PSPD has been organizing suppliers meets in the past, but this time over 450 suppliers, the largest contingent ever from across the globe, have congregated at Fortune Select Manohar Hotel Hyderabad for a day long interaction with PSPD’s Technical, Commercial and Finance teams. This is a unique achievement by ITC PSPD as no other paper company in India has ever done it.

Several interesting issues were presented related to Global and Indian paper industry. Economic conditions in China, Europe and USA and impact of the same on paper industry were discussed. Technological developments in various aspects of papermaking were presented by experts from global leaders like BASF, SKF and NALCO etc.

Mr. Sanjay Singh, Divisional Chief Executive of PSPD, gave an overview of PSPD’s growth plans and what is expected of the supply chain partners in implementing those plans.

A message sent by ITC Director Mr. Pradeep Dhobale addressing the suppliers was read out. He sought the support of the supply chain associates to make ITC PSPD India’s largest paper company and thanked them for their support extended so far in providing quality inputs and services.

Unique feature of this Supplier Interface was that they have tried to cover all the partners in supply chain like CNF agents, Transporters, Shipping companies, Material Handling contractors, Ancillary Industries exclusively operating for PSPD, in addition to all key input suppliers.

The project investment will be approximately EUR 1.6 billion. Construction at the industrial site will commence when specific preconditions have been fulfilled, which is expected to be in the second half of 2012. Production is scheduled to start in the fourth quarter of 2014. The investment will significantly support Stora Enso moving towards company’s 13% ROCE target.

The project will be financed through a combination of debt and equity on an approximately 60/40 basis. The debt financing is expected to be a mix of export credit agency, multilateral and commercial bank debt.

“Today we are taking another significant step in transforming Stora Enso into a global renewable materials company. We already have a globally leading position in renewable fibre-based packaging boards. We will now invest in a world-class integrated mill based on locally grown renewable materials for the benefit of local Chinese consumers in the fastest-growing market. Everything we do will be based on best-in-class technologies, environmental standards and sustainability practices – together with the local partners and communities” says Stora Enso CEO Jouko Karvinen.

Jouko Karvinen - CEO, Stora Enso

Growth together with customers – strong growth forecast in fibre-based packaging in China

The fibre-based liquid packaging board segment is one of Stora Enso’s strategic focus areas and this investment is consistent with the Group’s announced strategic guidelines. Through this investment, Stora Enso seeks to benefit from the forecast future growth in demand for fibre-based packaging solutions for food in China, which is forecast by several researchers to grow at a compound annual rate of over 10% during the next ten years. This investment will also enable Stora Enso to provide excellent service with cost-competitive, locally produced high quality liquid packaging boards on a regional basis for its global key customers that are already well established in China.

Stora Enso’s present operations in China

Stora Enso has been establishing plantations in Guangxi since 2002. The Group currently holds approximately 90,000 hectares, and is to establish sustainable eucalyptus plantations with an effective fibre base of 120,000 hectares to support the new pulp mill in Guangxi. The Group’s other operations in China include a 245,000 tonnes per year coated fine paper mill in Suzhou, a 170,000 tons per year uncoated magazine paper mill at Dawang, two core factories, five sales offices and the newly acquired majority shareholding in Inpac International, a packaging company with production operations in China and India, and service operations in Korea. The total number of employees in China is currently about 4 500.

With overall volumes continuing to remain some way below pre-crisis levels it is estimated that CEPI member countries produced around 95 million tons of paper and board in 2011. Paper production had reached 103 million tons in 2007 and decreased by 13% between 2007 and 2009 before increasing by over 8% in 2010.

European pulp & paper production level remains slightly below the average European manufacturing industry performance but still above other energy-intensive sectors.

Based on estimates it would appear that the performance of the CEPI countries in total during 2011 is similar to that of most of the other major paper producing regions of the world with the exception of South Korea and China, which have performed better.

It is estimated that world paper production has recorded a very limited growth in 2011, around 0.5%.

Through its 19 member countries (17 European Union members plus Norway and Switzerland), CEPI represents some 550 pulp, paper and board producing companies across Europe, ranging from small and medium sized companies to multi-nationals, and 1000 paper mills. Together they represent 25% of world production.

As part of this agreement, HCL will provide data center, end user support, network services and professional IT services to UPM. HCL will also set up a data center in Finland and strengthen its existing Espoo Delivery Center to provide the services.

UPM CIO Turkka Keskinen said, “The agreement enables UPM IT to offer unified and cost effective IT infra services to UPM businesses. With this engagement we aim to increase scalability and flexibility as well as ensure access to world class competences and best practices. In the future, UPM IT focuses on strategy and governance, business-IT development, application management as well as demand and service management.”

Toscotec’s scope of delivery for each of the new lines includes MODULO Plus ES crescent former tissue machine with single-layer headbox, double press configuration, Steel Yankee Dryer (TT SYD 12FT), steam and condensate system, control and machine drives systems. Mills services are also included in the order. Machine speed will be up to 1300 mpm with a net trim width of 2700 mm.

All the machines will come on stream between the 3rd quarter of 2012 and 1st half of 2013, Toscotec said.

Vinda is a leading company in the Chinese tissue paper industry. The company has seven production bases in China with a total annual production capacity of 470,000 tons.

International Paper Chairman and CEO John Faraci said, “We are very pleased to have completed this compelling transaction. The combination of International Paper and Temple-Inland strengthens our North American packaging business and enhances our ability to generate cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we successfully integrate our businesses and create an even stronger company with substantial benefits for our customers, employees and shareholders.”

The investment value of the construction project was close to EUR 20 million. The new facility is a milestone in Metso’s 42-year history in Brazil. “Brazil, along with China, is one of the countries in which Metso is focusing its investments. The Araucária investment will be continued by further increasing the capacity and capabilities of the facilities,” says Celso Tacla, Area President, South America, Pulp, Paper and Power, Metso.

On a land area of 60,000 sqm, of which 10,000 sqm represent the built area, the Araucária plant will generate 150 new jobs and some indirect jobs. Together with the staff transferred from the earlier location in Curitiba, the total number of personnel at the Araucária plant will rise to 500 when the operation reaches its full capacity.

In addition to the production and administrative facilities in Araucária and eight other locations in Brazil, Metso has offices in Chile, Peru and Argentina.

China’s booming economy, rising middle-class and the trend towards urbanisation puts China on track to become one of the fastest growing markets for liquid dairy consumption globally. According to Tetra Pak’s 2011 Dairy Index, China’s demand for liquid dairy products will surge by 40 per cent, from 25 billion litres in 2009 to 35 billion litres in 2013. Forecasting growth, Tetra Pak has invested heavily to increase on-site capabilities for customers, including enhanced support for new product development and market exploration, in addition to increased production capacity and a richer portfolio of services.

“Tetra Pak’s Hohhot converting plant has become one of the most technologically advanced and productive Tetra Pak production facilities both in China and globally,” said Tetra Pak China President, Steve Yin. “By investing at Hohhot, we aim to deliver maximum value as customers seek to identify and respond to new liquid dairy opportunities in this booming market.”

Metso’s delivery comprised a complete containerboard line from headboxes to reel including a 3-ply multi-Fourdrinier forming section with a ValFormer top forming unit. The delivery also included a ValPress press section equipped with two straight nips, a dryer section with single- and double-fabric dryer groups, an OptiHard precalender, a ValSizer film size press, coating sections with two ValCoat Jet blade coating stations and an OptiLayer curtain coating station, a ValSoft soft calender as well as a new type of a ValReel reel. The comprehensive Metso automation system comprises process, machine and quality controls with headbox and moisturizer profilers and retention analyzers.

The daily production capacity of the PM 3 is approximately 1,900 tons of coated and uncoated white top testliner in the basis weight range of 130-280 gsm, mainly without virgin fiber.

Ji’An Group Co., Ltd. currently produces containerboard on four machines of which three are Metso-supplied machines, in addition to the PM 3, on the PM 1 started up in 2008 and on the PM 2 started up in 2006. The company’s annual production capacity is around 1,650,000 tons.

The project has been financed by the company Dentas Ambalaj that is getting the credit with the help of Czech banks (ČSOB) and using the EGAP insurance. PAPCEL does the machine-technological part of the stock preparation line, building part of the PM completion (new SPL hall and the PM construction part will be provided by the company Dentas). The SPL project documentation will be delivered by Erma-Elan company, PM project is provided by Dentas.

In this stage of the project execution, the company Dentas Ambalaj provides the whole building part of the project.

The project is expected to be completed by 02/2013.