Selected articles on industrial development in emerging economies

South Africa: Sappi plans to combat economic downturn

Paper and pulp group Sappi claims it would ride out the global economic downturn, basing its confidence on a raft of strategies planned to ensure that it remains a dominant player in the industry. Strategies include better cash flow, capital expenditure and working capital management, improving the group’s balance sheet structure and focusing on a steady improvement of operating performance.

BusinessDay

Indian paper sector: Outlook negative for long term

The paper sector has traditionally been the laggard in the commodities pack. However, the sector has seen a sharp reversal in fortunes in the September 2008 quarter with double-digit growth in topline and positive growth in net profit, backed by higher paper prices and buoyant demand, despite an increase on all cost fronts.

The Economic Times

Indonesia: Government team to work on U.S. rules for wood certification

The government has set up a team to address issues in relation to certification requirements imposed by the United States on wood-based products originating from Indonesia. In response to the United States' new regulation, the team will identify all new procedures and possible constraints under the new regulations in order to help local industries and perhaps even seek clarification from the U.S. government.

The Jakarta Post

China’s wood imports and exports see slower growth in 2008

The foreign trade of China’s major wood products has continued to grow in the first three quarters of 2008. However, the growth rate has fallen dramatically when compared to 2007, due to the global economic slowdown. The total value of China’s major wood products imports and exports during the first three quarters of 2008 rose 16% to USD49.3 billion, dropping 15.6 percentage points when compared to the same period in 2007. The trade surplus for wood products reached about USD6.3 billion, dropping 7.6 percentage points from the same period in 2007.

FORDAQ

India: Wood scarcity hurting paper sector

Paper demand in India is increasing nearly 8% annually and supply has not been able to keep pace. Globally also paper capacity is shrinking. In India no greenfield wood based capacity has been added for more than two decades. No MNC or international paper maker has set up paper making capacity in India though other BRIC nations — Brazil, Russia and China — have attracted huge investments in this sector.

The Economic Times

South Africa: Sappi to buy four M-Real mills for 750 million Euros

Sappi Ltd., the world's largest producer of glossy paper, agreed to buy four paper mills from Finland's M-real Oyj for 750 million euros ($1.1 billion) in the biggest European deal in a year.

Bloomberg.com

Russian log export taxes will raise unemployment in Russia

The Russian Government is trying to assist development of its forest industry by adding export taxes on logs, thereby limiting competition by foreign companies for the Russian timber. But, will the Russian forest industry be able to expand the production capacity and process this wood domestically? Unfortunately, the short answer to this question is: No.

NEWSDESK

India: It is time for the paper industry to go global

India has the potential to emerge as a manufacturing hub for paper much as it is one for automobiles, auto-parts, and pharmaceuticals. Yet global MNCs and investors have overlooked Indian paper sector for long and have preferred other BRIC (Brazil, Russia, India, China) nations. The time is ripe now for them to explore opportunities in India.

The Hindu Business Line

Vietnam: Paper production rolls out as pressing issue

Vietnam is practising an exercise in loss, importing expensive pulp and paper products while exporting wood at low prices. The paradox has been prolonged because most projects to process pulp and paper in the country have been postponed, while local demand continued to rise. Although many investors have poured money into paper mills, they have not invested in producing the raw materials necessary for production. Delayed profits, low productivity and forest fire risks hinder investors from looking into this field.

Viet Nam News

India: Ballarpur to Invest USD 1 billion to raise paper output

Ballarpur Industries Ltd., India's biggest paper maker, plans to invest about USD 1 billion in overseas acquisitions and expanding plants at home to quadruple capacity in five years. The paper maker will double capacity to 1 million tons next year and increase to 2 million tons by 2013.

Bloomberg.com

Thailand: Phoenix eyes 50% growth after capacity boost

Phoenix Pulp and Paper has targeted revenue growth of 50 per cent this year, from Bt4 billion to Bt6 billion, following an increase in its capacity to produce uncoated paper. The company makes wood pulp from eucalyptus trees, and paper produced from the pulp is used mainly to supply the domestic market. However, about 20 per cent of its uncoated paper is exported.

The Nation

India: JK Paper to focus on packaging board

Riding on demand from sectors like media, manufacturing, retail and FMCG, JK Paper is upbeat on the growth of the paper industry. The company said it is consolidating its presence in the packaging board segment, one of the fastest growing categories.

Business Line

Swedish Trade Minister urges Russia to stop raising tariffs on wood exports

Russia increased its tariffs on wood exports in June 2007 and April this year, and has planned a third increase on Jan. 1, 2009. The tariffs have upset Sweden and Finland, home to several of the largest paper and pulp producers in Europe.

iht.com

Russia: UPM and Sveza to invest EUR 1.0 billion in pulp venture

UPM-Kymmene, Europe's second-largest papermaker, and Sveza Group, Russia's largest plywood producer, plan to invest 1 billion euros ($1.56 billion) in a joint venture to produce pulp, lumber and wood panels in Russia.

TheMoscowTimes.com

Wood fiber shortage reduces pulp production in Indonesia

The pulpmills in Indonesia are struggling to supply their mills with wood fiber because the Indonesian police have been clamping down on illegal logging during 2007.

NEWSDESK

EU executive says regrets Russian wood duty hike

The European Commission said on Tuesday it regretted Russia's decision to raise export duties for wood and that the move may harm the European Union's timber industry.

Reuters.com

Russian pulp hurts Stora, rewards International Paper

In the new world order for pulp, Finland's Stora Enso is on the wrong side of Russia. That's making winners out of Memphis, Tennessee-based International Paper and Mondi of Johannesburg.

Bloomberg.com

India: Printing paper to cost less

Prices of writing and printing paper are likely to come down by Rs 1,500 to Rs 2,000 per tonne after Chidambaram announced a 4 per cent excise duty cut on mills using non-conventional inputs.

The Telegraph

Taiwan: Local paper manufacturers to expand in Vietnam

Yuen Foong Yu Paper Manufacturing Co. Ltd. and Cheng Loong Corp., two of Taiwan's leading paper manufacturers, are poised to become the dominant producers of paper containers in Vietnam. Both companies are going all-out to increase production capacity in the Southeast Asian country.

Taiwan Journal