 10,400 MT

Net Sales: P 64 million; 11,704 MT

Net Loss: P 6.7 million

1983 – The Company made a turnaround to profitability, reporting net profits of P 7.4 million on net sales of P 155.0 million.

1988 – The sales of cement sack kraft paper dropped due to the continuing threat from the plastic based WPP (woven polypropylene) bag that captured a very large chunk of the gagging needs of cement companies.

As a continuation of a 5 year program to decrease the dependence of the cement market, marketing efforts increased the sales of other paper grades, of which, the corrugating medium was the most promising.

The Company invested P4.5 million, representing 30% ownership, in United Industrial Bag Company, Inc., a company which will engage in the conversion of kraft paper to pasted cement bags.

1989 – During the middle of the year, the Company decided to cease pulp mill operations in order to reduce costs. From the month of July onwards, these special grades were produced using waste paper in place of bagasse pulp in the furnishes.

The Company intensified its community development activities with the USIAD subsidized P 3.0 million, 3 year community-based health and sanitation project for four communities surrounding the plant.

1990 – The Company undertook Phase I of the major paper mill rehabilitation program which was expected to increase overall mill effective capacity from 25,000 MT to 27,000 MT per year. Corrugating medium sales volume grew by 65%, making the Company a major player in the CM market.

1994 – During the year, the Company implemented Phase II of the plant upgrading and expansion projects. The full-time ISO Task Force continued to work closely with the line organization to complete the voluminous documentation work required. A series of general orientation session of ISO 9000 Quality System requirements was held for all employees including top executives.

1995 – The Company entered into joint venture with Siam Pulp and Paper Co., Ltd. (SPPC), a member of the Siam Cement Group which is the largest cement and paper group in Thailand. SPPC decided to invest to gain 34% ownership of the Company, equally matching the ownership of the PHINMA Group. At the centerpiece of this joint venture is the Billion Peso Paper Machine No. 2 (PM-2) Project, which will be dedicated to the production of Corrugating Medium and Liner Board paper grades.

1996 – SPPC commissioned a group of technical personnel to support the team in-charge of the implementation and supervision of the PM2 project. Significantly, the year saw the successful conferment of the ISO 9002 certification of UPPC by the internationally recognized ISO certifying body, the Societe Generale de Suriellance (SGS).

1998 – The year ushered the addition of PM2, Effluent Treatment Plant and Co-Generation Plant. The new PM2 machine increased the overall annual capacity of the Plant to around 200,000 MT (PM1 and PM2).

PM2 had a successful start-up in September. As part of the expansion, a 30-megawatt co-generation plant was installed to meet the power and steam requirement of the plant. The new Effluent Treatment Plant started its operations in August. It is one of the most advanced waste treatment plant in the Philippines which employs state-of-the-art technology to ensure that the water being discharged out of the plant strictly follows and even exceeds the National standards.

1999 – UPPC received the "Special Award" from the Don Emilio Abello Energy Efficiency Awards (Department of Energy).

2000 – The Company started operating its first baling station located in Sta. Rosa Laguna. UPPC received the "Outstanding Award" from the Don Emilio Abello Energy Efficiency Awards (Department of Energy).

2004 – SPPC, joined by Thai Union Paper Industry Co., Ltd. (TUPI), increased its shareholdings to 99% to support UPPC's recapitalization and refinancing scheme. The Company received the "Outstanding Award" from the Don Emilio Abello Energy Efficiency Awards (Department of Energy). The company was given the "Hall of Fame Award" for the three consecutive years as Outstanding Awardee.

2005 - SCG Paper invested an additional 1.6 Billion Pesos for the construction of the 30-megawatt Circulating Fluidized Bed (CFB) Boiler which started its operation the following year. The Company opened three additional baling stations located in Cavite, San Fernando, and Balintawak.

2006 - UPPC was given the "Balikat ng Bayan" (Top Employer) award by the Social Security System. The award is given to companies that best contributed to the attainment of the agency's mandate of providing meaningful social and economic protection.

2007 – In November, the Company was granted a certificate for successfully conforming to the requirements of ISO 9001:2000 Quality Management System by SGS Philippines, Inc. In addition, the Company received a plaque of recognition from the Department of Environment and Natural Resources for achieving the Blue Rating (Satisfactory) in 2006. These awards are given to companies that consistently exceed government minimum standards on total suspended solids and biochemical oxygen demand.

2008 – To increase and effectively recover waste paper in the Manila area, the Company opened its fifth baling station located in Paranaque. The Company received a plaque of recognition from the Department of Environment and Natural Resources for achieving the Green Rating (Very Good) in 2007.

2009 – The year proved to be rewarding for UPPC as it was granted two certificates for successfully conforming to the requirements of ISO 14001:2004 Environmental Management System and OHSAS 18001:2007 Occupational Health and Safety Management System by SGS Philippines, Inc. during the beginning of the year. Likewise, the Company received its second Green Rating (Very Good) award from the Department of Environment and Natural Resources for 2008.

As a testament of its sincere concern for the environment, UPPC in SCG Paper was awarded the Green Choice Seal of Approval for their environmentally-sound manufacturing process and products by the National Ecolabelling Program of Green Choice Philippines (NELP-GCP). The company opened its sixth baling station located in Mandaluyong.

2010 – The Company invested five additional baling stations located in Isabella, Subic, Dagupan, Batangas and Meycauayan. UPPC was given a major award as Candidate Master for its systems compliance and best practices in waste management in the Zero Basura Olympics (ZBO) for Business; and was also awarded Champion for Reuse/Recycling for its 100% use of recycled paper and "zero sludge to landfill" project. UPPC moved forward as it was awarded the Silver Rating plaque in recognition of its green efforts in 2009.