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Q: Demand: Supply for hardwood timber for paper manufacturing ( Answered 4 out of 5 stars,   1 Comment )
Question  
Subject: Demand: Supply for hardwood timber for paper manufacturing
Category: Business and Money > Economics
Asked by: inquisitive37-ga
List Price: $100.00
Posted: 12 Jul 2003 01:56 PDT
Expires: 11 Aug 2003 01:56 PDT
Question ID: 229087
I am interested in information regarding the market for inputs to the
paper manufacturing industry - specifically in the Asia Pacific
region. My understanding is that paper is made from pulp which is in
turn made from chipped timber. There are two broad timber types used -
softwoods and hardwoods. With this background in mind, and I stand to
be corrected on the information I have provided, I would like to know
:

1) HARDWOOD DEMAND: which companies are the key buyers of hardwood
timber, or hardwood timber chips, grown in Asia Pacific for use in the
paper manufacturing process and what is their respective market share?

2) HARDWOOD SUPPLY: which companies in which countries supply hardwood
timber, or hardwood timber chips, grown in Asia Pacific and what is
their respective market share?

3) HARDWOOD FUTURE: What are the predictions for future demand:supply
dynamics analysed by country / company?

Ideally any statistics provided for current demand and supply will
reconcile with each other - a matrix would be great.

Given that the subject matter - TREES - is of an environmental nature
there tends to be quite a bit of data available in the public domain -
it's just a matter of sorting through it and finding the relevant
stuff.
Answer  
Subject: Re: Demand: Supply for hardwood timber for paper manufacturing
Answered By: hlabadie-ga on 29 Jul 2003 14:38 PDT
Rated:4 out of 5 stars
 
After examining over 11 MB of articles and data obtained from on-line
sources, I cannot offer a definitive answer. There is no neat and
consistent matrix of supply and demand, no accurate market forecasts,
no clean division of market shares per company. Much of the data are
contradictory or outdated. The best sources of the compiled data that
you require are proprietary and expensive. Robert Flynn appears to the
single most frequently cited expert on the subject of commerce in
forestry products. One has to sort out reports from companies,
government agencies, UN organizations, industry marketing
associations, and advocacy groups, many of which have conflicting
biases and give inconsistent numbers. Even the Food and Agriculture
Organization of the United Nations, the most authoritative body for
the collection and dissemination of statistical information, confesses
that its reliance upon the reporting countries for compliance has
produced seemingly irreconciliable differences between capacity and
production data. This is, I believe, the best that can be done from
the material freely available.


Commercially produced report example:

'"The Outlook for Trade of Forest Products in the Pacific Rim to 2010"
is now available to subscribers. The purchase price is $2750 per copy
of the report. Additional copies are available at a cost of US$ 200
each. To order, fax this completed form to Wood Resources Int. Ltd. at
1-703-669-9225, or contact us at 1-703-669-9220, e-mail
Info@WRI-Ltd.com. An invoice payable upon receipt will be sent with
the reports.'



Here are some of the figures that I could find myself.


WOOD PULP IMPORTS 2001 (adapted from tables produced by the FAO site)
(NB, the wood type is undifferentiated between hard and soft, and the
category "pulp" can include other fiber sources, e.g., bagasse.)

http://apps1.fao.org/servlet/XteServlet.jrun?Areas=10&Areas=351&Areas=101&Areas=110&Areas=117&Areas=131&Areas=156&Items=1878&Elements=61&Years=2001&Format=Table&Xaxis=Countries&Yaxis=Years&Aggregate=

Quantities in (metric) tonnes.

Chemical Wood Pulp

China 4,916,800
Japan 2,052,300
Korea 2,119,300
Indonesia 418,900
Malaysia 57,700

Mechanical Wood Pulp

China 247,200
Japan 369,000
Korea 8,000
Indonesia 71,000
Malaysia n/a


Semi-Chemical Wood Pulp

China 271,400
Japan 61,000
Korea 172,000
Indonesia 70,900
Malaysia 3,200


Wood Pulp Exc Mechanical

China 5,567,000
Japan 2,255,300
Korea 2,299,300
Indonesia 715,600
Malaysia 61,200


Wood Pulp

China 5,814,200
Japan 2,624,300
Korea 2,307,300
Indonesia 786,600
Malaysia 61,200



PULP FOR PAPER IMPORTS  2001
http://apps1.fao.org/servlet/XteServlet.jrun?Areas=10&Areas=351&Areas=101&Areas=110&Areas=117&Areas=131&Areas=156&Items=1878&Elements=61&Years=2001&Format=Table&Xaxis=Countries&Yaxis=Years&Aggregate=

Ouantities in metric tonnes.

Pulp for Paper

China 5,454,708
Japan 2,487,300
Korea 2,305,300
Indonesia 564,200
Malaysia 60,900


TOTAL PULP FOR PAPER IMPORTS ASIA+
http://apps1.fao.org/servlet/XteServlet.jrun?Areas=860&Items=1878&Elements=61&Years=2001&Format=Table&Xaxis=Countries&Yaxis=Years&Aggregate=over_items+over_areas&Calculate=mean+std_dev&Domain=SUA&Ite

Pulp for Paper
   
Asia 12,367,456


PULP EXPORTS
http://apps1.fao.org/servlet/XteServlet.jrun?Areas=10&Areas=351&Areas=101&Areas=110&Areas=117&Areas=131&Areas=156&Items=1656&Items=1654&Items=1655&Items=1875&Items=1859&Elements=91&Years=2001&Format=

Quantities in metric tonnes.

Chemical Wood Pulp

China 31,408
Japan 92,000
Australia 2,000
Indonesia 1,697,200
New Zealand 451,000


Mechanical Wood Pulp

China 100
Japan n/a
Australia n/a
Indonesia 200
New Zealand 347,000


Wood Pulp

China 31,758
Japan 104,000
Australia 2,000
Indonesia 1,699,300
New Zealand 798,000


Wood Pulp Exc Mechanical

China 31,658
Japan 104,000
Australia 2,000
Indonesia 1,699,300
New Zealand 451,000


PULP FOR PAPER EXPORTS 2001
http://apps1.fao.org/servlet/XteServlet.jrun?Areas=10&Areas=351&Areas=101&Areas=110&Areas=117&Areas=131&Areas=156&Items=1878&Elements=91&Years=2001&Format=Table&Xaxis=Countries&Yaxis=Years&Aggregate=

Pulp for Paper

China 37,808
Australia 2,000
Indonesia 1,698,000
Japan 92,100
New Zealand 798,000

PULP FOR PAPER EXPORTS 2001 ASIA+
http://apps1.fao.org/servlet/XteServlet.jrun?Areas=860&Items=1878&Elements=91&Years=2001&Format=Table&Xaxis=Countries&Yaxis=Years&Aggregate=over_items+over_areas&Calculate=mean+std_dev&Domain=SUA&Ite

Pulp for Paper

Asia  2,299,391


Compare this figure for New Zealand's exports to that cited above by
the FAO in 1996:

ACPWP97 THE STATE OF THE INDUSTRY - NEW ZEALAND
http://www.fao.org/unfao/bodies/acpwp/acpwp38/gfsse.htm


680,911






MARKET PROJECTIONS

Market projections are virtually useless, as the recent market
conditions have belied past forecasts. Expansion of markets has not
occurred as projected in the middle and late 1990s, due to the Asian
recession, which has lasted nearly a decade in Japan. However, that
has not stopped plans for a shift in the supply chain from natural to
plantation sources.


The global wood market, prices and plantation investment: an
examination drawing on the Australian experience
http://cres.anu.edu.au/publications/clark%20j%202001%20ec.pdf

"The uncoupling of paper from wood pulp has intensified during the
1990s. Global paper consumption increased by an average 2.9% per annum
over 1990 to 1998, but the use of wood pulp to meet this paper
consumption grew by only 0.8% per annum over the same period. The use
of recycled paper grew by 3.7% per annum and non-wood pulp by 2.7% per
annum over the same period. The FAO expects these trends to continue,
with projected consumption of wood pulp growing by only 0.6% per annum
over 1997 to 2010 and wood pulp declining to 44% of the material input
for paper production by 2010 (Zhu et al. 1998).

New, relatively high yield pulping technologies further weaken the
linkage between paper and wood. Sedjo and Lyon (1990) note the
adoption of wood-saving technologies such as chemi-thermo-mechanical
(CTM) pulping which almost doubles traditional chemical pulp yields
per unit of wood input."
[...]
"The FAO dominates global wood consumption projection work, but the
projections have been criticized for the signifi-cance of revisions
(usually down) and the persistent over-estimation of sawn timber
consumption (A.J. Leslie, personal communication 1997). The first FAO
projections of global wood consumption in 2010, published in 1993 (FAO
1993), were revised down by 30% in 1999 (Fig. 6). In addition to being
optimistic in early projections, the FAO has Wood consumption (10 6 m
3 /yr) not realistically tracked wood-saving technology. The FAO
recognizes the systematic errors in its methodology and has embarked
on extensive re-modelling work (FAO 1997). Dissatisfaction with FAO
wood consumption projections has led to many analysts simply assuming
a consumption growth rate. In Australia, the projections of global
wood consumption prepared by Apsey and Reed (1994) and the Simons
Consulting Group (1994) have been widely used in policy formulation
(Cameron 1996; Centre for International Economics 1997; Ministerial
Council on Forestry, Fisheries and Aquaculture et al. 1997). Both sets
of projections appear to over-estimate consumption significantly.
Simons Consulting Group (1994, p. ii) justify using a 1.4% per annum
long-term growth in wood consumption based on an undocumented
‘consensus of international experts polled by the consultant’. Apsey
and Reed (1994, p. 4) justify using an average 1.5% per annum
long-term growth in wood consumption because it is ‘realistic on a
world wide basis’. Their projections were revised down by 13% (Apsey &
Reed 1998) due solely to commencing the assumed 1.5% per annum
compound growth from a later year."



The TOP FIVE paper comapnies in Japan are Nippon Unipac Holding (the
result of a merger in 2001 of Nippon Paper Industries and Daishowa
Paper Manufacturing), Oji Paper, Daio Paper, Mitsubishi Paper Mills,
and Hokuetsu Paper Mills.


JAPAN PULP AND PAPER COMPANY LIMITED
The Financial State of Japan's Top Five Paper Manufacturers in 2001
http://www.kamipa.co.jp/eng/news/issue112.html

"March 2002 marked the end of a financial year in which all five of
Japan's major paper manufacturers suffered substantial loses in both
their revenue and profit figures. The consolidated sales results for
the five companies, consisting of Nippon Unipac Holding, Oji Paper
Co., Ltd., Daio Paper Corporation, Mitsubishi Paper Mills Ltd., and
Hokuetsu Paper Mills, Ltd., fell by 4.2% year-on-year. However, this
result was dwarfed by a substantial 55.6% year-on-year decrease in
consolidated ordinary income.

Paper and paperboard production figures for fiscal 2001, compiled by
the Japan Paper Association, showed a 4.4% or 30.35 million ton
decrease compared with the figures for the previous year. This breaks
down to a decrease of 18.24 million tons (3.9%) for paper and 12.11
million tons (5.2%) for paperboard. As a result, paper production
dropped below fiscal 1999 levels and paperboard decreased for the
first time in three years."


Chemicals, Forest Products & General Merchandise Company
http://www.itochu.co.jp/main/div/chem/annual_chem_e.pdf

"What We Did in Fiscal Year 2002
In the pulp and paper field, ITOCHU increased its stake in Japan
Brazil Paper and Pulp Resources Development Co., Ltd., a parent
company of Celulose Nipo-Brasileira S.A. (CENIBRA) which promotes the
forestry and pulp manufacturing business in Brazil. CENIBRA is
considered to be one of the most important projects for us to be a
top-level global pulp trader, since its products are the most cost
competitive (see Topics)."
[...]
"The CENIBRA Project
Japan Brazil Paper and Pulp Resources Development Co., Ltd. (JBP),
composed of ITOCHU and major Japanese pulp manufacturing companies,
established CENIBRA in 1973, jointly with Companhia Vale do Rio Doce
of Brazil, to promote plantation and pulp manufacturing in Brazil. In
October 2001, ITOCHU increased its stake in JBP to about 26%, with a
12.4 billion investment when JBP increased its stake in CENIBRA to
100%. As a result, ITOCHU has become JBP’s second largest shareholder
next to Oji Paper Co., Ltd.
CENIBRA owns a plantation with 120,000 Ha. of sustainable hardwood and
a capacity to produce 820,000 tons of pulp annually. This is an
important project to maintain prominent forest resources, and to
contribute to ITOCHU’s worldwide sales strategy."

Overseas Afforestation Business—Tree Farm Concept
www.npaper.co.jp/e/ecology/p6-9.pdf 

"Creating recyclable resources through the Tree Farm Concept
The aim of Nippon Paper’s overseas afforestation ac-tivities—the
Company’s Tree Farm Concept—is to independently cultivate necessary
forestry resources, thereby securing stable raw materials for paper in
the future. Specific objectives include afforesting more than 100,000
hectares by fiscal 2008 and using these planted trees to supply more
than one million tons of wood chips annually. Nippon Paper commenced
overseas afforestation with its participation in a project in Chile in
1991 and has steadily expanded the scope of these activities to
Australia in 1995 and South Africa in 1996. The Company also began a
trial afforestation project in Myanmar in 1996. In 1998, Nippon Paper
became the first Japanese company to commence afforestation in China
for the purpose of securing raw`materials. As of the end of fiscal
1999, the Company`had afforested more than 28,000 hectares, and by
fiscal 2000, plans to afforest 6,400 additional hectares."
[...]
"As it progresses with its Tree Farm Concept, Nippon Paper has set a
target of obtaining more than 70% of its imports of hardwood chips
derived from planted areas by fiscal 2008. In fiscal 2000,
approximately 46% of the Company’s imports of hardwood chips were
already obtained from plantations."


Mitsubishi Paper Mills Limited
Expansion of Plantation Project in Tasmania, Australia
http://web.infoweb.ne.jp/mpm/eng/news/991004.html

"    1. Outline of Plantation Project

i. Project: The initial planned plantation area, which had an annual
planting rate of 1,500 hectares totaled 22,500 hectares, will be
expanded to an annually 1,700 hectares, for a total of 25,500
hectares. From 2012 approximately 500,000 tonnes per year of
plantation wood will be produced.
     ii. Species: Eucalyptus Globulus, Eucalyptus Nitens
    iii. Plantation Area: North East Tasmania, Australia"
{...}
"3. Outline of North Limited

A major forestry and mining resource company in Australia (previous
name: North Broken Hill Limited). Net assets of the North group of
companies are AUD 1,800 million, total turnover is in excess of AUD
2,000 million (as of End June 1999). North Forest Products is its
wholly owned forestry company with an annual turnover of A$220
million. North's total export quantity of hardwood chips in 1998 was
equivalent to 45% of the total chips exported from Australia to
Japan."



Japanese woodchip import market (2000)
http://sres.anu.edu.au/associated/marketreport/report14.pdf

"In recent years, Australia has received $600–650 million annually in
revenue from exports of some 4–4.5 million ‘bone dry’ tonnes (b.d.t.)
woodchips. Hardwood chips contribute about three-quarters to the total
export value and volume; softwood chips contribute the remainder.
Australia exports woodchips mainly to Japan, Korea, Taiwan and
Indonesia. However, by far the most significant and consistent market
is Japan; it buys around 95 per cent of the total Australian exports."


Market for forest products in South Korea (1999)
http://sres.anu.edu.au/associated/marketreport/report10.pdf

"In 1998-99 Korea jumped ahead of Hong Kong and Chinese Taipei to
become Australia’s third largest export market for forest products."
[...]
Woodchips (dry basis) 1.4 70.9 (‘000 m3)
[...]
"A Korean company has made a substantial investment in plantation
forestry in Western Australia. The company is Hansol; it is one of the
major manufacturers of pulp, paper and wood based panels in Korea.
According to Mr Frank Lee, the manager of Hansol’s Australian
subsidiary, the company has established about 10,000 hectares of
eucalypt plantations. Its target is to increase the area to 20,000
hectares by 2004."
[...]
"A recent FAO study, Global forest products consumption, production,
trade and prices: global forest products model projections to 2010"

http://www.fao.org/DOCREP/003/X1607E/X1607E00.HTM

ASIA

Table A1.10 Consumption of Woodpulp (thousand MT). (Continued)
http://www.fao.org/DOCREP/003/X1607E/X1607E49.htm#TopOfPage
  
                                     
Country  1980  1994  2000  2005  2010
ASIA    16558 26848 28308 30611 36699
Bangladesh 47   100    98   109   145
China    1729  3916  4020  3876  4023
India     376  1062  1219  1303  1364
Indonesia 115  1830  2027  2332  2579
Japan   11299 13928 11618 12473 13227
Korea     600  2391  3781  3944  4660
Malaysia    5   197   496   663   939
Pakistan   12    58   255   268   308
Philippines198  214   177   161   218
Australia  968 1210  1898  2468  2834
New Zealand 655 708   748   781   832


Table A1.11 Consumption of Mechanical Pulp (thousand MT). (Continued)
http://www.fao.org/DOCREP/003/X1607E/X1607E53.htm#TopOfPage


Country  1980  1994  2000  2005  2010
ASIA     3472  4100  5919  6576  7257
Bangladesh 14    46    43    50    66
China     348   668  1277  1501  1588
India      42   236   341   373   410
Indonesia  39    98   359   430   496
Japan    2145  2034  1556  1606  1667
Korea     168   179   896   924  1070
Malaysia    0     0    89   116   186
Pakistan    5     0    61    65    77
Philippines 41   53    45    29    31
Thailand    2     7   277   262   236
Australia 216   355   527   691   825
New Zealand 308 328   214   211   215


Table A1.12 Consumption of Chemical Pulp (thousand MT). (Continued)
http://www.fao.org/DOCREP/003/X1607E/X1607E57.htm#TopOfPage

Country  1980  1994  2000  2005  2010
ASIA    13086 22748 22389 24034 26362
Bangladesh 33    54    55    60    78
China    1381  3248  2743  2375  2435
India     334   826   878   930   954
Indonesia  76  1732  1669  1902  2083
Japan    9154 11894 10062 10868 11560
Korea     432  2212  2885  3020  3590
Malaysia    5   197   407   548   754
Pakistan    7    58   194   204   231
Philippines 157 161   133   131   187
Thailand   78   211   796   734   682
Australia 752   855  1371  1777  2009
New Zealand 347 380   534   570   616


Table A2.10 Production of Woodpulp (thousand MT). (Continued)
http://www.fao.org/DOCREP/003/X1607E/X1607E122.htm#TopOfPage

Country  1980  1994  2000  2005  2010
ASIA    13712 18847 20380 23027 26320
Bangladesh 41    96    92    93   102
China    1343  2454  3062  3085  3070
India     340   892  1152  1273  1351
Indonesia  46  1259  1806  2234  2535
Japan    9473 10435  7498  9045 11006
Korea     167   532  1540  1359  1684
Malaysia    0   103   478   659   938
Pakistan    0     0    85    65    90
Philippines 144 151   102    74   117
Thailand    0    64   791   607   375
Australia 697   987  1814  2430  2817
New Zealand 1122 1358 1556 1612  1667


Table A3. 10 Import of Woodpulp (thousand MT). (Continued)
http://www.fao.org/DOCREP/003/X1607E/X1607E195.htm#TopOfPage

Country  1980  1994  2000  2005  2010
ASIA     3455  8906  8826  8458  8152
China     419  1477   965   798   957
India      36   170    68    30    13
Indonesia  69   691   266   118    52
Japan    1925  3505  4124  3431  2222
Korea     433  1859  2241  2585  2976
Malaysia    5    94    18     4     1
Pakistan   12    58   170   204   218
Philippines 55   63    75    87   101
Thailand    80  211   292   392   544
Australia  271  223    84    37    17
New Zealand  8   16     6     3     1


Table A4.10 Export of Woodpulp (thousand MT). (Continued)
http://www.fao.org/DOCREP/003/X1607E/X1607E268.htm#TopOfPage

Country  1980  1994  2000  2005  2010
ASIA      609   905   898   874   853
China      33    15     7     7     3
Indonesia   0   120    45    20     9
Japan      99    12     5     2     1
Thailand    0    57    10     2     1
New Zealand 475  666  814   833   836




PULP AND PAPER CAPACITIES, 2001-2006
ftp://ftp.fao.org/docrep/fao/004/y3995t/y3995t.pdf

AUSTRALIA
1000 METRIC TONS (AIR DRY) PER YEAR
 1.11 MECHANICAL NON-CONIFEROUS PULP
2001-2006        110 per annum

1.31 SEMI-CHEMICAL NON-CONIFEROUS PULP
2001 205
2002-2006        200 per annum

1.421 BLEACHED NON-CONIFEROUS SULPHITE PULP
2001-2003         27 per annum
2004-2006         28 per annum

1.441 BLEACHED NON-CONIFEROUS SULPHATE+SODA PULP
2001-2006        145 per annum


INDONESIA

1.31 SEMI-CHEMICAL NON-CONIFEROUS PULP
2001-2006       277 per annum

1.441 BLEACHED NON-CONIFEROUS SULPHATE+SODA PULP
2001           2385 per annum
2002           2635 per annum
2003-2004      2835 per annum


JAPAN

1.441 BLEACHED NON-CONIFEROUS SULPHATE+SODA PULP
2001-2006       7477 per annum capacity
2001-2006        514 per annum production


NEW ZEALAND

1.31 SEMI-CHEMICAL NON-CONIFEROUS PULP
2001-2006         48 per annum

1.441 BLEACHED NON-CONIFEROUS SULPHATE+SODA PULP
2001-2006         48 per annum




Update on the International Woodchip Market
http://www.wri-ltd.com/PPT%20presentations/Cint2002.pdf

"After reaching record levels in 2000, Japanese hardwood chip imports
declined 5% in 2001 and are down 3- 4% in 2002"
[...]
"Japanese imports of hardwood chips from Australia and S. Africa have
increased, but imports from the US have plunged"
[...]
"Plantation forests are taking over much of the international pulpwood
trade"
[...]
"The projected supply of hardwood chips from plantations appears to be
greatly in excess of current market demand"


Overview of the International Woodchip Markets
flynn.pdf
http://www.cintrafor.org/OUTREACH_TAB/presentations/Flynn.pdf

"Pacific Rim Woodchip Imports, 1999
Percent by Volume
Taiwan
4.6%
Indonesia
0.3%
Japan
88.0%
Korea
7.2%
Source: DANA/Flynn, 2000"
[...]
"• Japan typically accounts for about 90% of the Pacific Rim woodchip
trade. Prices in Japan are higher than any other market.
• Korea’s share was higher than normal in 1999 due to restocking of
very low inventory levels.
• Only one pulp mill imports chips in Korea, and two small mills in
Taiwan.
• Indonesia emerged as a new market in late 1999, and has been
receiving regular shipments from Australia in 2000. There is hope of a
softwood chip market in China developing soon.
• Japan’s consumption of domestic chips has been declining steadily
since the late 1980s. Through July, consumption of domestic chips is
down 1.1% in 2000, compared with 1999."
[...]
"Japan: Sources of Hardwood Chip Imports,
1999
Australia
27.0%
USA
26.5%
Chile
13.8%
S. Africa
12.5%
Brazil
3.0%
Other
12.2%
China
5.0%
Source: Japan Ministry of Finance

Japan: Hardwood Chip Imports,
Percent by Source, Jan - August, 2000
Australia
27.8%
S. Africa
13.2%
Other
13.3%
Brazil
3.1%
China
6.0%
• The US share of Japanese hardwood chip imports peaked in 1996, at
31.7%, and has been steadily declining.
• Australia’s market share was 60-70% through 1987, but has reduced as
other supply sources have developed. Volume from Australia peaked in
1995, at nearly 3.0 million BDMT.
• Chile only began exporting in 1987, the same year that chip exports
began from the US South. Volume from Chile also peaked in 1995, at 1.9
million BDMT.
• The "Other" category included 11 other supply sources in 1999.
• Although total hardwood chip imports are up 10% this year, the US
share has declined to less than 23%, its lowest level since 1987.
• Chile’s market share declined slightly, but all other major sources
are higher, and some "Other" sources such as Thailand and Vietnam have
also increased shipments in 2000.
• Imports from Australia are at record pace, and may reach 3.2 million
BDMT for the year. The volume from South Africa is also expected to
reach a record level of 1.5-1.6 million BDMT."

newslettersample.pdf
Timber Mart-South
Market Newsletter 1 st Quarter 2001 – Vol. 6 No. 1
www.tmart-south.com/tmart/pdf/samplereport/newslettersample.pdf

"On April 2, Bowater Incorporated announced an agreement to purchase
Alliance Forest Products Inc. Bowater will add Alliance’s
supercalendered and specialty papers to Bowater’s coated groundwood
and value-added paper production. Bowater is the second largest
producer of newsprint in North America, with up to 3.1 million metric
tons capacity (including the Mokpo, South Korea mill) and third
largest producer of market pulp."


chapter02.pdf
INTERNATIONAL PERSPECTIVE
www.pc.gov.au/ic/inquiry/32addfur/finalreport/chapter02.pdf


388 hecatres of closed broadleaf forest in Asia

Table 2.3: The world’s 20 largest forest products companies, 1991 a

International Paper USA
Georgia-Pacific USA
Stora Sweden
Weyerhaeuser USA
Kimberly-Clark USA
Fletcher Challenge b NZ
Repola Finland 
Svenska Cellulosa Sweden
Stone Container USA 
Scott Paper USA 
Champion International USA
Oji Paper Japan
Mead USA
James River USA
Arjo Wiggins Appleton UK
Jujo Paper Japan
Boise Cascade USA
Noranda Forest Canada
Amcor Aust
Honshu Paper Japan


"•Woodchips - Japan imports approximately 80 per cent of all woodchips
traded internationally. The United States and Australia are the main
suppliers of woodchips, although Australia’s export share has fallen
over the last few years as a result of increased exports from
countries such as Chile and South Africa."


FOREST POLICY AND CONSERVATION MOVEMENTS IN
THE REPUBLIC OF KOREA
http://www.iges.or.jp/en/fc/phase1/3ws-11-youn.pdf

There are three kinds of pulp mills in ROK; namely four ground wood
pulp mills, a thermo-mechanical pulp mill, and a chemical mill. The
production capacity has increased from 35,600 tons in 1960 to 852,000
tons in 1997. The chemical pulp mill with production capacity of
400,000 tons per year consumes mainly hardwood chips while the other
mills consume pine logs and chips.

Table 5. Supply of raw materials for Korean paper industry (unit:
metric ton)
1970 1975 1980 1985 1990 1995 1996
Pulp 239,695
(65.1%)
325,250
(45.6%)
620,264
(36.7%)
834,611
(35.5%)
1,457,61
2
(30.4%)
2,218,15
8
(31.0%)
2,526,44
7
(31.9%)

Pulp imported from overseas in 1997 was 1.981 million tons, of which
1.798 tons was chemical pulp (FAO 1999). The source of pulp imported
includes USA, Canada, Indonesia, Brazil, Chile and New Zealand.


Pulp, Paper and Paperboard Mills
1_d_pulp_paper_e.pdf
www.nccp.ca/NCCP/national_stakeholders/ pdf/1_d_pulp_paper_e.pdf

Canada is the world’s largest exporter of commodity-grade pulp and
paper products.

Wood is made up of cellulose fibres held together by a substance
called lignin. The first stage of papermaking from wood chips and
residues involves breaking this material down into its basic
constituents. Most Canadian market pulp mills use a chemical process,
called the Kraft process, for this task. In this process, the wood
chips and residues are put into a chemical solution which, when placed
under high pressure, dissolves the lignin holding the cellulose fibres
together. The output is wood pulp, in solution, and a residual
lignin-bearing liquid called black liquor. The majority of newsprint
mills use a mechanical pulping method which grinds the input material
into pulp. When recovered waste paper is the raw material, it does not
have to be “re-pulped”, so it is dissolved and de-inked before use.
Pulp is often bleached to increase its “brightness” and, if being
sold, must then be dried.

11.0 per cent of Canada's pulp exports go to Japan. (41.4 per cent go
to the US.)

In 2000, Canada shipped about $C 1 billion worth of market pulp to
Japan, accounting for 43 per cent of its imports of that commodity.
The US held the second largest share of Japanese imports, 29 per cent,
followed by Brazil, 11 per cent, Chile, 4 per cent, and non-Annex B
countries at 6.1 per cent. Thus, non-Annex B countries and the US held
49 per cent of Japanese imports.



Paperlopp.com - leading the pulp...


"Indonesian pulp mill nears completion

PT Tanjungenim Lestari Pulp in southern Sumatra, Indonesia, is
expected to begin trial runs by the end of the year, with commercially
saleable pulp available in first-quarter 2000. Construction began in
February 1998 on the $1.2 billion, one-line 450,000 mtpy bleached
hardwood kraft market pulp mill. It will be the world’s first 100%
acacia-sourced mill. The mill is the largest market pulp project to
come onstream in recent times and the first greenfield market pulp
mill to be built since late 1997."


[ASIA PACIFIC RESOURCE INTERNATIONAL LIMITED]
APRIL plans new kraft pulp line

"Asia Pacific Resources International Ltd. (APRIL) is planning to
build a new 450,000 mtpy bleached hardwood kraft pulp line at its
Riaupulp mill in Kerinci, Indonesia. One-third of the required $524
million has been financed, mainly through company equity. Future plans
call to boost capacity of the new pulp line to 1.1 million mtpy.

The company has earmarked the expansion an “immediate priority” and
expects the pulp line to start production 18 months after all the
financing has been committed which is expected in the near future.
APRIL said UPM-Kymmene would not provide the remaining financing.

Finnish papermaker UPM-Kymmene is a partner with the company in its
uncoated free-sheet paper operations in Indonesia and China. Plans for
a second uncoated free-sheet PM with a capacity of 350,000 mtpy at the
mill have been hampered by financing difficulties. Talks are
continuing between APRIL, UPM and Valmet Corp., which is to supply the
paper machine.

APRIL is still progressing with a $100 million debottlenecking program
on Riaupulp's No. 1 pulp line to boost bleached kraft pulp capacity by
100,000 mtpy to 850,000 mtpy. A significant amount of work has been
completed, including the installation of an additional digester, wood
handling and recovery boiler capacity, allowing for some incremental
production. The project is expected to be completed by the end of the
year."
[...]
"Chinese newsprint mill to start in 2000

Plans by the Black Dragon Group in China to build a greenfield
newsprint mill in Qiqihar, Heilongjiang province, are being slowed by
pulping equipment delivery problems. Most of the mill's pulp line has
been installed, but delivery of two refiners have been held up in
customs.

Andritz Inc. supplied the 200 mtpd alkaline peroxide pulp line. Black
Dragon expected to start up the pulp line as soon as possible, and the
first parts for the 220,000 mtpy paper machine from Valmet Corp. are
scheduled to be delivered in December with start-up of the machine
scheduled for late 2000. The 625 mtpd PM has a design speed of 5,900
ft/min and a wire width of 240 in. and will manufacture 48.8 g/m2
newsprint for the domestic market."
[...]
"GLOBAL WOODPULP CAPACITY FOR PAPER AND PAPERBOARD BY REGION,
1998-2001*
 (000 mtpy)
              1998          1999           2000          2001

             Total  Market  Total  Market Total  Market  Total  Market
                     Pulp           Pulp          Pulp           Pulp
North
America     91,462  20,034 92,554  19,64392,035  19,672 92,319  19,809
Canada      28,291  11,537 28,140  11,23328,320  11,164 28,342  11,155
United
States      63,171  8,497  64,414  8,410 63,715  8,508  63,977  8,654
Europe      53,296  13,610 53,398  13,48954,150  13,776 54,918  13,673
Asia/Pacific
Rim         32,052  5,205  32,092  5,205 32,102  5,205  32,631  5,730
Latin
America     11,569  5,339  11,915  5,478 12,083  5,537  12,223  5,551
Africa      2,913   834    2,925   860   2,925   860    2,925   860
Total
woodpulp    191,292 45,022 192,884 44,675193,295 45,050 195,016 45,623
*Not all countries reporting.Source: Food and Agriculture Organization
of the United Nations."


KOREA

Korea Forest Products
Market Report
2001
http://www.dced.state.ak.us/trade/pub/koreatimberreport.pdf

"The value of Korea’s timber import has been increased continuously
and was $1.6 billion USD in 2000, up 11.7% from 1999. Meanwhile,
Korea’s demand for timber is projected to reach 10,935 mmbf in 2001, a
2.7% increase over 2000."
[...]
"According to Korea’s timber demand and supply plan for 2001 released
by Korea Forest Service, the total demand for Korea’s forest products
is projected to reach 25,851,000 m 3 (approx. 10,934,973,000 board
feet) in 2001, which is 2.7% up from the previous year. The projected
demand for 2001 will be met by the following supply:

Demand in 2001: 25,851,000 m 3 (10,935 mmbf)
Supply in 2001: Import 24,411,000 m 3 (10,326 mmbf) Domestic 1,440,000
m 3 (609 mmbf )

The imported timber is expected to account for 94.4% of the total
demand in 2001, with locally produced timber at 5.6%

By use, the demand for pulp and chip is projected to reach 10,894,000
m 3 (42%), lumber 6,456,000 m 3 (25%), plywood 3,103,000 m 3 (12%),
board 1,988,000 m 3 (8%), and pit-prop 108,000 m 3 (0.4%)."

AUSTRALIA

Newsletter
SPECIAL EDITION 2002
http://www.gunns.com.au/plantations/newsletters/0835SpecialNews.pdf

"John (J): Today Gunns is Australia’s leading fully integrated
hardwood forest products company. The acquisition and integration of
Boral’s forestry operations and North Forest Products over the last
two years has increased the depth of Gunns’ operations enormously. In
particular these acquisitions mean than Gunns is now the largest
hardwood woodchip export company in the world."

Newsletter
SUMMER 2002
http://www.gunns.com.au/plantations/newsletters/0802SummerNews.pdf

"Les (L): We are entering a very exciting period. Recently Gunns
signed a contract with China’s new pulp and paper mill - Rizhao Pulp &
Paper Co as a principal supplier of hardwood chips. Gunns has over
three decades of trading history with the Japanese and is highly
regarded by its customers because of its reliability, quality control
and value-add, through our quality certification by laboratory testing
of pulp and paper samples. In the Asian region Gunns customers include
Japan, Korea, Indonesia, Taiwan and now China."

MARKET OVERVIEW – THE AUSTRALIAN HARDWOOD PLANTATION INDUSTRY
http://www.ausagrigroup.com.au/download%20files/aag_2003_marketoverview_hardwood.pdf

"There is currently 587,856 hectares of Australia devoted to hardwood
eucalypt plantations, with the majority of these aged less than ten
years. Hardwood makes up 37% of the total standing forestry plantation
in this country and is increasing it’s share each year."
[...]
"The originally employed species of Eucalyptus globulus (Tasmanian
Blue Gum) is still the major contributor to Australian Hardwood. It
makes up 62% of all eucalypt plantations, featuring in all major
growth regions and due to it’s fast growth rate and premium wood
fibres is primarily harvested for export woodchip, pulping and paper
production.

Other Eucalypt species used in Australian hardwood production include
Spotted gum, Sugar gum, Shining gum, Mountain ash, Flooded gum, and
more recently in Northern Australia, Gympie Messmate and the
Chinchilla white gum."
[...]
"Australia is currently well positioned to have continual, and
possibly greater success in the hardwood woodchip market, with our
traditional competitor in the dominant Japanese market, the US,
significantly reducing it’s export share over the last four years.
Currently harvesting hardwood almost exclusively from native forests,
American production has come under severe environmental pressure and
volumes of hardwood out of the US have fallen dramatically. US exports
to Japan in 2002 were insignificant against Australia, Chile and South
Africa, while predictions indicate that this figure will be close to
nothing by 2010 (Figure 4). In 2002 Australia exported 88% of it’s
hardwood woodchip exports to Japan (ABARE 2002)."


woodchipping.html
http://rubens.anu.edu.au/student.projects/hemp/woodchipping.html

"Boral employs 22,000 people at 1,000 locations in 23 countries. Its
operating profit for 1994 was $424.7 million and its total assets $5.6
billion.

It is the second largest hardwood woodchip exporter in the world,
exporting 947,000 tonnes p.a. from Tasmania and 500,000 from New South
Wales."
[...]
"Sawmillers Export Limited (SELP)
SELP, a subsidary of Boral, operates out of Newcastle, NSW, and has a
Federal export licence of 500,000 tonnes per year, although it has
never reached this level (320,000 tonnes in 1993). Japanese pulp and
paper trading multinational, Itochu, is a minority shareholder.

SELP obtains all its woodchips from the native forests of the north
coast of NSW. Boral contractors have logged a number of high
conservation value forests in northern NSW, and it is estimated that
it has control of 60% of the sawlog quotas from NSW public forests."
[...]
DAISHOWA PAPER MANUFACTURING CO.
"This company is 100% Japanese owned. Orginally split between the
majority owner Daishowa Paper Manufacturing Company Limited, based in
Fuji City, Japan, and Itochu Corporation, Daishowa sold its 62.5%
share to the company's founding Saito family division, Daishowa
Ashitaka Rinsan Kogyo for $US49 million in 1990. Just who benefited
from this sale, and how, is not known.

Daishowa imports woodchips and pulp from Australia, Brazil, Chile,
Canada, Finland, Portugal, Thailand, Russia and the US."
[...]
"Established in Eden in 1967, Harris Daishowa has been the driving
force behind the logging of thousands of hectares of old growth and
wilderness forests in Southeast NSW, and Eastern Gippsland, Victoria.
In 1994 the company exported 893,521 tonnes of woodchips and reduced
its federal export licence from 950,000 tonnes per year to 900,000,
reflecting the then sluggish Japanese pulp and paper market. The
company exports 80% of NSW woodchips."

GUNNS LTD
"It is also the ultimate holding company of Kauri Timbers, based in
Smithton in the state's north west. Another related entity, Romcke
Specialised Woods sells a wide range of imported tropical and
temperate rainforest timbers.

Gunns, along with North Forest Products will be one of the main
beneficiaries from wet eucalypt forest logging operations in and
around Australia's largest area of rainforest, the Tarkine, in
Tasmania's north west.

In 1994, the company obtained permission from Federal Resources
Minister David Beddall to export 200,000 tonnes of its "sawmill
redidue" as woodchips to Japan, which may result in the construction
of another chip mill in the north west. It has indicated a wish to
ultimately chip 475,000 tpa."

MIDWAY FOREST PRODUCTS
"Midway Forest Products exports eucalypt woodchips from Corio Bay in
Geelong, Victoria. They source their woodchips from over 80 sawmills
throughout Victoria and Southern New South Wales (as far north as
Tumut). Currently they have a federal export licence through the
Department of Primary Resources to export 313,000 tonnes of woodchips
per year sourced only from 'sawlog residues and silvicultural
thinnings', although Midway is also chipping whole logs."

NORTH BROKEN HILL (North Forest Products)
"NBH's subsidary North Forest Products is the world's largest exporter
of hardwood chips, and holds a licence of 1,878,000 tonnes per annum,
divided between Longreach, on the Tamar River, northern Tasmania
(1,065,000tpa) and at Triabunna, southern Tasmania (813,000 tpa).
Almost all woodchips are exported to Japan to Nippon Paper Industries,
New Oji and Mitsubishi. Other related entites include Australian
Forest Holdings and Tamanian Pulp and Forest Holdings (TPFH)."

QUEENSLAND HARDWOOD RESOURCES PTY LTD

WESFARMERS
"Based in Perth, Western Australia, this company operates a woodchip
mill in Manjimup and an export facility at Bunbury. It has a federal
export licence of 900,000 tpa although in 1992 exports totalled
830,000 tonnes."

Whittakers
"Based in Greenbushes, WA Whittakers is a Malaysian-owned sawmilling
company that markets its "residual" woodchips through a subsidary
company, Southern Plantations Chip Company. The company relies
entirely on its forestry activities for its income, with half of its
profits received from woodchips.

It has a current federal export licence of 110,000 tpa, but there are
plans for a new native forest based woodchip mill that could initially
process 500,000 tonnes of woodchips a year"





INDONESIA

INDONESIA - PULP AND PAPER - End User Analysis
http://strategis.ic.gc.ca/SSGF/dd73687f.html

"Installed Production Capacity as of 1997
(000's/tonnes/year)

                                         Pulp         Paper
PT. Indah Kiat Pulp & Paper Corp.       1,435         1,254
PT. Lontar Papyrus Pulp & Paper Industry 565            224

Sinar Mas Group had formed 2 holding companies for its pulp and paper
operations: PT. Purinusa for its operations in Indonesia and Asia Pulp
& Paper Co. Ltd for all of its operation in the rest of the world.
Please refer to table 9 for Sinar Mas's current expansion projects."
[...]
"
Raja Garuda Mas Group (RGM Group) represents the second largest pulp
manufacturer. It consists of PT. Riau Andalan Pulp & Paper which
produces 600,000 ton/year of pulp and PT. Inti Indorayon Utama which
produces 220,000 ton/year of pulp and 60,000 ton/year of rayon fiber. 
The RGM Group exports 70% of its annual production of approximately
240,000 metric tonnes of hardwood pulp and 60,000 tonnes of rayon
fiber.

PT. Pakerin manufactures 150,000 ton/year of pulp and 700,000 ton/year
of paper. Pakerin is the second largest p&p producer on the the island
of Java. Besides pulp, Pakerin produces corrugating medium, kraft
liner, and boards.

PT. Kiani Kertas has the largest single line pulp machine, which
produces 500,000 ton/year. Kiani is one of the subsidiary companies of
Kalimanis Group owned by the timber tycoon Mr. Muhammad "Bob Hasan",
known as a close friend of former President Soeharto. Kiani's project
in East Kalimantan includes a deep-water port, an airport with a
2,500-meter runway, and a residential complex for about 1,000
employees. Currently, Kiani is restructuring and rescheduling its
debts with South Korean and Japanese bankers for the approximate
amount of USD 1.3 billion. At full capacity, the mill has a projected
annual revenue of USD 225 million. Mr. Hasan estimated Kalimanis group
to be worth of USD 3 billion to USD 4 billion. A reliable source at
Kiani confirmed that Kiani has opened the opportunity for a strategic
partnership to help run the mill.

PT. Tanjung Enim Lestari Pulp & Paper's mill is currently still under
construction in South Sumatra. It will produce pulp only with an
estimated production capacity of 450,000 ton/year. It is expected to
commence operation in September 1999."
[...]
LIST OF PULP AND PAPER MILLS EXPANSION PROJECTS

Company                            Mill    Capacity (000's/TPA)
                               Location       Pulp     Paper

PT. Lontar Papyrus Pulp&Paper Ind. Jambi      440        0
PT. Riau Andalan Pulp & Paper       Riau      500      300
PT. Pakerin                      S. Sumatra    150       0
PT. Fajar Surya Wisesa          E.Kalimantan   300       0
PT. Kertas Basuki Rachmat       W.Kalimantan   250       0"


INDONESIA - PULP AND PAPER - ISA981101
http://www.ita.doc.gov/td/forestprod/indonesia.htm

"Table 3

STATISTICS OF PULP 1987-1996 (IN METRIC TONNES)

Year     Capacity  Production    Import    Export   Consumption
1987     515,000     325,000     232,500    7,500     550,000
1988     605,900     368,400     199,300    7,700     560,000
1989     705,900     461,400     208,000   86,480     582,920
1990    1,000,000    697,000     217,000  181,000     733,000
1991    1,100,000    850,000     242,300  107,200     985,100
1992    1,100,000    870,000     447,700  111,000    1,206,700
1993    1,334,700    900,000     705,700  123,600    1,482,100
1994    2,054,700  1,314,300     687,000  243,200    1,758,100
1995    2,628,600  2,022,120     511,850  576,200    1,957,770
1996    2,740,600  2,560,510     836,080 1,127,390   2,269,200

Source: Indonesian Pulp and Paper Association"

Asia Pulp & Paper
Asia Pulp and Paper Company, Ltd.
http://www-1.gsb.columbia.edu/journals/files/chazen/Asia_Pulp_and_Paper.pdf

"In April 1999, a Singaporean company named Asia Pulp & Paper (APP)
raised more than U.S.$400 million on the New York Stock Exchange
through an issue of American Depositary Receipts (ADRs). This was
APP’s third such offering in the United States. The company had
originally listed on the NYSE through an initial public offering in
April 1995, when it raised U.S.$311 million at U.S.$11.50/ADR. This
IPO was followed in late 1997 by a secondary ADR offering, which
raised U.S.$228 million. Together these three equity issues raised
almost U.S.$1 billion for APP. This was quite an achievement for a
company that had been only incorporated in Singapore in 1994. APP was
the darling of emerging-market equity investors. It represented a new
breed of Asian entrepreneur. This company would not be confined to a
home country or geographic region. It sought to compete globally in
the brutally competitive pulp and paper commodity markets. The company
also had the competitive advantage of being one of the world’s
lowest-cost producers of pulp through long-term concession rights to
more than 540 thousand hectares of tropical hardwood forests (Lee
2001)."

"The following is an excerpt from one of Asia Pulp & Paper’s filings
with the United States Securities and Exchange Commission:
2. Who We Are
We are one of Asia’s largest pulp and paper producers outside of
Japan, and one of the lowest-cost producers of pulp and paper in the
world. Most of our production facilities are in Indonesia, and we also
have facilities in China and India. In recent years, we have had
leading market shares in the Indonesian printing and writing paper
market, as well as other paper markets in Singapore, Hong Kong, and
Malaysia. As a result of our capacity expansion, as well as the
economic difficulties in Indonesia beginning in late 1997, we shifted
our primary focus to markets outside of Indonesia, particularly other
markets in Asia, such as China and Japan, and key developed markets in
Europe and North America. We now sell our products in over 60
countries worldwide. As a result, our sales outside of Indonesia
increased to approximately 87% of our consolidated net sales in 1998
from approximately 65% in 1997.
From 1994 to the present, our annual production capacity for:"
[...]
"• Pulp increased from approximately 1.2 million tonnes to
approximately 2.2 million tonnes"
[...]
"3. Background
APP was incorporated in Singapore in 1994, but its roots were in
Indonesia. The company was created to hold the pulp, paper and
packaging operations of the Sinar Mas Group, an Indonesian business
conglomerate that was controlled by the Widjaya family. The Widjayas
were well known in Indonesia and had a reputation as hard-nosed
businessmen. Unlike some Indonesian business groups that relied on
cronylike contacts with Indonesia’s then head of state, Suharto, to
facilitate business dealings, the Widjayas maintained a low profile
and concentrated on skillfully expanding their businesses. Those
business interests included pulp and paper, palm oil plantations, real
estate development and financial services, the last through Bank
Internasional Indonesia (BII). The pulp, papers and packaging assets
of the Sinar Mas Group consisted of four Indonesian companies, two of
which, Tjiwi Kimia and Indah Kiat, were publicly listed on the
Surabaya Stock Exchange. (The other two companies were Pindo Deli and
Lontar Papyrus.) These assets were consolidated into APP, the holding
company in Singapore, prior to APP’s listing on the NYSE in April
1995."



Industry Evolution in Developing Countries:
the Indonesian Pulp and Paper Industry
http://www.wiwi.uni-augsburg.de/vwl/hanusch/emaee/Papers/Van_Dijk.pdf

"4 Historical Overview
In 1996, Before the Asian crisis, the pulp and paper industry was
Indonesia’s tenth largest industrial sector in terms of value added.
Especially in the 1990s, the industry went through a phase of enormous
growth of on average 20 percent per year, becoming an important
international player. At the risk of over simplification, the
development of the pulp and paper industry can be divided into four
sub periods, which resemble, to a large extent, the overall
development of the manufacturing sector in Indonesia."
[...]
"In the end of the 80s, the industry started to integrate backward
into the production of pulp. The pioneering company was Indah Kiat,
which set up the first large non-integrated pulp mill in Riau, Sumatra
with a capacity of 100,000 tpy in 1984. The mill was started up with
the intention to supply the paper mills in the Indah Kiat group, which
were still dependent on expensive imports. In 1989, the first large
non- integrated pulp mill, PT Inti Indorayon Utama, fully aimed at
producing market pulp started production with a capacity of 180,000
tpy (Laurila, 1989; Harianto et al., 1998). In the next years, pulp
capacity was boosted by the expansion of the existing mills and the
start- up of several world-class pulp mills. With a capacity of
750,000, the pulp mill of Riau Andalan Pulp and Paper (RAPP) was the
single largest pulp line in the world (Stafford, 2000)."
[...]
"As a consequence of the rapid expansion, Indonesia became a net
exporter of pulp in 1995. In 1996, Indonesia ranked seventh and
sixteenth, on the list of the worlds largest exporters of pulp and
paper, respectively (FAO, 2002)."
[...]
"The existence of a dual market structure is mainly caused by the
behaviour of one dominant market player, Asian Pulp and Paper (APP),
owned by the Sinar Mas Group, one of the largest conglomerates in
Indonesia.. Figure 5a shows concentration, measured as the share of
the four largest mills, and the market share of APP starting from
1980, based on tons of printing and writing paper produced.
Concentration, already high with 67 percent in 1980, increased to
about 90 percent in 2000. Three out of the four largest mills, Tjiwi
Kimia, Pindo Deli and Indah Kiat (Riau), and two smaller mills are
owned by APP and together account for almost 90 percent of total
production. In 2000 its market share decreased a little bit because
Riau Andalan Pulp and Paper (RAPP), brought on line its first PM with
a capacity of 325,000 tpy."
[...]
"5.2.1 Pulp
Currently there are six market pulp mills in Indonesia, of which five
are large scale state-of-the- art pulp plants owned by four Indonesian
conglomerates (APP owns two mills). The remaining mill is a small
facility about I do not have much information."



SOUTH AFRICA

OPERATIONS REPORT
http://www.mondi.co.za/kraft/SD_P8-12.pdf
SilvaCel Mill OPERATIONS
"Located close to the Richards Bay deep-water harbour, the SilvaCel
plant has the capacity to produce in excess of two million tons of
hardwood (eucalyp-tus and wattle) chips a year. All the plant’s chips
are exported to the Pacific Rim, where they are converted to pulp and
paper products. Set on a 19,7 ha site, the plant commenced operations
in October 1992. The woodchip business is focused primarily on meeting
the fibre requirements of the Japanese pulp and paper industry."


OTHER RESOURCES

AsiaPaperMarkets.com
http://www.asiapapermarkets.com/apm/index.html
http://www.asiapapermarkets.com/apm/apm/common/companyreport.jsp
http://www.asiapapermarkets.com/apm/apm/common/technical.jsp 

PAPERAGE.COM
http://www.paperage.com

PULP & PAPER INFORMATION AT BUSINESS.COM
http://www.business.com/directory/industrial_goods_and_services/materials/pulp_and_paper/?partner=about

MARKET PULP ASSOCIATION (Definitions and General Information)
http://www.pppc.org/en/2_0/2_1.html

Forest Industries- forestry, Canada, careers, jobs, forest
products, wood, paper, parks, trees, research, logging,
sawmills, news, environment, professional associations 
http://www.canadian-forests.com/forind.html

cn_chhktap02-5g-e.htm (Information on the China market)
5. Sectors: Forestry - Pulp and Paper 
http://www.infoexport.gc.ca/docs/cn_chhktap02-5g-e.htm

Pulp Manufacturers
http://www.paperonweb.com/plmanf.htm

APRIL
http://www.asiapulppaper.com/
http://www.april.com.sg

India Paper Market
http://www.indiapapermarket.com/pulp.asp

World Rainforst Movement
Globalization of the Pulp and Paper Industry
http://www.wrm.org.uy/plantations/information/Lang1.html

IEAPAP. 2002. Welcome to the IEA Pulp and Paper Website.
http://www.ieapap.com.
Updated 27.6.2002.

United States – Asia Environmental Partnership. 1997. Clean
Technologies in U.S.
Industries: Focus on Pulp and Paper.
http://www.usaep.org/reports/pulp.htm 18.6.2002.

Office of Industrial Technologies. 2001. Forest Products Industry
Profile. 8 pp.
http://www.oit.doe.gov/forest 13.6.2002.

FAO. 2000. Forest Resources Assessment 2000.
http://www.fao.org/forestry/fo/fra/index.jsp 27.3.2002 updated
31.12.2000.

Pulp and Paper Resources on the Web
http://www.paperonweb.com/

The Who's Who of Export Woodchipping
http://rubens.anu.edu.au/student.projects/hemp/woodchipping.html


SOME SEARCH TERMS


://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=hardwood+pulp+paper+manufacturing
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=hardwood+pulp+paper+asia+industry+leader
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=hardwood+chip+export+Asia
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=+Korea+hardwood+pulp+mill+largest
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=Taiwan+hardwood+pulp+mill+largest

Substitute other country names as appropriate.

Search for largest exporter, largest importer, etc., by country.

hlabadie-ga

Clarification of Answer by hlabadie-ga on 29 Jul 2003 14:43 PDT
A correction:

Paperloop.com - leading the pulp, paper, packaging and printing ... 
http://www.paperloop.com/db_area/archive/p_p_mag/1999/9910/news.htm

"Indonesian pulp mill nears completion

PT Tanjungenim Lestari Pulp in southern Sumatra, Indonesia, is
expected to begin trial runs by the end of the year, with commercially
saleable pulp available in first-quarter 2000. Construction began in
February 1998 on the $1.2 billion, one-line 450,000 mtpy bleached
hardwood kraft market pulp mill. It will be the world’s first 100%
acacia-sourced mill. The mill is the largest market pulp project to
come onstream in recent times and the first greenfield market pulp
mill to be built since late 1997."

hlabadie-ga

Clarification of Answer by hlabadie-ga on 30 Jul 2003 04:27 PDT
Due to a computer problem, it may take more than a week for me to
respond to any Requests for Clarification, should there be any. In
that case, please be patient while my computer is being repaired.

Thanks.

hlabadie-ga

Request for Answer Clarification by inquisitive37-ga on 30 Jul 2003 07:11 PDT
Hi hlabadie

I hope your PC recovers. It's going to take me a while to absorb the
information you have provided. It does however seem that the key trail
to follow is GUNNS. They claim to be biggest h/w chip exporter in the
world, 30 year history of trading with the Japanese, just signed with
China’s new pulp and paper mill - Rizhao Pulp & Paper Co, etc. In the
Asian region Gunns customers include Japan, Korea, Indonesia, Taiwan
and now China. What is missing is company names. If you could find out
the names of the companies that Gunns sell to in Japan, Korea,
Indonesia, Taiwan and China (and any other country they deal with)
then I think we can call it a day. Can you find that?

Clarification of Answer by hlabadie-ga on 06 Aug 2003 10:48 PDT
Unfortunately, I am still offline. I am in the local public library
now, and do not have sufficient time online to do the research on
Gunns' customers. If you can wait a while longer, I should be able to
get up and running again within a week. Sorry for the delay, but I am
at the mercy of the warranty service. All of my research for the
question is currently inaccessible. I suspect that the Gunns website
and annual reports would contain the information you seek.

hlabadie-ga

Clarification of Answer by hlabadie-ga on 18 Aug 2003 09:48 PDT
I have only now (Monday, August 18) received my system. I lost a
considerable amount of software in the last crash, but I should be
fully operational by August 19. I shall try to find the additional
information and post a clarification within the week.

Thanks for you patience.

hlabadie-ga

Clarification of Answer by hlabadie-ga on 19 Aug 2003 05:51 PDT
Here is what I have found to date:

As stated in the answer, the five largest woodchip/pulp consumers in
Japan are Nippon Unipac Holding, Oji Paper, Daio Paper, Mitsubishi
Paper Mills, and Hokuetsu Paper Mills. In addition, Gunns has
contracts with Chuetsu and Kishu. It supplies the only hardwood pulp
plant in Korea, owned by Dong Hae (presumably the mill mentioned in
the answer with the capacity of 400,000 tonnes per annum: "There are
three kinds of pulp mills in ROK; namely four ground wood pulp mills,
a thermo-mechanical pulp mill, and a chemical mill. The production
capacity has increased from 35,600 tons in 1960 to 852,000 tons in
1997. The chemical pulp mill with production capacity of 400,000 tons
per year consumes mainly hardwood chips while the other mills consume
pine logs and chips."
FOREST POLICY AND CONSERVATION MOVEMENTS IN THE REPUBLIC OF KOREA
Yeo-Chang Youn
http://www.iges.or.jp/en/fc/phase1/3ws-11-youn.pdf

Exact amounts of chip/pulp consumed by those importers, however, are
not readily available. Nippon, for instance, has an interest in the
WAPRES, which as planned will expand to more than 100,000 hectares of
plantation by 2008. WAPRES has been consistently supplying over
800,000 tonnes per year of chips to Japan since 1976, although it is
not stated if the principal (or only) importer has been Nippon.


1146SummerNews.pdf
http://www.gunns.com.au/plantations/newsletters/1146SummerNews.pdf

"C: The Tamar facility currently processes over 2.4 million tonnes of
wood fibre each year for export and the produce is underwritten by
contracts with Japanese houses including Nippon, Oji, Daio,
Mitsubishi, Chuetsu and Kishu. We also have contracts with Dong Hae –
Korea, Kiani Kertas – Indonesia and in August last year we began
exporting to Rizhao in China. The production capacity of the facility
currently is excess of 3.0 million tonnes per annum and we have two
chipping and loading operations both supported by large and small
chippers, sophisticated jet-slinger loading systems, 3 – 5 flat
screens and four stockpiles with 300,000 tonne capacities."


JAPAN PULP AND PAPER COMPANY LIMITED
The Financial State of Japan's Top Five Paper Manufacturers in 2001
http://www.kamipa.co.jp/eng/news/issue112.html

                                                " unit 100 million yen
                                 Sales                  Ordinary
Income

                                 March March March      MarchMarch
March
                                 2001  2002  2003(est)  2001 2002 
2003
                                                                  
(est)
 Nippon Unipac  non-consolidated  8,556   165        94   506  148    
79
 Holding        consolidated     12,59412,114    12,000   608  285   
370
 
        Nippon  non-consolidated  5,749     -        *|   441    -    
*|
        Paper   consolidated      9,300     -        *|   479    -    
*|

                non-consolidated  2,806     -        *|    65    -    
*|
        Daishowa
        Paper   consolidated      3,293     -         -   129    -    
 -
                non-consolidated  8,167 7,439     6,900   473  165   
280
 Oji Paper
                consolidated     12,52912,037    12,100   581  200   
420
                non-consolidated  3,219 3,087     3,120   204  105   
110
 Daio Paper
                consolidated      3,837 3,715     3,750   295  167   
175
 Mitsubishi     non-consolidated  1,750 1,639     1,650    43   12  
*15
 Paper Mills    consolidated      2,539 2,335     2,390    63    9  
*10
 Hokuetsu Paper non-consolidated  1,287 1,194     1,220   134   80    
60
 Mills          consolidated      1,454 1,361     1,390   150   92    
72
                non-consolidated 22,978     -        *| 1,360    -    
*|
 Total
                consolidated     32,95231,562    31,630 1,697  753 
1,027"


Nippon Unipac Holding News
http://www.nipponunipac.com/e/news/news02031801.html

"Nippon Paper Industries identified Australia as a strategically
important country in the "Treefarm" project, and it has already
planted trees in the states of South Australia, Victoria, and Western
Australia. Particularly in Western Australia, the company has been
driving plantation projects in cooperation with Mitsui & Co., Ltd.,
Toyota Motor Corporation and Osaka Gas Co., Ltd. The equity
participation in WAPRES facilitates the preparation of efficient
facilities for wood chipping and ship loading of the planted trees
from projects. Nippon Paper Industries estimates that it will save
nearly 20% in woodchip production and ship loading costs compared to
the green-field facilities that the company would otherwise have to
build.

As a consequence of the acquisition of WAPRES shares, the original
goals of expanding the area of plantation by more than 100,000
hectares and increasing the ratio of woodchips from planted trees by
more than 70% will be achievable; i.e. by 2008, overseas plantations
will reach approximately 110,000 hectares and the ratio of woodchips
from planted trees will be approximately 80% of the total imported
hardwood chips of Nippon Unipac Holding Group.

Nippon Paper Industries has already been importing woodchips from its
plantation project in South Africa, and will begin to import of
300,000 tons annually from Chile in 2003.

Outline of WA Plantation Resources Pty Ltd.
Established               :in 2000 as a wholly-owned subsidiary of
Marubeni Corporation (originally founded in 1969) Head office         
     :Level 5, BGC Centre, 28 The Esplanade, PERTH 6000
Australia Plantations               :31,000 hectares of eucalyptus
trees (13,000 hectares belong to WAPRES, and it has management and
cutting rights to 18,000 hectares), and 1,000 hectares of Radiata pine
plantations.
Production in nursery     :10,000,000 seedlings per year Woodchip
production and   :a woodchip plant in Manjimup in Western export
services            Australia, and ship loading facilities in the port
of Bunbury. WAPRES has been exporting 800,000 to 850,000 tons of
eucalyptus woodchips to Japan annually since 1976."



Gunns' exports to Rizhao SSYMB Pulp & Paper Co (Rizhao) are rather
insignificant, only 51,000 tonnes annually (one shipload, in fact),
except that they provide a toehold position in the market. The US
company International Paper has already signed an agreement with
Rizhao to expand the pulp facilities, which might indicate that Gunns
must compete to expand its small percentage of the Chinese market.

hlabadie-ga
inquisitive37-ga rated this answer:4 out of 5 stars

Comments  
Subject: Re: Demand: Supply for hardwood timber for paper manufacturing
From: hlabadie-ga on 25 Jul 2003 11:28 PDT
 
Without purchasing a report from a proprietary source, it does not
seem practical to assign market share figures to companies. Countries
are easier to rank. China and Japan are the two countries that import
the most pulp/chips. Australia is the single largest exporter of chips
to Japan. (Gunns is the leader among Australian companies, but that
particular information seems exceptional.) The US is a leading
exporter of chips and pulp, but its share of the market is declining.

I'm not sure that the level of detail that you request can be
provided.

hlabadie-ga

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