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4 INDUSTRY NEWS


Pulp Paper & Logistics


Forest and paper chiefs discuss future of the industry


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ore than 20 forest and paper industry chief executives and association


leaders from around the world attended the International Council of Forest and Paper Association’s (ICFPA) seventh biennial International CEO Roundtable held at the beginning of May in Washington, DC. They met to discuss industry innovation and opportunities for the future. “Our industry creates products


that people around the world use and need,” said Mark Gardner, president and chief executive of Sappi North America, who chaired the roundtable. “Coming together and sharing best practices, ideas and insights allows us all to continue to make sustainable products for generations to come.” The chief executives discussed


industry improvements in sustainability practices and innovation as well as global developments in manufacturing, marketing, products and workforce. Keynote speaker Joey Reiman provided insights about using purpose to create a brighter future and lasting legacy for the industry. The chief executives endorsed


the Blue Sky Young Researchers Innovation Award initiative, which aims to reposition the global forest products sector, renew its image, and create interest in the industry as a future workplace. The ICFPA, which represents more than 30 national and regional forest and paper associations around the world, and 90 percent of global paper production and half of global wood production, has published its 2015 Sustainability Progress Report. It shows improvements on


a range of sustainability indicators and focuses on the industry’s contributions toward a green economy. “We are proud of the significant


progress our global industry has made on our sustainability commitments,” said ICFPA president Donna Harman. “We look forward to continuing to manufacture sustainable products that people use and need while contributing to the well-being of communities around the world.” The global sustainability


performance of the forest product industry is improving, with all aggregate indicators for reporting associations showing progress: ● Greenhouse gas emissions intensity were reduced by 17 per cent between 2005 and 2013.


● The share of bio-energy in the industry’s fuel mix increased by 8


Industry news in brief


Sales from Eldorado Celulose Brazil’s new pulp mill at Três Lagoas continue to rise. In the first quarter of 2015 they were up 53 per cent compared with the same quarter in 2014, at R$746 million, with shipments totalling 370,000 tons, up 12 percent. “The quarter represented an important step in the history of Eldorado,” said José Carlos Grubisich, president of Eldorado Brazil. “In the last twelve months, we exceeded the mark of R$ 1 billion in EBITDA, and our revenue grew 37 per cent compared with the same period last year. Also, since we are seen as a world reference and a global leader in the production of bleached pulp.”


May/June 2015


Kemira has completed its €153m acquisition of the AkzoNobel paper chemicals business that was announced in July 2014. Six of the AkzoNobel paper chemicals manufacturing sites and around 350 employees are to be transferred to Kemira. Kemira will also increase the production capacity of its own paper chemical manufacturing sites in order to realize expected production synergies.


Most European paper and forest product companies will maintain or increase their capital expenditure in 2015 to meet their expansion plans, says Moody’s.


These include Metsa Board Corporation, Mondi Plc, Sappi Limited, Smurfit Kappa Group Plc, Stora Enso Oyj and UPM- Kymmene. “We expect the aggregate


operating income of Moody’s rated European paper and forest product companies to increase by 1 to 3 per cent over the next 12-18 months,” says Matthias Volkmer, a Moody’s vice president and senior analyst. “This reflects our expectation


that increased operating earnings from rated packaging companies will outweigh those from paper producers, which continue to face secular declines, which is why our outlook for the sector is stable.”


Smurfit Kappa has agreed to acquired Inspirepac, a non- integrated corrugated, high quality print and display business in the UK from the Logson Group for £43.5 million. Privately-owned Inspirepac


operates two packaging plants and a two erecting plants in the North of England. Smurfit Kappa said the acquisition will further enhance its market leading position in the UK, and build on existing capabilities in the high quality print and point of sale market segments. The deal is expected to close in the second quarter of 2015 subject to customary closing conditions.


percentage points, to 61 per cent, since 2005.


● The number of hectares certified to a third-party sustainable forest management certification system increased by 41 percentage points, to 52 per cent of wood supply, since 2000.


● The global paper recycling rate increased by 11 percentage points, to 58 per cent, between 2001 and 2013.


● Onsite energy intensity was reduced by 4.3 percent between 2005 and 2013.


● Sulphur dioxide emissions decreased by 40 per cent between 2005 and 2013.


● Employees’ recordable incident rate decreased by 9 per cent between 2007 and 2013. The next ICFPA International CEO


Roundtable will take place in Berlin, Germany in 2017.


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