The pulp industry is focused on the South American-Asian axis
The global pulp market has been reorganized in the past ten years. Production has declined in the traditionally large producing continent of North America.
In Europe and Asia, production volumes have remained more or less unchanged, while new production capacity, especially for short-fiber pulp, has been increasingly built in Brazil and now also in Uruguay in recent years.
"It is important for the pulp industry to ensure access to raw materials. Investments are directed to where wood grows quickly and the infrastructure is functional," summarizes the CEO. Suvi Anttila From Indufor Oy, which provides expert services in forestry and the forestry industry.
Analysis: market re-division
Asia reached its current pulp production level at the end of the last millennium. China and Indonesia have risen to the top ten pulp producers in the world. Demand for short-fiber pulp is growing the fastest in the world.
"With production growing rapidly, sustainable development is being tested, and international attention is increasingly focused on new players. China has also established eucalyptus plantations. In addition, China is buying a lot of short-fiber pulp from South America for use in fine paper production, as its consumption is growing faster than domestic production," says Suvi Anttila, CEO of Indufor Oy.
The future depends on competitiveness
Among Western European countries, pulp capacity is concentrated in Finland and Sweden, where softwood pulp is mainly produced. In 2009, Finland ranked sixth in world pulp production statistics.
– Finnish forest companies are pioneers in their fields in many ways. The future of the forest industry in Finland depends on competitiveness, which has been praised in the public, says Suvi Anttila, CEO of Indufor Oy. Indufor offers expert services in the forestry and forest industry.
– Concrete actions are now needed, for example in energy tax solutions and in securing the supply of wood and a reasonable price level. The obstacles to success are well known, decisions are running out, and the forest sector in general would not be harmed if the pace were increased a little, he adds with a smile.
In your opinion, will pulp production in Finland end at some point in time and be completely replaced by faster-growing forests?
– It won't end for a long time, if ever. The raw material base of the Finnish forest naturally leads to long-fibre pulp, the packaging industry that uses it as a raw material, after sensible energy solutions, to good-quality mechanical pulp and through that to the top of the magazine paper sector and the high-quality wood products industry. So a very pragmatic approach would seem to work, Anttila replies.
– New products will eventually strengthen the industry based on wood raw materials, but while waiting for them, we must ensure that the sector provides employment and livelihood in basic production on a large scale and for a long time.
South America is booming
Finnish companies are fully involved in pulp production on the South American continent, thanks to major investments by UPM and Stora Enso. Short-fiber pulp is needed especially for fine and hygiene paper production. The cycle time of eucalyptus from planting to harvesting is about seven years, but in the best cases, according to Anttila, the cycle time has been shortened to even five years.
Tree plantations have been established in Brazil for decades and natural forests are no longer being
touch. Argentina, Colombia and Venezuela, among others, are also suitable for plantation forests, but
The growth of pulp investments in these countries is still a question mark.
– In South America, in addition to environmental issues, the social aspects of operations are also a challenge.
effects. Land suitable for eucalyptus cultivation would have many other uses and not
"Under no circumstances should the rights of local people be trampled upon," Anttila explains.
Well-known international pulp producers work in collaboration with environmental organizations. They are committed to the principles of sustainable development, and the same is required of the entire wood supply chain.
