25 ideas of PAP-FOR 2013 forum

Following the results of PAP-FOR 2013 forum held on September 26 in Skolkovo, WhatWood prepared traditional summing-up material with the most interesting quotes from the conference.

Alexey Grigoriev, expert of the analytic centre of the Russian Government:

“Now is the time of globalization, sea shipping rates have fallen, so Brazilian pulp in the port of Hamburg can now be cheaper than Finnish one”.

“The period of extensive development of the pulp and paper industry in Scandinavian taiga has ended”.

“China is not that good as a pulp & paper market: there is a large amount of own waste paper, imported pulp has a share of only 14%, and the prices are low. Moreover, there is high competition – South American countries will actively compete for China in the coming years”.

“Export of one million tonnes of pulp to China will bring $100-150 million less than in other markets”.

“What should Russia do in this case? It should develop consumer products, like packaging and sanitary papers, and fight for the domestic market. It is desirable to avoid conflicts within the industry, as is now happening in the oil and gas sector, and promote the idea of green economy”.

Evgeny Shvarts, environmental policy director, WWF Russia:

“Consumption of pulp and paper products per capita in Russia has grown from 40 kg in 2004 to 54 kg in 2010”.

“Russian pulp and paper industry should establish wood plantations of the new generation for raw material supply”.

Alexander Mariev, acting head of the Forest Department, Ministry of Nature:

“We have taken every effort to make the State Policy in the Forestry Sector a very simple document with clear structure: it has three objectives and 10 principles. For the first time not the administrative approach, but an economic one is taken as fundamental. Soon the text of the document will be published on the website of the government”.

“Reduction of subsidies to the forest industry does not correspond to the Forestry Policy, and we continue to convince the Ministry of Industry and Trade that this step should not be made”.

Kenneth Munson, Global Director of Forestry Projects, EMEA, International Paper:

“Russia has 30% of all commercially available softwood forests in the world”.

“I can’t tell you how glad I am about the news that Russia has finally accepted Forestry Policy. With the introduction of intensive, sustainable forestry timber production per unit area will increase”.

Natalia Pinyagina, GR Director, Arkhangelsk pulp and paper mill:

“Sustainable forest use requires sustainable management and planning, which is absent in Russia”.

Maxim Pisarev, Commercial Director, Investlesprom holding:

“Currently, 63% of industrial paper packaging falls within the construction materials sector, about 13% within food products, 10% within animal feed, 8% within chemistry. Development of the construction sector is a key drive of consumption of paper sacks in emerging markets. In North America and Japan demand for paper sacks for food and animal feed is dominating, the latter being a fast-growing niche”.

“In developed countries, green paper packaging is in high demand. However, the financial crisis and slowdown of development in almost all industry branches have an effect on total consumption of paper packaging. Growth in demand remains in the UK, Ireland, Serbia, Ukraine, as well as on the domestic market, in Russia”.

“The share of Investlesprom on the world market of paper sacks is 18% and the company plans to expand its presence”.

“EBITDA of Investlesprom has grown in the past year from 1.5 to 2.4 billion roubles, this year we plan to reach the target of 2.8 billion roubles”.

“I think we will see the continuation of the “Polar Bear” investment project after the completion of Investlesprom sale”.

Anatoly Safronov, Deputy General Director, SFT Group:

“It is essential to abolish VAT and personal income tax for the collection of wastepaper”.

Jaakko Ekman, PhD in Applied Microbiology, Kemira:

“Performic acid may be used in chlorine-free water disinfection technology, but unfortunately, it is economically non-viable for pulp bleaching”.

Natalia Malashenko, Director of corporate communications, UPM:

“The Economist has been printed on UPM paper for many years, and during this time, footprint of printing paper for it has decreased by 90%”.

“We have reduced the environmental impact on our French factory, having shifted from truck delivery to river transportation”.

Dmitry Koristashevsky, Key Account Manager, Man Diesel and Turbo Russia Ltd:

“Turbo vacuum machine has advantages over water ring pumps. The case of Arkhangelsk PPM shows visible return on investment: vacuum systems can save millions of roubles per year on electricity, water and heat generation”.

Dmitry Dulkin, General Director, OBF group:

“Water is the second most important component and the first in terms of volume in the pulp and paper industry. PPI is the second largest consumer of water in Europe”.

“Water consumption reduction and improved control of wastewater reduces the environmental footprint. Closure of water circuit is a more difficult way to reduce the impact, it needs careful consideration”.

“There are unreasonably hard water treatment standards in Russia, which are several times harsher than European. According to our estimates, four indicators are currently unreachable technically”.