Saturday, November 20, 2010

PAPER PLUS-2010-The Paper Show-at Coimbatore-Tamil Nadu

WELCOME
TO
PAPER PLULS
 
BY
SREE OHM SERVICES

Video-Stories in Paper Exhibition

PAPER PLUS-2010-
The Paper Show at Coimbatore, Tamil Nadu
For Registration: www.paperplus.in

Welcome to Paper+ is the international trade fair and key meeting ground for the buyers and suppliers of pulp, paper and conversion industries. After the highly successful history of Paperex series of international events for paper and related industries, Paper+ aims to provide the regional business platform with international presence. The event is another effort to serve the Indian pulp, paper and all related industries, presenting a series of opportunities, such as:


A platform to launch new products, technology and services


Establishment of a manufacturing base in India


Display of company’s latest machinery and technologies for modernising the existing paper mills


A chance to identify alternate suppliers of machinery, equipments and spares


Finding availability of raw materials and identifying a source of investments & funding


Face to face interaction with industry players


Supply of professionals and skilled man power


Identifying new import and export destination


Brand building amongst industry players and end user
 
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Video-About Paper Mill Consulting Engineer
Indian Paper Industry

The Indian Paper Industry is among the top 15 global players. India is the fastest growing market for paper globally and produces a wide range of paper and paper board with more than 700 paper units. While domestic production of paper and cardboard is around 7.6 million tons, the paper consumption per capita has reached 8.3 kg (around 8.86 million tons including newsprint). The South Asian average consumption per capita is 11 kg and world average is 53 kg.


Growth Indicator :


Over 85 % production through small and mid size paper mills


An increase in consumption by 1 kg per capita has increased demand of 10 lakh tones


Estimated demands are 15 million tons by 2015 and 20 million tons by 2020

  
 
 
European paper industry is at the core of green growth

European pulp and paper industry has concluded its twelvth European Paper Week announcing that it is well prepared to play an important part in the upcoming bio-economy, which is one main political priority of the EU. “We are at the core of green growth. The paper industry is perfectly built to support the new bio-economy through it’s knowledge of renewable raw materials, recycling , bio-energy and use of by-products. Paper is part of the solution and our discussions over the last three days have shown how we can support green growth.” said Teresa Presas, Managing Director of
CEPI.

The three-day event brought together over 330 people from the pulp and paper industry, related organisations as well as different institutions and provides a high-level platform for discussion.



At a moment when the European Commission is presenting its flagship initiatives to implement the EU2020 strategy for smart, sustainable and inclusive growth, the CEPI Annual Meeting provided the opportunity to address some policy views and industry initiatives that could contribute to making green growth a reality.

A panel involving industry representatives from Europe and Canada, as well as Tony Long head of WWF EU Policy Office, and Lars Kjellberg, a paper analyst from Credit Suisse, debated the transformation of the pulp and paper industry and its potential to innovate, from different stakeholder angles.


The key plenary event held during the European Paper Week, saw the contributions from European Parliamentarian Herbert Reul, as well as from Mattia Pellegrini, member of the Cabinet of European Commission Vice President Antonio Tajani, responsible for Industry and Entrepreneurship. They outlined the contents of the new industrial policy, the innovation union as well as the raw materials strategy. Berry Wiersum, Chairman of CEPI said: ”We welcome the European Commission proposal for an integrated industrial policy that puts competitiveness at centre stage. We look forward to seeing it implemented in member states. Our sector is ready to deliver”.


The networking event of the year within the pulp and paper industry took place in Brussels from 16-18 November. This year the event included four interactive seminars on a wide range of topics such as raw materials, climate policy, recycling and transport, which will help shape the work programme for CEPI over the coming year.

  

Video-Abitibi-Bowater Bankruptcy
Paper Industry: AFTER THE FALL

The flurry of bankruptcy filings during the past few years has been a source of pain for the North American paper industry. However, the significant capacity reductions many forest products companies have taken during the past year have resulted in a slimmer industry that could see better markets going forward.



In the past several years, paper companies such as AbitibiBowater, The Newark Group, Caraustar Industries, Smurfit-Stone, Blue Heron Paper and White Birch have filed for bankruptcy protection. In statements that accompanied their initial filings, nearly each company cited the difficult economic environment as a factor. The collapse in the global economy in late 2008 and early 2009 magnified many of the problems that these companies already faced.


While the companies that have exited bankruptcy protection say they are economically healthier, the paper industry remains in the midst of a shake-up. While bankruptcy may have allowed some of these companies to reduce their debt obligations, they are still confronted by a challenging environment.

Several forest products analysts say the industry is going through profound structural changes. While 2010 may have been a year of price stabilization for many paper grades, a number of paper grades are experiencing secular declines.


To survive and even thrive in this environment, paper companies are realizing they must change their operations. Several have invested in new equipment that will allow more variety in the finished products they produce.


THE CHALLENGE FOR NEWSPRINT
It seems that newsprint has been hit harder than any other paper grade. Statistics show that newsprint demand continues to contract throughout North America. According to the Audit Bureau of Circulations, based in Arlington Heights, Ill., average daily newspaper circulation declined 5 percent in the six months that ended Sept. 30, 2010, compared with the same period a year earlier. That’s better than the 8.7 percent drop seen in the previous reporting period, which ran from October 2009 to March 2010. The last time the reduction in circulation was lower was from April 2008 to September 2008, when circulation fell 4.6 percent.

With newspaper publishers constrained by declining readership and advertising prospects, AbitibiBowater, as well as a number of other newsprint producers such as White Birch Paper and Blue Heron Paper, have been forced to cut capacity in an effort to bring supply and demand into balance. However, even with significant capacity reductions, all of these companies still went on to file for bankruptcy protection.


AbitibiBowater filed for bankruptcy protection April 16, 2009. Since the filing, the company has jettisoned facilities, closed plants and sold off assets as well as made adjustments to its production capacity, especially for newsprint.


In total, AbitibiBowater has streamlined its asset portfolio to focus on top-performing facilities by closing or idling 3.4 million metric tons of paper capacity. The company has moved from an overall production capacity of 10.4 million metric tons to 7 million metric tons since 2007. During this period, AbitibiBowater has sold aggregate assets and land for total proceeds of more than $980 million.


Kevin Mason, managing director of forest products for Equity Research Associates, based in British Columbia, says he sees big struggles ahead for many segments of the paper industry. Newsprint markets, he says, are shrinking, though there has been a subtle pause this year. “It is not as bad as last year.”


Xavier Van Chau, director, communications and corporate social responsibility for AbitibiBowater, says that while North American newsprint demand continues to decline, the newsprint industry is stabilizing. “The reality is that there will be maturation in the newsprint market,” he says.


Van Chau says the company’s reduction in newsprint capacity is just one step AbitibiBowater is taking. “We are looking for opportunities to diversify our operations,” he adds.

While AbitibiBowater says it expects to be out of bankruptcy protection by the end of this year, Mason points out that many of the company’s problems are structural in nature. The biggest problem is that many of AbitibiBowater’s mills are high-cost operations that are difficult to operate profitably.


As challenging as the newsprint and groundwood paper markets seem, a report by Paul Quinn, a forest products analyst based in Vancouver with RBC Capital Markets, the corporate and investment banking arm of Royal Bank of Canada, says groundwood paper and newsprint have showed marketed improvement through the second and third quarter of 2010.


“Newsprint prices have continued on their upward path, rising another 7 percent from [the] second quarter to $637 per metric ton, bringing the year-over-year improvement to a very strong 43 percent,” Quinn writes in a report to institutional investors in October. “The rise from the trough of $435 per metric ton in August last year (2009) has been driven by a combination of capacity closures and a 64 percent increase in offshore exports. Year to date, eastern North American newsprint has averaged $595 per metric ton, somewhat below our full year forecast of $605 per metric ton.” He adds, “We expect prices will continue to rise through the end of the year as market leader AbitibiBowater emerges from creditor protection and make[s] a concerted effort to hold the line on pricing.”


RBC forecasts newsprint prices to reach $665 per metric ton in 2011.


With the long-term outlook for newsprint in North America challenging at best, AbitibiBowater is strengthening its export of that product. In fact, Van Chau says, “Growing our export of newsprint is a strategic focus for the company. As it currently stands, approximately 52 percent of our manufactured newsprint is sold overseas, and this percentage will continue to increase.”


OPPORTUNITIES FOR CONTAINERBOARD
Smurfit-Stone Container Corp., headquartered in Chicago and Creve Coeur, Mo., is a manufacturer of paperboard and paper-based packaging that also faces economic challenges. The company entered bankruptcy protection as the global economy bottomed out in early 2009.

During its stay in Chapter 11, Smurfit-Stone took steps to reduce its costs, most prominently closing two board mills. The company’s mill in Ontonagon, Mich., had a run capacity of 280,000 tons of corrugated medium per year, while the company’s Missoula, Mont., mill produced 620,000 tons of linerboard per year. When shuttering the mills, Smurfit Stone said they were high-cost plants that did not provide adequate returns long term.
When the company first announced its bankruptcy filing early in 2009, Patrick Moore, Smurfit-Stone chairman and CEO, said, “Over the past decade, we built one of North America’s premier containerboard and packaging companies. But, our financial performance has not reflected the full potential of our earnings power due to higher cost operations and burdensome debt levels dating back to the original formation of the company. As a result of our three-year transformation program, we have been focused on improving our operating performance and our operations are now well-invested and far more cost effective.”
He continued, “Yet, the acceleration of the unprecedented global economic recession has weakened demand for packaging, and the frozen credit markets have prevented an out-of-court refinancing of our capital structure.”
After 17 months, Smurfit-Stone emerged from bankruptcy June 30, 2010.
Also facing the challenges of the slumping paper industry is Blue Heron Paper Co., a small company in Oregon. The mill filed for bankruptcy protection in late 2009 and switched production away from the low-cost newsprint to tissue and towel products. In a report filed during its bankruptcy, Blue Heron says it planned to eliminate 3,000 tons per month of the lowest profit-yield newsprint and to focus on “sales of toweling and other specialty paper products.”


A CAUSE FOR OPTIMISM
Despite the challenging environment for the forest products industry, positive signals can be seen. According to a recent report by Standard & Poor’s (S&P), the industry has a slightly positive outlook going forward based on:
•A slow, gradual economic recovery in the United States;


•A small increase in consumer spending and higher residential construction spending;


•Higher prices for paper and paperboard;


•Slightly higher sales volumes and average prices for wood products; and


•Relatively stable raw material prices that remain below the peak of 2008.


“We believe EBITDA (earnings before interest, taxes, depreciation and amortization) and funds from operations should be higher this year than they were in 2009 (excluding the black liquor tax credit) across the sector,” the S&P report notes. /p>


With this in mind, barring a collapse in the economic recovery, paper companies should be able to push through multiple price increases, see better demand and have high capacity utilization.


However, Mason says he sees prices for a range of paper grades reaching a ceiling. While acknowledging that prices have improved, he says, “Prices are coming under pressure.”


Finally, Asian demand for recovered fiber represents a wild card for the North American paper industry, especially for bulk grades such as old corrugated containers and old newspapers. Steadily increasing orders from Asian mills will exert pricing pressure on the market. North American mills could be put in a tough situation if they cannot push through price increases on their finished products while paying significantly more for recovered fiber.



 


Video-Indian Packaging Industry Growth


 Paper Industry has a Market Value of about $700M per Year


RECENT MARKET RESEARCH REVEALS THE GCC PAPER INDUSTRY HAS A MARKET VALUE OF ABOUT $700M PER YEAR. AT A BREAKDOWN, UAE ACCOUNTS FOR OVER $400M OF THIS, WITH SAUDI ARABIA ACCOUNTING FOR ANOTHER $220M, WHILE KUWAIT, QATAR, BAHRAIN AND OMAN ACCOUNT FOR APPROXIMATELY $65M BETWEEN THEM.


Having identified this untapped market Epoc Messe Frankfurt has recently announced the launch of a new exhibition to its portfolio - Paperworld Middle East. The latest addition to Dubai's calendar of exhibitions, Paperworld Middle East has already confirmed several key industry players as launch partners for its inaugural event which will take place from 7 to 9, March 2011, at the Dubai International Convention and Exhibition Centre.

German stationery brand Pelikan, German manufacturers of writing instruments LAMY and Schneider, along with leading worldwide supplier of innovative cutting and measuring products Acme United Europe, greeting card manufacturer Hallmark, and school bags and stationery manufacturer Paxos, have partnered with Paperworld Middle East for the launch of its first edition in the region.

Furthermore, local manufacturer Farook International Stationery (FIS), established in Dubai back in 1980, will also present their products at the show. Having 3 manufacturing plants in the UAE, they export their wide range of stationery products to over 80 countries worldwide and are among the pioneers in the Middle East stationery industry. Other local manufacturers include Dubai Library Distributors and Capital Envelopes.


Mr. Ahmed Pauwels, Chief Executive Officer at Epoc Messe Frankfurt, organiser of Paperworld Middle East commented: "Having the right partners is a crucial element for launching an exhibition and we are greatful of the support from these key industry players for our inaugural event in March. Having done much research into the paper industry we identified a niche in the market and decided to bring this branded exhibition to the Middle East region."


He added: "Having the likes of international names such as Pelikan, LAMY, Schneider, Acme United Europe, Hallmark, Paxos and local company Farook supporting us as launch partners shows that they too have confidence that there is space in the market for this event. We value this vote of confidence and the team is now working hard to execute a highly focused and successful first time event in March."


The internationally recognised launch partners are key names in their specialised fields and are set to attract many other brands and manufacturers to exhibit at the event, as well as be a key pull for trade visitors.


Ms Monica Kubik, Senior Show Manager, Paperworld Middle East said: "We were very specific with the brands that came on board as launch partners. These are well established and highly reputed brands and are market leaders in their field. They are companies that focus on high quality and this is in line with our own aim to deliver a focused and high quality event. We are very excited about the show's launch in March which, with the help of our partners, is set to be a great success."


Paperworld Middle East will be co-located with Festivalworld Middle East and Playworld Middle East. The three exhibitions are new to Dubai's exhibition portfolio. Exhibitors and visitors can benefit from the synergies between the three trade fairs which share similar visitor profiles due to the products which will be featured.

Paperworld Middle East is a new addition to the Paperworld brand family and a strong name to the region. Besides running the leading international trade fair for paper, office supplies and stationery in Frankfurt, the Paperworld global network also incorporates Paperworld China, which has been running in Shanghai since 2005.


Paperworld Middle East will be the first of its kind show to be introduced to Dubai and will focus on the same product groups as the well established Paperworld in Frankfurt, such as office supplies, school articles, wrapping, office paper and films, gift articles, household paper and films and greeting cards. It will furthermore feature a separate section on the remanufacturing and imaging industry.