Japan disaster recovery needs B.C.’s lumber
April 8, 2011 - Jennifer Smith - Kelowna Capital News
With another earthquake in Japan in the headlines Thursday, B.C.’s forest industry is offering whatever assistance it can, said the president and CEO of the Council of Forrest Industries at the Kelowna Chamber of Commerce monthly luncheon.
Over the course of the last week, John Allan said representatives from the Canada’s forestry industry have been meeting with the Japanese to see what is needed to help people establish some normalcy in the on-going disaster.
“Our focus in Japan is to be of assistance. We don’t want to be seen to be salivating at the mouth as this is a market opportunity. It’s just not appropriate,” said Allan.
“…We are offering our hand out to Japan to say tell us what you need.”
The country’s leaders have already set a goal of constructing 30,000 housing units before the end of May to help replace homes for those displaced by the tsunami, but Allan presented the project more as the tip of the iceberg.
“My sense would be that this is a small percentage of what they’re actually going to need, and I’m wondering if they aren’t going to need something more like 100,000 units,” he said.
Japan is a key lumber market for Canada’s industry as the country traditionally builds with wood and was already facing a rapidly aging population in need of new buildings, like retirement homes, to meet a new need.
It has also been a key market for pine beetle wood and the Interior of B.C.’s industry players are facing a major legal battle over the pricing of this new commodity.
Arbitration with the United States on pricing of the wood under the Softwood Lumber Agreement begins next week and is expected to be a major showdown, Allan indicated.
“The U.S. Trade Representative’s office, after lots of political lobbying by the lumber lobby in Washington, D.C., which is one of the best political lobby groups I’ve ever seen in action—very focused, very political—are claiming that there’s something wrong with the way we price grade four timber,” he said.
Allan noted that grade four is what’s assigned to beetle timber. The beetle wood is very difficult to cut and has been priced lower to encourage sales, angering American lumber producers.
Though the United States has targeted a six-month time frame for the legal scuffle, Allan said he expects it will be a far more protracted issue that will dominate news headlines in coming months.
The London Court of International Arbitration will see three European lawyers hear the beginnings of the case next Monday in Washington, D.C., who will set the pace moving forward.
“It will be an onerous exercise for us and it will be an investigation into how we price and grade our timber in B.C.,” he said. “I can say within the confines of this room, we are being cautious.”
Should Canada lose ground in the dispute, a good deal of the B.C. Interior’s wood will face a nominal border tax, which could severely affect export profits.
That said, softwood lumber squabbles with the U.S. are not as heated as they once were, according to Allan.
When Canada’s softwood sales presence starts to exceed 30 per cent of the U.S. market, it piques the interest of the U.S. lumber lobby leading to trade disputes, but the emergence of the Chinese market appears to be easing that conflict.
This year alone, sales in China have increased by 100 per cent, thanks to the efforts of the provincial government, which spent years of leg-work helping establish new building codes and a better understanding of how to build with wood in China where it has not been a traditional building material.
jsmith@kelownacapnews.com
Source: BC Local News
April 8, 2011 - Jennifer Smith - Kelowna Capital News
With another earthquake in Japan in the headlines Thursday, B.C.’s forest industry is offering whatever assistance it can, said the president and CEO of the Council of Forrest Industries at the Kelowna Chamber of Commerce monthly luncheon.
Over the course of the last week, John Allan said representatives from the Canada’s forestry industry have been meeting with the Japanese to see what is needed to help people establish some normalcy in the on-going disaster.
“Our focus in Japan is to be of assistance. We don’t want to be seen to be salivating at the mouth as this is a market opportunity. It’s just not appropriate,” said Allan.
“…We are offering our hand out to Japan to say tell us what you need.”
The country’s leaders have already set a goal of constructing 30,000 housing units before the end of May to help replace homes for those displaced by the tsunami, but Allan presented the project more as the tip of the iceberg.
“My sense would be that this is a small percentage of what they’re actually going to need, and I’m wondering if they aren’t going to need something more like 100,000 units,” he said.
Japan is a key lumber market for Canada’s industry as the country traditionally builds with wood and was already facing a rapidly aging population in need of new buildings, like retirement homes, to meet a new need.
It has also been a key market for pine beetle wood and the Interior of B.C.’s industry players are facing a major legal battle over the pricing of this new commodity.
Arbitration with the United States on pricing of the wood under the Softwood Lumber Agreement begins next week and is expected to be a major showdown, Allan indicated.
“The U.S. Trade Representative’s office, after lots of political lobbying by the lumber lobby in Washington, D.C., which is one of the best political lobby groups I’ve ever seen in action—very focused, very political—are claiming that there’s something wrong with the way we price grade four timber,” he said.
Allan noted that grade four is what’s assigned to beetle timber. The beetle wood is very difficult to cut and has been priced lower to encourage sales, angering American lumber producers.
Though the United States has targeted a six-month time frame for the legal scuffle, Allan said he expects it will be a far more protracted issue that will dominate news headlines in coming months.
The London Court of International Arbitration will see three European lawyers hear the beginnings of the case next Monday in Washington, D.C., who will set the pace moving forward.
“It will be an onerous exercise for us and it will be an investigation into how we price and grade our timber in B.C.,” he said. “I can say within the confines of this room, we are being cautious.”
Should Canada lose ground in the dispute, a good deal of the B.C. Interior’s wood will face a nominal border tax, which could severely affect export profits.
That said, softwood lumber squabbles with the U.S. are not as heated as they once were, according to Allan.
When Canada’s softwood sales presence starts to exceed 30 per cent of the U.S. market, it piques the interest of the U.S. lumber lobby leading to trade disputes, but the emergence of the Chinese market appears to be easing that conflict.
This year alone, sales in China have increased by 100 per cent, thanks to the efforts of the provincial government, which spent years of leg-work helping establish new building codes and a better understanding of how to build with wood in China where it has not been a traditional building material.
jsmith@kelownacapnews.com
Source: BC Local News
Fpac announces launch of Bio-pathways Partnership Network
OTTAWA, April 7 /CNW/ - The Forest Products Association of Canada (FPAC) is pleased to announce the launch of a new Bio-pathways Partnership Network aimed at exploring new business ventures that will help exploit the economic opportunities of the emerging bio-age.
Network participants will come from such sectors as the chemical, energy, pharmaceutical, auto, aerospace, and plastics industries as well as other technology providers that can collaborate with the forest products industry on extracting bio-chemicals, bio-energy and bio-materials from trees.
"This is a welcome development stemming from our recent bio-pathway reports. That study confirmed the social, economic and environmental advantage of integrating these new bio-products in existing mill operations. It also pointed to a myriad of market opportunities for companies willing to invest in new green innovations based on wood fibre," says the President and CEO of FPAC, Avrim Lazar. "We know that business as usual will not work. Establishing partnerships will be a win-win situation economically that will allow us to more quickly transform the forest products industry."
An inaugural meeting of the network that took place earlier this month in Toronto will be followed by meetings in British Columbia and Alberta. Members are also working to set up a steering committee and a secretariat to manage the network. The goal is to provide a forum for the development of business to business relationships, to identify and conduct research, to facilitate access to expertise in planning and development of bio-products and to reach out to other potential partners interested in innovation in the forest products industry.
"Wood fibre is one of Canada's most abundant natural resources and extracting more value from that wood is a real game changer for the Canadian forest products industry. It's about higher profits, more jobs and furthering our environmental credentials. " says Lazar. "With this new network, we are inviting other sectors to partner with FPAC members to take advantage of the potential of the bio-economy with exciting new products, new technologies and new markets."
Interested parties are encouraged to join the Network at http://www.fpac.ca/bio-pathways-partnership/
For more information on the Bio-pathways project please visit www.fpac.ca/bio-pathways
OTTAWA, April 7 /CNW/ - The Forest Products Association of Canada (FPAC) is pleased to announce the launch of a new Bio-pathways Partnership Network aimed at exploring new business ventures that will help exploit the economic opportunities of the emerging bio-age.
Network participants will come from such sectors as the chemical, energy, pharmaceutical, auto, aerospace, and plastics industries as well as other technology providers that can collaborate with the forest products industry on extracting bio-chemicals, bio-energy and bio-materials from trees.
"This is a welcome development stemming from our recent bio-pathway reports. That study confirmed the social, economic and environmental advantage of integrating these new bio-products in existing mill operations. It also pointed to a myriad of market opportunities for companies willing to invest in new green innovations based on wood fibre," says the President and CEO of FPAC, Avrim Lazar. "We know that business as usual will not work. Establishing partnerships will be a win-win situation economically that will allow us to more quickly transform the forest products industry."
An inaugural meeting of the network that took place earlier this month in Toronto will be followed by meetings in British Columbia and Alberta. Members are also working to set up a steering committee and a secretariat to manage the network. The goal is to provide a forum for the development of business to business relationships, to identify and conduct research, to facilitate access to expertise in planning and development of bio-products and to reach out to other potential partners interested in innovation in the forest products industry.
"Wood fibre is one of Canada's most abundant natural resources and extracting more value from that wood is a real game changer for the Canadian forest products industry. It's about higher profits, more jobs and furthering our environmental credentials. " says Lazar. "With this new network, we are inviting other sectors to partner with FPAC members to take advantage of the potential of the bio-economy with exciting new products, new technologies and new markets."
Interested parties are encouraged to join the Network at http://www.fpac.ca/bio-pathways-partnership/
For more information on the Bio-pathways project please visit www.fpac.ca/bio-pathways
Export diversification key for forestry industry's future
April 7, 2011 - Mo Amir, Vancouver Sun
Can British Columbia's forestry industry ever learn to diversify its export portfolio?
It seems as if the industry and its policy-makers in government have replaced a historical market reliance on the United States with a newfound, emerging reliance on China.
Canadian softwood lumber was so dependent on the American market that -after the American housing crash in the latter half of the last decade -the softwood lumber industry collapsed into a doomsday crisis that saw prices, production levels, and, subsequently, forestry-related jobs plunging to unimaginable lows.
As most timber in Canada is owned by the provinces, the responsibility for sensible forestry management lies with the provincial government.
Since taxpayers essentially pay for the ownership of timber lands, policymakers have a fiduciary duty to work with industry in order to maximize the return from this resource in a way that best benefits the province.
So whether it was the stress from depressed stock prices or out-of-work mill workers, provincial policy-makers mobilized to pull the industry out of calamity.
The "new" vision was clear: Develop the Chinese market for B.C. lumber exports.
In the Ministry of Forests and Range's Service Plan for 2010-11 - 2011-12, a key priority is to "dramatically increase exports to China" with no mention of any other export market.
To the government's credit, recordshattering lumber exports to China have lifted prices and production while creating jobs.
Indeed, the consensus within the industry is that China is the saviour of the B.C. lumber industry due to the efforts of the provincial government.
But was our declining American juggernaut simply replaced with a rising Chinese dragon?
The demand of one single, yet large, market still determines the price of our lumber with little foresight to temper our optimism.
When the Chinese bubble pops, our industry may relapse into crisis mode.
China has historically exhibited precarious purchasing habits.
If lumber prices rise to the levels of the mid-2000s, there may be enough elasticity in Chinese demand for our softwood lumber to eliminate exports to China altogether.
China was a major importer of sawlogs and lumber from the United States in the 1980s -a time when the North American log and lumber market suffered from a deep economic and housing recession that caused the demand and prices to plunge.
When prices recovered in the 1990s, North American wood exports to China all but vanished.
In fact, when the Random Lengths Framing Lumber Composite Price spiked above the $360 level in the second quarter of 2010, offshore sales to China sharply dropped.
The Composite Price then crashed by nearly $120 within the same quarter.
Evidently, China is only a viable export market when prices are below a certain price ceiling.
Given the recent announcement by B.C. chief forester Jim Snetsinger that British Columbia's allowable annual timber harvest will be reduced by as much as 25 per cent in some forest districts, B.C. will have even more limited lumber supplies in an already supply-driven market.
With the emphasis on China, B.C. might be losing an opportunity to diversify the industry's export portfolio, while Europe and New Zealand sink their claws deeper into other markets.
In an industry where the first-mover advantage in a new market allows an exporting country to develop and consolidate appetites for sizes, species, and standards in that market, relinquishing exports to other lumberproducing countries is simply not an option.
While British Columbia has established trade and opportunities offices throughout Asia (and not just in China), the Ministry of Forests should make a concerted effort with BC Wood so that the necessary firm -and state -relationships are fostered to promote B.C. lumber abroad.
Former forests, mines, and lands minister Pat Bell has done an excellent job in developing the Chinese market.
Our industry has a more outwardlooking (albeit, still narrow) global focus both in its production and its marketing.
However, export diversification does not end with China.
It is time for British Columbia's forestry industry to adopt an overarching strategy of export pluralism.
Our policy-makers are determined to sustain the industry, our mills are technologically advanced, and our workforce is disciplined.
A pluralist philosophy toward B.C. softwood exports may just be what the industry needs to stabilize its growth and future.
Mo Amir is the general manager at SPF Precut Lumber, exporter of Canadian wood products to over 15 different countries and winner of the 2010 BC Export Award.
Source: The Vancouver Sun
April 7, 2011 - Mo Amir, Vancouver Sun
Can British Columbia's forestry industry ever learn to diversify its export portfolio?It seems as if the industry and its policy-makers in government have replaced a historical market reliance on the United States with a newfound, emerging reliance on China.
Canadian softwood lumber was so dependent on the American market that -after the American housing crash in the latter half of the last decade -the softwood lumber industry collapsed into a doomsday crisis that saw prices, production levels, and, subsequently, forestry-related jobs plunging to unimaginable lows.
As most timber in Canada is owned by the provinces, the responsibility for sensible forestry management lies with the provincial government.
Since taxpayers essentially pay for the ownership of timber lands, policymakers have a fiduciary duty to work with industry in order to maximize the return from this resource in a way that best benefits the province.
So whether it was the stress from depressed stock prices or out-of-work mill workers, provincial policy-makers mobilized to pull the industry out of calamity.
The "new" vision was clear: Develop the Chinese market for B.C. lumber exports.
In the Ministry of Forests and Range's Service Plan for 2010-11 - 2011-12, a key priority is to "dramatically increase exports to China" with no mention of any other export market.
To the government's credit, recordshattering lumber exports to China have lifted prices and production while creating jobs.
Indeed, the consensus within the industry is that China is the saviour of the B.C. lumber industry due to the efforts of the provincial government.
But was our declining American juggernaut simply replaced with a rising Chinese dragon?
The demand of one single, yet large, market still determines the price of our lumber with little foresight to temper our optimism.
When the Chinese bubble pops, our industry may relapse into crisis mode.
China has historically exhibited precarious purchasing habits.
If lumber prices rise to the levels of the mid-2000s, there may be enough elasticity in Chinese demand for our softwood lumber to eliminate exports to China altogether.
China was a major importer of sawlogs and lumber from the United States in the 1980s -a time when the North American log and lumber market suffered from a deep economic and housing recession that caused the demand and prices to plunge.
When prices recovered in the 1990s, North American wood exports to China all but vanished.
In fact, when the Random Lengths Framing Lumber Composite Price spiked above the $360 level in the second quarter of 2010, offshore sales to China sharply dropped.
The Composite Price then crashed by nearly $120 within the same quarter.
Evidently, China is only a viable export market when prices are below a certain price ceiling.
Given the recent announcement by B.C. chief forester Jim Snetsinger that British Columbia's allowable annual timber harvest will be reduced by as much as 25 per cent in some forest districts, B.C. will have even more limited lumber supplies in an already supply-driven market.
With the emphasis on China, B.C. might be losing an opportunity to diversify the industry's export portfolio, while Europe and New Zealand sink their claws deeper into other markets.
In an industry where the first-mover advantage in a new market allows an exporting country to develop and consolidate appetites for sizes, species, and standards in that market, relinquishing exports to other lumberproducing countries is simply not an option.
While British Columbia has established trade and opportunities offices throughout Asia (and not just in China), the Ministry of Forests should make a concerted effort with BC Wood so that the necessary firm -and state -relationships are fostered to promote B.C. lumber abroad.
Former forests, mines, and lands minister Pat Bell has done an excellent job in developing the Chinese market.
Our industry has a more outwardlooking (albeit, still narrow) global focus both in its production and its marketing.
However, export diversification does not end with China.
It is time for British Columbia's forestry industry to adopt an overarching strategy of export pluralism.
Our policy-makers are determined to sustain the industry, our mills are technologically advanced, and our workforce is disciplined.
A pluralist philosophy toward B.C. softwood exports may just be what the industry needs to stabilize its growth and future.
Mo Amir is the general manager at SPF Precut Lumber, exporter of Canadian wood products to over 15 different countries and winner of the 2010 BC Export Award.
Source: The Vancouver Sun
Expect more mergers to take root in global forestry industry this year
April 5, 2011 – Robert Gibbens, The Montreal Gazette
Stand by for more mergers and acquisitions in the global forest products industry this year, says a new study by PwC, formerly PricewaterhouseCoopers.
Last year in North America, 66 deals worth $3.2 billion U.S. were completed, up 47 per cent from recession-hit 2009. They included 15 Canadian deals worth $1.8 billion U.S., mainly from AbitibiBowater's $940-million (U.S.) asset sale and Eacom Timber's acquisition of Domtar's Corp.'s lumber business.
"Distress lay behind many of the North American deals in 2010 as many producers had to seek bankruptcy protection ... amid declining demand," said PwC's Frédéric Bouchard, national transaction leader for the industry.
"Companies not in bankruptcy have been busy rationalizing, with machine or mill closures, smaller divestments and market repositioning," he added.
"With companies becoming more certain about the economic outlook, more deals will surely follow."
He said the consolidation process in North America is more advanced than in Europe, but that is expected to change this year with Europe cutting capacity in line with market demand.
Globally integrated producers continue to emerge from the 2008-09 downturn with relatively healthy balance sheets.
Bouchard noted that private equity is returning to the sector and playing a large part in downstream packaging and converting deals.
"The Asian fibre deficit, notably in China, will be a continued force on the acquisition scene," he said.
"China's forest products market is heavily fragmented and government interaction and market logic will have a core part to play over the coming months."
Source: The Montreal Gazette
April 5, 2011 – Robert Gibbens, The Montreal Gazette
Stand by for more mergers and acquisitions in the global forest products industry this year, says a new study by PwC, formerly PricewaterhouseCoopers.
Last year in North America, 66 deals worth $3.2 billion U.S. were completed, up 47 per cent from recession-hit 2009. They included 15 Canadian deals worth $1.8 billion U.S., mainly from AbitibiBowater's $940-million (U.S.) asset sale and Eacom Timber's acquisition of Domtar's Corp.'s lumber business.
"Distress lay behind many of the North American deals in 2010 as many producers had to seek bankruptcy protection ... amid declining demand," said PwC's Frédéric Bouchard, national transaction leader for the industry.
"Companies not in bankruptcy have been busy rationalizing, with machine or mill closures, smaller divestments and market repositioning," he added.
"With companies becoming more certain about the economic outlook, more deals will surely follow."
He said the consolidation process in North America is more advanced than in Europe, but that is expected to change this year with Europe cutting capacity in line with market demand.
Globally integrated producers continue to emerge from the 2008-09 downturn with relatively healthy balance sheets.
Bouchard noted that private equity is returning to the sector and playing a large part in downstream packaging and converting deals.
"The Asian fibre deficit, notably in China, will be a continued force on the acquisition scene," he said.
"China's forest products market is heavily fragmented and government interaction and market logic will have a core part to play over the coming months."
Source: The Montreal Gazette
Asia Pulp & Paper Group Partners with Carbon Conservation on Vision 2020: A Roadmap to Global Leadership in Sustainable Pulp and Paper Production
April 5, 2011 – The Montreal Gazette
Asia Pulp & Paper Group (APP) announced today it is expanding its partnership with Carbon Conservation by engaging the environmental and sustainability consulting firm to help craft Vision 2020, a roadmap to guide sustainability principles, goals and program execution across all aspects of the company’s Indonesian operations from today to the year 2020.
Vision 2020 will assess three layers of business operations where APP has direct and indirect influence over sustainability programs and practices. The layers are structured according to a set of boundaries, based on APP’s level of control and influence within its operations and supply chains. The Vision 2020 roadmap will encompass a broad range of critical issues integral to the Indonesian pulp and paper industry and forestry, and plot a course of action that will help APP achieve its goal of becoming the world leader in sustainable pulp and paper manufacturing.
Layer one of Vision 2020 will focus on the objective of creating a cleaner pulp and paper production process. It will address the impact of APP’s manufacturing processes on air, water and soil, including among others: APP’s initiatives to support the Government of Indonesia’s greenhouse gas emission reduction targets as well as clean water and water conservation issues. Layer two will expand beyond APP’s manufacturing operations into aspects of the supply chain where APP has direct influence with exclusive suppliers and partners. This area will cover goals and programs related to sustainable forestry, land conversion, peat management, national and international certification schemes, conservation of biodiversity and wildlife protection, and energy supply. The third layer will expand further into the supply chain to non-exclusive suppliers where APP has indirect influence over their sustainability practices. Each layer will factor in and address APP and its supplier’s impact on economic, social and human rights needs of employees and people in the communities where APP and its suppliers operate.
“Pulp and paper is already a highly complex industry touched by so many environmental, economic and social issues. The challenges cover such a wide spectrum of issues that are all interrelated, from climate change to endangered wildlife protection to programs dealing with infant mortality. Add to that the sheer size of APP Group and the unique aspects of navigating these challenges in such a rapidly changing and industrializing country as Indonesia and you can see why it’s so critical we have a clearly defined roadmap guiding our organization’s overall sustainability programs,” said Aida Greenbury, APP Managing Director.
Dorjee Sun, CEO and founding partner of Carbon Conservation, said that in addition to assessing APP’s operations, the group will look at relevant best-in-class case studies from companies across the globe to help model and benchmark APP’s programs. Carbon Conservation will also engage a range of third-party experts to participate in the process, initially validating elements of the roadmap and later advising and potentially partnering with APP on execution.
“The sustainability challenges facing the pulp and paper industry are just too diverse and far-reaching for any single person or organization to say they are truly an expert. You may be considered a world leader in carbon sequestration and water management, but more than likely you aren’t going to have the same level of experience in conservation and community development. To truly lay out a path to be a world leader in sustainability covering all aspects of such a complex organization demands that we engage credible experts throughout each stage of the process,” said Mr. Sun.
APP selected Carbon Conservation as its Vision 2020 partner based on its experience with the company developing the Kampar Carbon Reserve. Located on 15,000 hectares in Riau Province in Sumatra, the Kampar Carbon Reserve is being developed as the world’s first privately funded project turning pulpwood plantation concessions into a carbon reserve.
“The group at Carbon Conservation understands the delicate balance we have to maintain developing our sustainability programs within the truly unique context of the social and economic challenges we face in Indonesia. At the same time the group understands the perspective and expectations of customers and stakeholders around the world that their partners exhibit a genuine respect for and commitment to the highest standards of sustainable business management,” Ms. Greenbury said.
“Working inside APP as a partner for the past six months has given us unique first-hand insight into the path the sustainability program has been on over the past six years. We’ve also had the opportunity to see the depth of aggressive and ambitious research and development programs taking place today,” said Mr. Sun. “The challenge APP faces is pulling all of these programs and activities into a single integrated vision with a clear path to execution. We can help ensure the individual aspects of the APP sustainability program within the mills, pulpwood concessions and surrounding communities integrate seamlessly together to maximize the cumulative positive impact across the organization.”
In recent months APP has announced several specific goals and research and development initiatives that will roll up into the Vision 2020 roadmap. Three core pillars for sustainable forest management announced by APP include:
ABOUT APP
Asia Pulp & Paper Group (APP) is brand umbrella for paper products manufactured by a number of mills in Indonesia, inter alia PT. Indah Kiat Pulp & Paper Tbk, PT. Pindo Deli Pulp and Paper Mills, PT. Pabrik Kertas Tjiwi Kimia Tbk, PT. Lontar Papyrus Pulp & Paper Industries, PT. Ekamas Fortuna and PT. The Univenus. APP is headquartered in Indonesia and markets its products to over 120 countries. The majority of APP’s production facilities hold Chain-of-Custody certification from LEI and PEFC.
ABOUT CARBON CONSERVATION
Carbon Conservation is a pioneering Asian Australian company based in Singapore and a world leader in deforestation carbon credits. As a pioneer in the commercialization of forest-based carbon offsets, Carbon Conservation has had numerous successes in the generation of positive marketing rewards for supporters and participants in our projects. Carbon Conservations high profile carbon finance projects have been well documented in the media via various articles in the Wall Street Journal, Fortune Magazine and others. Some of these achievements include Carbon Conservation’s deal with Merrill Lynch on the Aceh Ulu Masen Project clinching the Carbon Finance Deal of the Year in 2008. CC’s CEO, Dorjee Sun, has also been named one of TIME magazine’s Environmental Heroes of the Year 2009 as well as was featured in the National Geographic documentary The Burning Season narrated by Hugh Jackman, which has aired in cinemas and on global TV.
Source: The Montreal Gazette
April 5, 2011 – The Montreal Gazette
Asia Pulp & Paper Group (APP) announced today it is expanding its partnership with Carbon Conservation by engaging the environmental and sustainability consulting firm to help craft Vision 2020, a roadmap to guide sustainability principles, goals and program execution across all aspects of the company’s Indonesian operations from today to the year 2020.
Vision 2020 will assess three layers of business operations where APP has direct and indirect influence over sustainability programs and practices. The layers are structured according to a set of boundaries, based on APP’s level of control and influence within its operations and supply chains. The Vision 2020 roadmap will encompass a broad range of critical issues integral to the Indonesian pulp and paper industry and forestry, and plot a course of action that will help APP achieve its goal of becoming the world leader in sustainable pulp and paper manufacturing.
Layer one of Vision 2020 will focus on the objective of creating a cleaner pulp and paper production process. It will address the impact of APP’s manufacturing processes on air, water and soil, including among others: APP’s initiatives to support the Government of Indonesia’s greenhouse gas emission reduction targets as well as clean water and water conservation issues. Layer two will expand beyond APP’s manufacturing operations into aspects of the supply chain where APP has direct influence with exclusive suppliers and partners. This area will cover goals and programs related to sustainable forestry, land conversion, peat management, national and international certification schemes, conservation of biodiversity and wildlife protection, and energy supply. The third layer will expand further into the supply chain to non-exclusive suppliers where APP has indirect influence over their sustainability practices. Each layer will factor in and address APP and its supplier’s impact on economic, social and human rights needs of employees and people in the communities where APP and its suppliers operate.
“Pulp and paper is already a highly complex industry touched by so many environmental, economic and social issues. The challenges cover such a wide spectrum of issues that are all interrelated, from climate change to endangered wildlife protection to programs dealing with infant mortality. Add to that the sheer size of APP Group and the unique aspects of navigating these challenges in such a rapidly changing and industrializing country as Indonesia and you can see why it’s so critical we have a clearly defined roadmap guiding our organization’s overall sustainability programs,” said Aida Greenbury, APP Managing Director.
Dorjee Sun, CEO and founding partner of Carbon Conservation, said that in addition to assessing APP’s operations, the group will look at relevant best-in-class case studies from companies across the globe to help model and benchmark APP’s programs. Carbon Conservation will also engage a range of third-party experts to participate in the process, initially validating elements of the roadmap and later advising and potentially partnering with APP on execution.
“The sustainability challenges facing the pulp and paper industry are just too diverse and far-reaching for any single person or organization to say they are truly an expert. You may be considered a world leader in carbon sequestration and water management, but more than likely you aren’t going to have the same level of experience in conservation and community development. To truly lay out a path to be a world leader in sustainability covering all aspects of such a complex organization demands that we engage credible experts throughout each stage of the process,” said Mr. Sun.
APP selected Carbon Conservation as its Vision 2020 partner based on its experience with the company developing the Kampar Carbon Reserve. Located on 15,000 hectares in Riau Province in Sumatra, the Kampar Carbon Reserve is being developed as the world’s first privately funded project turning pulpwood plantation concessions into a carbon reserve.
“The group at Carbon Conservation understands the delicate balance we have to maintain developing our sustainability programs within the truly unique context of the social and economic challenges we face in Indonesia. At the same time the group understands the perspective and expectations of customers and stakeholders around the world that their partners exhibit a genuine respect for and commitment to the highest standards of sustainable business management,” Ms. Greenbury said.
“Working inside APP as a partner for the past six months has given us unique first-hand insight into the path the sustainability program has been on over the past six years. We’ve also had the opportunity to see the depth of aggressive and ambitious research and development programs taking place today,” said Mr. Sun. “The challenge APP faces is pulling all of these programs and activities into a single integrated vision with a clear path to execution. We can help ensure the individual aspects of the APP sustainability program within the mills, pulpwood concessions and surrounding communities integrate seamlessly together to maximize the cumulative positive impact across the organization.”
In recent months APP has announced several specific goals and research and development initiatives that will roll up into the Vision 2020 roadmap. Three core pillars for sustainable forest management announced by APP include:
- 1) To source 100 percent of its pulpwood supply from sustainable plantation stock by the end of 2015
- 2) To achieve the government of Indonesia’s mandatory Sustainable Forest Management certification for APP’s pulpwood suppliers by the end of 2015
- 3) To have all exclusive pulpwood suppliers achieve the comprehensive and voluntary-based LEI (Indonesian Ecolabelling Institute) certification standard by the end of 2020
- An ambitious independent study on the impact of plantation development and greenhouse gas emissions on all soil types;
- A commitment to the principles of the UN Global Compact CEO Water Mandate as well as a partnership with Nalco to map out the company’s overall water footprint across all aspects of its Indonesia and China operations;
- Enhancing key conservation areas, including creation of valuable wildlife corridors;
- Research and pilot programs involving the protection of key Indonesian endangered species, including the Sumatran Tiger, Javan Rhino and Orangutan;
- A pilot program to develop a bio-village in the Giam Siak Kecil Biosphere reserve in Riau Province;
- Developing a verifiable carbon conservation model at Kampar Carbon Reserve, the world’s first pulpwood plantation REDD+ project;
- Development of eco-friendly housing with Habitat for Humanity Indonesia for a poverty stricken community in Central Java;
- Expansion of legality, Chain of Custody and sustainable forest certification management programs to meet 2020 vision;
- Expansion of CDM programs;
- And a commitment by APP and its pulpwood suppliers to plant 1 million trees a day as part of its afforestation program.
ABOUT APP
Asia Pulp & Paper Group (APP) is brand umbrella for paper products manufactured by a number of mills in Indonesia, inter alia PT. Indah Kiat Pulp & Paper Tbk, PT. Pindo Deli Pulp and Paper Mills, PT. Pabrik Kertas Tjiwi Kimia Tbk, PT. Lontar Papyrus Pulp & Paper Industries, PT. Ekamas Fortuna and PT. The Univenus. APP is headquartered in Indonesia and markets its products to over 120 countries. The majority of APP’s production facilities hold Chain-of-Custody certification from LEI and PEFC.
ABOUT CARBON CONSERVATION
Carbon Conservation is a pioneering Asian Australian company based in Singapore and a world leader in deforestation carbon credits. As a pioneer in the commercialization of forest-based carbon offsets, Carbon Conservation has had numerous successes in the generation of positive marketing rewards for supporters and participants in our projects. Carbon Conservations high profile carbon finance projects have been well documented in the media via various articles in the Wall Street Journal, Fortune Magazine and others. Some of these achievements include Carbon Conservation’s deal with Merrill Lynch on the Aceh Ulu Masen Project clinching the Carbon Finance Deal of the Year in 2008. CC’s CEO, Dorjee Sun, has also been named one of TIME magazine’s Environmental Heroes of the Year 2009 as well as was featured in the National Geographic documentary The Burning Season narrated by Hugh Jackman, which has aired in cinemas and on global TV.
Source: The Montreal Gazette
Canadian forestry industry to continue consolidating in 2011
Canadian FPP deals in 2010 shaped by restructuring and divesting non-core assets
TORONTO, April 4 /CNW/ - The majority of Canadian and US deal-making in the forestry sector in 2010 involved pulp and paper companies in or coming out of bankruptcy protection and further consolidation is expected in 2011, according to PwC's annual global forest, paper and packaging deals report Branching Out.
In 2010, North American deal numbers rose 47% to 66 deals worth US$3.2 billion from 45 deals worth US$1 billion in 2009. However, this is a far cry from the US$17 billion per annum worth of deals that were transacted in North America in 2006 and 2007, and the US$30 billion seen in 2005. In 2010, there were 15 Canadian deals worth US$1.8 billion, more than half of the value of all North American transactions.
North America's largest deal in 2010 was when Canadian-owned AbitibiBowater divested US$940 million of non-core land and assets to an undisclosed buyer before emerging from creditor protection. Financially troubled Grant Forest Products was sold for US$400 million to Georgia Pacific and Eacom Timber Corporation bought the non-core forest product business from Domtar for US$78 million.
"On a positive note, deal activity in North America revived after a virtual collapse the previous year," says Frédéric Bouchard, national transaction forest, paper and packaging leader, PwC. "However, distress lay behind many of the 2010 deals as many Canadian and US pulp and paper producers had to seek bankruptcy protection in recent years amidst declining demand."
Companies that have not been in bankruptcy proceedings have been busy rationalizing their operations with closures, smaller divestments and repositioning. With companies becoming more certain about the economic outlook, there will likely be a wave of deals as more companies consolidate. Domtar's sale of its wood products business to Eacom Timber in 2010 is a case in point.
Globally, there were 385 deals struck in 2010, up 4.6% from 2009, but total value fell to US$12.7 billion in 2010 from US$18.7 billion in 2009. For the first time since PwC began collecting FPP deal data in 2003, Europe had the largest share of deal value with US$4.6 billion, or 36%, of the total FPP deal value.
"North American companies are further advanced than their European counterparts in consolidating, reducing capacity and restructuring in the face of declining demand for newsprint, printing and writing grades," says Bouchard. "However, we expect this to begin to change in 2011 with Europe following in North America's footsteps in consolidating capacity to be in line with market demand."
As predicted in last year's report, market distress continued to affect many non-integrated pulp and paper companies in mature markets caught between high input prices and low demand. In contrast, integrated producers are continuing to emerge out of the downturn with relatively healthy balance sheets.
Private equity (PE) accounted for 22% of total FPP deal value in 2010 and more than half (56%) of converter deal value. Although 2010 was a low year in terms of numbers of PE-backed deals—just 56 deals down from 107 last year—some larger transactions ensured the US$1.8 billion low point in 2009 was bumped up to US$2.8 billion in 2010. This boost was aided by PE coming up with the biggest deal of 2010 with UK PE firm Candover Investments' sale of Europe's Ontex to TGP Capital and GS Capital Partners.
2011 Outlook
PwC's Deal Team (www.pwc.com/ca/deals) helps clients to achieve deal success—from concept to close and beyond. As part of the world's largest Transaction Advisory practice , and with our global Corporate Finance group being 2010 Upper Mid Market M&A Advisor of the Year , the PwC Canada Deals Team is your gateway to an exciting new world of emerging M&A opportunities.
Firm Description
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See www.pwc.com for more information. In Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca) and its related entities have more than 5,300 partners and staff in offices across the country.
"PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
Canadian FPP deals in 2010 shaped by restructuring and divesting non-core assets
TORONTO, April 4 /CNW/ - The majority of Canadian and US deal-making in the forestry sector in 2010 involved pulp and paper companies in or coming out of bankruptcy protection and further consolidation is expected in 2011, according to PwC's annual global forest, paper and packaging deals report Branching Out.
In 2010, North American deal numbers rose 47% to 66 deals worth US$3.2 billion from 45 deals worth US$1 billion in 2009. However, this is a far cry from the US$17 billion per annum worth of deals that were transacted in North America in 2006 and 2007, and the US$30 billion seen in 2005. In 2010, there were 15 Canadian deals worth US$1.8 billion, more than half of the value of all North American transactions.
North America's largest deal in 2010 was when Canadian-owned AbitibiBowater divested US$940 million of non-core land and assets to an undisclosed buyer before emerging from creditor protection. Financially troubled Grant Forest Products was sold for US$400 million to Georgia Pacific and Eacom Timber Corporation bought the non-core forest product business from Domtar for US$78 million.
"On a positive note, deal activity in North America revived after a virtual collapse the previous year," says Frédéric Bouchard, national transaction forest, paper and packaging leader, PwC. "However, distress lay behind many of the 2010 deals as many Canadian and US pulp and paper producers had to seek bankruptcy protection in recent years amidst declining demand."
Companies that have not been in bankruptcy proceedings have been busy rationalizing their operations with closures, smaller divestments and repositioning. With companies becoming more certain about the economic outlook, there will likely be a wave of deals as more companies consolidate. Domtar's sale of its wood products business to Eacom Timber in 2010 is a case in point.
Globally, there were 385 deals struck in 2010, up 4.6% from 2009, but total value fell to US$12.7 billion in 2010 from US$18.7 billion in 2009. For the first time since PwC began collecting FPP deal data in 2003, Europe had the largest share of deal value with US$4.6 billion, or 36%, of the total FPP deal value.
"North American companies are further advanced than their European counterparts in consolidating, reducing capacity and restructuring in the face of declining demand for newsprint, printing and writing grades," says Bouchard. "However, we expect this to begin to change in 2011 with Europe following in North America's footsteps in consolidating capacity to be in line with market demand."
As predicted in last year's report, market distress continued to affect many non-integrated pulp and paper companies in mature markets caught between high input prices and low demand. In contrast, integrated producers are continuing to emerge out of the downturn with relatively healthy balance sheets.
Private equity (PE) accounted for 22% of total FPP deal value in 2010 and more than half (56%) of converter deal value. Although 2010 was a low year in terms of numbers of PE-backed deals—just 56 deals down from 107 last year—some larger transactions ensured the US$1.8 billion low point in 2009 was bumped up to US$2.8 billion in 2010. This boost was aided by PE coming up with the biggest deal of 2010 with UK PE firm Candover Investments' sale of Europe's Ontex to TGP Capital and GS Capital Partners.
2011 Outlook
- Deal momentum is returning to the FPP sector and is likely to continue for 2011 and into 2012. Key themes underpinning this are: consolidation (long awaited in Europe), security of fibre supply, geographical diversification into new, growth markets and repositioning of product and operational portfolios.
- Private equity is returning to the sector and is playing a very large part in downstream packaging and converting.
- The Asian fibre deficit, most notably in China, will be a continued force behind outbound acquisitions of foreign fibre resources by Chinese and other Asian companies. As the FPP market in China continues to remain heavily fragmented, both government interaction and market logic will have a core part to play in this area over the coming months.
PwC's Deal Team (www.pwc.com/ca/deals) helps clients to achieve deal success—from concept to close and beyond. As part of the world's largest Transaction Advisory practice , and with our global Corporate Finance group being 2010 Upper Mid Market M&A Advisor of the Year , the PwC Canada Deals Team is your gateway to an exciting new world of emerging M&A opportunities.
Firm Description
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See www.pwc.com for more information. In Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca) and its related entities have more than 5,300 partners and staff in offices across the country.
"PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
Analysts see re-rating of paper industry
Bilt Paper’s rethink on share sale following AP Paper acquisition shows higher valuation prospects for the sector
April 3, 2011 - john K, Livemint
An inbound acquisition, a cancelled share sale and a proposed foreign currency convertible bond issue—it all happened last week, changing the perception of the Indian paper industry among investors.
US-based paper and packaging company International Paper Co. has agreed to pay $257 million for a 53.5% stake in Andhra Pradesh Paper Mills Ltd. After a non-compete fee and a compulsory open offer, International Paper could end up paying $423 million for a 75% stake in AP Paper.
This prompted Bilt Paper Plc to pull out its proposed $330 million initial share sale on the London Stock Exchange.
While Bilt Paper was getting a valuation of seven times its past earnings before interest, taxes, depreciation and amortization (Ebitda), AP Paper’s stake sale value was around double that valuation, said an investment banker with direct knowledge in the matter. He didn’t want to be named.
“The acquisition of AP Paper by International Paper has set a benchmark, and Bilt Paper is looking at an upside on its valuations,” the banker said. “So the valuation exercise will be carried out again and a revised draft prospectus will be submitted to LSE.”
The valuation exercise will take another six-eight weeks and a listing announcement will be made by May or June, according to the banker.
In an unrelated development, JK Paper Ltd said in an exchange filing last Thursday its board would meet on 8 April to consider a €35 million (Rs.225 crore) foreign currency convertible bond issue.
What prompted this flurry of sudden activity? Like in other areas, the global growth compass for paper has slowly been shifting towards the historic global economic superpowers —China and India.
Together, India and China are estimated to make up 59% of global incremental paper and paperboard demand during 2009-20, according to data from Pöyry, an independent consultancy.
At the same time, North America and Western Europe production is forecast to decline from 46% to 38% of global production by 2020.
In the same period, the consultancy predicts the compounded annual growth rate (CAGR) for paper demand in India will be 6%—the highest in the world.
This is higher than both China (4.8%) and the rest of Asia (2%, excluding India and China) and significantly higher than Western Europe (minus 0.3%) and North America (minus 0.5%).
Per capita paper consumption in India was 8kg in 2009 compared with 63kg in mainland China, 158kg in the UK and 227kg in the US.
The decline in paper demand in the more advanced economies probably has something to do with a migration towards paperless offices. Back in Asian countries such as India, as more children go to school and more jobs are created with the economy maturing, the paper market is tipped to nearly double to 19 million tonnes (mt) by 2020 from 10 mt in 2009.
Currently, demand for dissolving pulp, an input in paper making, is 403,300 tonnes in India; production is only half that amount with the rest being imported.
With so much going for it, the Indian paper industry still needed a milestone to boost valuations. Does that mean investors will give the industry a long-term re-rating notwithstanding the rally in paper stocks since the news of the inbound acquisition?
Antique Stock Broking reckons paper companies will slowly get re-rated for their business models.
“While the catch up with the International Paper-AP Paper transaction valuation could be slow and tortuous, the northward trend is clearly established,” the brokerage said in its latest report.
john.k@livemint.com
Source : livemint
Bilt Paper’s rethink on share sale following AP Paper acquisition shows higher valuation prospects for the sector
April 3, 2011 - john K, Livemint
An inbound acquisition, a cancelled share sale and a proposed foreign currency convertible bond issue—it all happened last week, changing the perception of the Indian paper industry among investors.
US-based paper and packaging company International Paper Co. has agreed to pay $257 million for a 53.5% stake in Andhra Pradesh Paper Mills Ltd. After a non-compete fee and a compulsory open offer, International Paper could end up paying $423 million for a 75% stake in AP Paper.
This prompted Bilt Paper Plc to pull out its proposed $330 million initial share sale on the London Stock Exchange.
While Bilt Paper was getting a valuation of seven times its past earnings before interest, taxes, depreciation and amortization (Ebitda), AP Paper’s stake sale value was around double that valuation, said an investment banker with direct knowledge in the matter. He didn’t want to be named.
“The acquisition of AP Paper by International Paper has set a benchmark, and Bilt Paper is looking at an upside on its valuations,” the banker said. “So the valuation exercise will be carried out again and a revised draft prospectus will be submitted to LSE.”
The valuation exercise will take another six-eight weeks and a listing announcement will be made by May or June, according to the banker.
In an unrelated development, JK Paper Ltd said in an exchange filing last Thursday its board would meet on 8 April to consider a €35 million (Rs.225 crore) foreign currency convertible bond issue.
What prompted this flurry of sudden activity? Like in other areas, the global growth compass for paper has slowly been shifting towards the historic global economic superpowers —China and India.
Together, India and China are estimated to make up 59% of global incremental paper and paperboard demand during 2009-20, according to data from Pöyry, an independent consultancy.
At the same time, North America and Western Europe production is forecast to decline from 46% to 38% of global production by 2020.
In the same period, the consultancy predicts the compounded annual growth rate (CAGR) for paper demand in India will be 6%—the highest in the world.
This is higher than both China (4.8%) and the rest of Asia (2%, excluding India and China) and significantly higher than Western Europe (minus 0.3%) and North America (minus 0.5%).
Per capita paper consumption in India was 8kg in 2009 compared with 63kg in mainland China, 158kg in the UK and 227kg in the US.
The decline in paper demand in the more advanced economies probably has something to do with a migration towards paperless offices. Back in Asian countries such as India, as more children go to school and more jobs are created with the economy maturing, the paper market is tipped to nearly double to 19 million tonnes (mt) by 2020 from 10 mt in 2009.
Currently, demand for dissolving pulp, an input in paper making, is 403,300 tonnes in India; production is only half that amount with the rest being imported.
With so much going for it, the Indian paper industry still needed a milestone to boost valuations. Does that mean investors will give the industry a long-term re-rating notwithstanding the rally in paper stocks since the news of the inbound acquisition?
Antique Stock Broking reckons paper companies will slowly get re-rated for their business models.
“While the catch up with the International Paper-AP Paper transaction valuation could be slow and tortuous, the northward trend is clearly established,” the brokerage said in its latest report.
john.k@livemint.com
Source : livemint
U of T's forestry school faces the axe
April 3, 2011 - JAMES BRADSHAW, The Globe and Mail
After 104 years of seeing the forest for the trees, dwindling enrolment has left the future of the faculty of forestry at the University of Toronto in doubt.
It was Canada’s first forestry faculty, and North America’s second, but is now also one of the smallest, with a dozen faculty teaching fewer than 80 graduate students. For that reason, the administration has deemed it “not financially viable,” said dean Sandy Smith.
Canada has 10 per cent of the world’s remaining forest cover, and a quarter of its undisturbed frontier forest, but enrolment in forestry programs has dropped across the country, as well as outside it. In a 2009 survey of 65,000 graduating high school students, just six chose forestry as their preferred discipline.
A 2009 external review found the quality of U of T’s graduate forestry programs “unassailable,” but the faculty has been hobbled since its undergraduate program was cancelled in 1996. It still teaches 70 to 80 undergraduates a year through the Faculty of Arts and Science, but receives no revenue for it, and the university has to subsidize forestry with millions of dollars generated by other programs.
Now, U of T administrators are expected to force the pioneering program to join a larger faculty, which would mean it will lose its autonomy. Its professors fear that will eventually kill off a training ground for thousands of conservationists and ecological experts.
Although U of T’s forestry enrolment has crept up in recent years, the funding allocated to the faculty has dwindled.
“What that tells me is [our administrators] don’t want forestry,” Dr. Smith said. “That’s all I can read into that, is that our program is not valuable.”
Forestry faculties across Canada have struggled to stay relevant. The University of New Brunswick program has explored ways to reinvent itself and embraced courses in environmental management. The University of British Columbia developed a new bachelor’s degree in Natural Resources Conservation and attracts some 600 undergraduates each year to five programs.
Declining enrolment in forestry has been attributed largely to demographic trends driven by urbanization and lingering negative associations with logging and clear-cutting, but it also mirrors a decline in the forest industry, which has lost an estimated 100,000 jobs in the past five years.
Still, professors stress that their students remain in demand, with about half taking government jobs at agencies such as Parks Canada and others moving on to environmental groups, NGOs and consultancies.
Provost Cheryl Misak disputes the notion that U of T does not value forestry. But she said it “can no longer flourish” as it exists, adding that “[its changing structure] can be seen as the next step in the evolution of a glorious tradition.”
Dr. Smith counters that entreaties about tradition and history are brushed aside in favour of balancing budgets.
The year its undergraduate program closed, U of T added a professional, course-based master of forest conservation (MFC) alongside its research-based master’s and doctoral programs. Student Eric Jacobsen, 28, said the intimacy of the MFC program is a major draw – it has 22 students this year, an unusually large cohort – but he also saw it as unique.
“We do a lot more social and integrative approaches to forestry – that really spoke to me – and it’s also less of an industry-focused program,” he said.
Mr. Jacobsen’s classmates are familiar, collegial and on a first-name basis with their professors, but also dogged by “some fear that we’re going to lose a lot of our assets if we’re absorbed into the general arts and sciences,” he said.
The faculty is now considering creating a new environmental unit with the department of geography and the Centre for the Environment. Dr. Smith said he worries “the skill set of forestry” will gradually be “watered down,” and that departmental politics have limited the faculty’s options for moving more into environmental domains.
No restructuring can happen before the fall of 2012 as negotiations have been slow. Jack Saddler, a UBC forestry professor who conducted U of T’s external review, said it would be “a pity” if forestry loses its independence, but its low enrolment prospects are hard to ignore.
“Life evolves. People working in a faculty of forestry should know that,” Dr. Saddler said. “If you stay the same, you become extinct.”
Source: The Globe and Mail
April 3, 2011 - JAMES BRADSHAW, The Globe and Mail
After 104 years of seeing the forest for the trees, dwindling enrolment has left the future of the faculty of forestry at the University of Toronto in doubt.
It was Canada’s first forestry faculty, and North America’s second, but is now also one of the smallest, with a dozen faculty teaching fewer than 80 graduate students. For that reason, the administration has deemed it “not financially viable,” said dean Sandy Smith.
Canada has 10 per cent of the world’s remaining forest cover, and a quarter of its undisturbed frontier forest, but enrolment in forestry programs has dropped across the country, as well as outside it. In a 2009 survey of 65,000 graduating high school students, just six chose forestry as their preferred discipline.
A 2009 external review found the quality of U of T’s graduate forestry programs “unassailable,” but the faculty has been hobbled since its undergraduate program was cancelled in 1996. It still teaches 70 to 80 undergraduates a year through the Faculty of Arts and Science, but receives no revenue for it, and the university has to subsidize forestry with millions of dollars generated by other programs.
Now, U of T administrators are expected to force the pioneering program to join a larger faculty, which would mean it will lose its autonomy. Its professors fear that will eventually kill off a training ground for thousands of conservationists and ecological experts.
Although U of T’s forestry enrolment has crept up in recent years, the funding allocated to the faculty has dwindled.
“What that tells me is [our administrators] don’t want forestry,” Dr. Smith said. “That’s all I can read into that, is that our program is not valuable.”
Forestry faculties across Canada have struggled to stay relevant. The University of New Brunswick program has explored ways to reinvent itself and embraced courses in environmental management. The University of British Columbia developed a new bachelor’s degree in Natural Resources Conservation and attracts some 600 undergraduates each year to five programs.
Declining enrolment in forestry has been attributed largely to demographic trends driven by urbanization and lingering negative associations with logging and clear-cutting, but it also mirrors a decline in the forest industry, which has lost an estimated 100,000 jobs in the past five years.
Still, professors stress that their students remain in demand, with about half taking government jobs at agencies such as Parks Canada and others moving on to environmental groups, NGOs and consultancies.
Provost Cheryl Misak disputes the notion that U of T does not value forestry. But she said it “can no longer flourish” as it exists, adding that “[its changing structure] can be seen as the next step in the evolution of a glorious tradition.”
Dr. Smith counters that entreaties about tradition and history are brushed aside in favour of balancing budgets.
The year its undergraduate program closed, U of T added a professional, course-based master of forest conservation (MFC) alongside its research-based master’s and doctoral programs. Student Eric Jacobsen, 28, said the intimacy of the MFC program is a major draw – it has 22 students this year, an unusually large cohort – but he also saw it as unique.
“We do a lot more social and integrative approaches to forestry – that really spoke to me – and it’s also less of an industry-focused program,” he said.
Mr. Jacobsen’s classmates are familiar, collegial and on a first-name basis with their professors, but also dogged by “some fear that we’re going to lose a lot of our assets if we’re absorbed into the general arts and sciences,” he said.
The faculty is now considering creating a new environmental unit with the department of geography and the Centre for the Environment. Dr. Smith said he worries “the skill set of forestry” will gradually be “watered down,” and that departmental politics have limited the faculty’s options for moving more into environmental domains.
No restructuring can happen before the fall of 2012 as negotiations have been slow. Jack Saddler, a UBC forestry professor who conducted U of T’s external review, said it would be “a pity” if forestry loses its independence, but its low enrolment prospects are hard to ignore.
“Life evolves. People working in a faculty of forestry should know that,” Dr. Saddler said. “If you stay the same, you become extinct.”
Source: The Globe and Mail
Government rules killing forestry: Barrett
April 1, 2011 – CBC News
A Nova Scotia businessman with more than 60 years experience in the forestry sector says government rules and regulations are slowly killing his industry.
David Barrett, of Barrett Lumber Company in Beaver Bank, has written a letter to Premier Darrell Dexter and other political leaders outlining his frustrations.
Over the past few years, Barrett said, his company has seen its workforce shrink from 75 to 40 people.
"I'm angry and the purpose of this letter is to bring the issues to the table, to at least have them discuss it so that they know when they pass a law, they better damn well look at the end result, because there won't be anybody in Nova Scotia working in the forest," he said Friday.
The Barrett family has been in the lumber business since 1926. Through the years the mill grew into one of the biggest in the area. But three years ago, the mill was shut down. The company now manufactures trusses Barrett said that governments over the years have been simply making it too hard for small lumber companies to operate.
"They don't realize what they're doing, but they're basically destroying forestry and small business in Nova Scotia with all their rules and regulations, Barrett, 72, said. "There are so many of them coming, they're coming from environment, labour, DNR and transportation."
The Barrett family has 65 kilometres of logging roads, and one of Barrett's biggest frustrations is how costly it has become to build them.
"The forestry roads, when they made the rules so strong that it costs more to build an extraction road than what the timber's worth, there's something wrong," he said.
Dexter said Friday that he was not aware of Barrett's complaints, and he said he's not aware of anything his government has done to make life more difficult for anyone working in the forestry sector.
Barrett said he's met with the leaders of the provincial Liberal and Progressive Conservative parties, and is waiting to see if he will get a meeting with Dexter.
Source: CBC News
April 1, 2011 – CBC News
A Nova Scotia businessman with more than 60 years experience in the forestry sector says government rules and regulations are slowly killing his industry. David Barrett, of Barrett Lumber Company in Beaver Bank, has written a letter to Premier Darrell Dexter and other political leaders outlining his frustrations.
Over the past few years, Barrett said, his company has seen its workforce shrink from 75 to 40 people.
"I'm angry and the purpose of this letter is to bring the issues to the table, to at least have them discuss it so that they know when they pass a law, they better damn well look at the end result, because there won't be anybody in Nova Scotia working in the forest," he said Friday.
The Barrett family has been in the lumber business since 1926. Through the years the mill grew into one of the biggest in the area. But three years ago, the mill was shut down. The company now manufactures trusses Barrett said that governments over the years have been simply making it too hard for small lumber companies to operate.
"They don't realize what they're doing, but they're basically destroying forestry and small business in Nova Scotia with all their rules and regulations, Barrett, 72, said. "There are so many of them coming, they're coming from environment, labour, DNR and transportation."
The Barrett family has 65 kilometres of logging roads, and one of Barrett's biggest frustrations is how costly it has become to build them.
"The forestry roads, when they made the rules so strong that it costs more to build an extraction road than what the timber's worth, there's something wrong," he said.
Dexter said Friday that he was not aware of Barrett's complaints, and he said he's not aware of anything his government has done to make life more difficult for anyone working in the forestry sector.
Barrett said he's met with the leaders of the provincial Liberal and Progressive Conservative parties, and is waiting to see if he will get a meeting with Dexter.
Source: CBC News
Paper Excellence buys Northern Pulp
March 31, 2011 – The Montreal Gazette
MONTREAL - Paper Excellence, part of the giant Asia Pulp and Paper Co., has bought Northern Pulp Nova Scotia and Northern Timber, promising to maintain the mill's 230 jobs and softwood pulping operations.
Asian Pulp and Paper, part of Indonesia's Sinar Mas conglomerate, moved into Canada almost two years ago, seeking low-cost captive sources of pulp for hungry Chinese and other Asian markets. It has restarted the mothballed Mackenzie mill in British Columbia and bought the shell of Domtar Corp.'s Prince Albert mill in Saskatchewan for conversion to dissolving pulp. It has another pulp mill in Saskatchewan and recently bought two Tembec pulp mills in France.
Northern Pulp's top-quality long-fibre softwood pulp for papermaking will make an ideal fit with Paper Excellence Canada's other operations, vice-president Ed Roste said.
"The Northern Pulp team will continue to run the mill and its timber operation without any job impact," Roste said.
He did not disclose the price paid, but Northern Pulp is getting a $28-million federal grant to reduce emissions and improve overall environmental performance.
Source: The Montreal Gazette
March 31, 2011 – The Montreal Gazette
MONTREAL - Paper Excellence, part of the giant Asia Pulp and Paper Co., has bought Northern Pulp Nova Scotia and Northern Timber, promising to maintain the mill's 230 jobs and softwood pulping operations.
Asian Pulp and Paper, part of Indonesia's Sinar Mas conglomerate, moved into Canada almost two years ago, seeking low-cost captive sources of pulp for hungry Chinese and other Asian markets. It has restarted the mothballed Mackenzie mill in British Columbia and bought the shell of Domtar Corp.'s Prince Albert mill in Saskatchewan for conversion to dissolving pulp. It has another pulp mill in Saskatchewan and recently bought two Tembec pulp mills in France.
Northern Pulp's top-quality long-fibre softwood pulp for papermaking will make an ideal fit with Paper Excellence Canada's other operations, vice-president Ed Roste said.
"The Northern Pulp team will continue to run the mill and its timber operation without any job impact," Roste said.
He did not disclose the price paid, but Northern Pulp is getting a $28-million federal grant to reduce emissions and improve overall environmental performance.
Source: The Montreal Gazette
International Paper to buy 53.5% in AP Paper for $257 m
March 31, 2011 – Business Line
International Paper on Tuesday announced signing an agreement to acquire 53.5 per cent stake in Andhra Pradesh Paper Mills Ltd from Mr L. N. Bangur, his family members and affiliates. It will pay approximately $257 million in cash with additional $62 million non-compete payment to the sellers (totalling Rs 1,435.5 crore).
The US company will also launch a mandatory public offer to acquire up to an additional 21.5 per cent of the outstanding shares of APPM for approximately $104 million (Rs 468 crore) in cash, thereby taking its total stakeholding in the company to 75 per cent of the outstanding shares through these transactions, subject to mandatory norms.
According to filings with the stock exchanges, as of December 2010, APPM promoters (Bangurs and others) hold 53.46 per cent stake with foreign institutional investors (0.91 per cent), domestic institutions (20.45 per cent) and others (25.12 per cent). On Tuesday, APPM shares ended 6.75 per cent higher at Rs 196.80 on the BSE, notching up huge volumes.
According to International Paper, the share purchase and public tenders are likely to be completed by the third quarter of 2011, subject to regulatory approvals, including from SEBI, the RBI and, if applicable, the Competition Commission of India.
APPM has two mills with a combined capacity of 250,000 tonnes of uncoated freesheet paper annually, employing about 2,500 people and a turnover of Rs 650 crore. The mother plant is located at Rajahmundry and unit two is based at Kadiam, about 17 km away, both in coastal Andhra Pradesh and known for nurseries. The company recently had completed a Rs 635-crore modernisation and upgradation recently.
International Paper believes that this investment would be positive for employees and their communities, customers, shareholders and the state of Andhra Pradesh.
Growth promise
Mr John Faraci, Chairman of International Paper, said: “APPM is an excellent platform to grow with the Indian paper and packaging markets. Both APPM and the paper and packaging industry are growing at substantial rates. We believe the technical expertise can accelerate that growth and create value for customers and APPM shareholders.”
Mr L. N.Bangur, Executive Chairman, Bangur Group, in a statement, said: “We have built a strong business in India and the next phase of growth requires a different set of resources and capabilities. International Paper is the right company to take the business forward and deepen maturity of the sector in India.”
Mr Paul Brown, President, IP Asia, said, “The Indian market is one of the fastest growing for paper and packaging in the world, growing at 8 per cent annually. India has 15 per cent of the world's population, but consumes less than 2 per cent of the world's paper. The rapid economic growth, combined with advantages in education infrastructure and the burgeoning middle-class will bolster the growth of paper consumption in India over the next several years. APPM presents an opportunity to enter growing market via an established company with good assets, access to fibre and brands, where our global operating experience can be advantageous.”
Source: Business Line
March 31, 2011 – Business Line
International Paper on Tuesday announced signing an agreement to acquire 53.5 per cent stake in Andhra Pradesh Paper Mills Ltd from Mr L. N. Bangur, his family members and affiliates. It will pay approximately $257 million in cash with additional $62 million non-compete payment to the sellers (totalling Rs 1,435.5 crore). The US company will also launch a mandatory public offer to acquire up to an additional 21.5 per cent of the outstanding shares of APPM for approximately $104 million (Rs 468 crore) in cash, thereby taking its total stakeholding in the company to 75 per cent of the outstanding shares through these transactions, subject to mandatory norms.
According to filings with the stock exchanges, as of December 2010, APPM promoters (Bangurs and others) hold 53.46 per cent stake with foreign institutional investors (0.91 per cent), domestic institutions (20.45 per cent) and others (25.12 per cent). On Tuesday, APPM shares ended 6.75 per cent higher at Rs 196.80 on the BSE, notching up huge volumes.
According to International Paper, the share purchase and public tenders are likely to be completed by the third quarter of 2011, subject to regulatory approvals, including from SEBI, the RBI and, if applicable, the Competition Commission of India.
APPM has two mills with a combined capacity of 250,000 tonnes of uncoated freesheet paper annually, employing about 2,500 people and a turnover of Rs 650 crore. The mother plant is located at Rajahmundry and unit two is based at Kadiam, about 17 km away, both in coastal Andhra Pradesh and known for nurseries. The company recently had completed a Rs 635-crore modernisation and upgradation recently.
International Paper believes that this investment would be positive for employees and their communities, customers, shareholders and the state of Andhra Pradesh.
Growth promise
Mr John Faraci, Chairman of International Paper, said: “APPM is an excellent platform to grow with the Indian paper and packaging markets. Both APPM and the paper and packaging industry are growing at substantial rates. We believe the technical expertise can accelerate that growth and create value for customers and APPM shareholders.”
Mr L. N.Bangur, Executive Chairman, Bangur Group, in a statement, said: “We have built a strong business in India and the next phase of growth requires a different set of resources and capabilities. International Paper is the right company to take the business forward and deepen maturity of the sector in India.”
Mr Paul Brown, President, IP Asia, said, “The Indian market is one of the fastest growing for paper and packaging in the world, growing at 8 per cent annually. India has 15 per cent of the world's population, but consumes less than 2 per cent of the world's paper. The rapid economic growth, combined with advantages in education infrastructure and the burgeoning middle-class will bolster the growth of paper consumption in India over the next several years. APPM presents an opportunity to enter growing market via an established company with good assets, access to fibre and brands, where our global operating experience can be advantageous.”
Source: Business Line
Metso’s Annual General Meeting, March 30, 2011: President and CEO Matti Kähkönen’s review
March 30, 2011 – Metso Corporation
At Metso Corporation’s Annual General Meeting starting today at 3:00 pm, President and CEO Matti Kähkönen reports that the development of Metso’s operating environment during the early part of the year has continued in line with the company’s expectations.
”In conjunction with the publication of the financial statements on February 3, 2011, we estimated that the gradual recovery will continue in most of our customer industries this year. The development of the markets supports this view: the beginning of the year has been favorable for us in terms of new orders”, President and CEO states.
”During the first months of 2011 our services business has developed well due to the improving capacity utilization rates of our customers. What is more, our customers have made decisions on some larger projects”, Matti Kähkönen comments.
”Uncertainties in the generally favorable outlook are created by e.g. the fragility of economic recovery in developed markets and stronger inflation pressures. On the positive side, demand in emerging markets remains steady, the outlook in the mining industry continues to improve and the demand for services is expected to remain strong in all our businesses.”
Matti Kähkönen continues: “Already today Metso’s position in the markets is strong and our financial situation and strategy are on solid footing. We are well positioned to benefit from the global megatrends. Favorable economic development in emerging markets not only supports the demand for metals, energy and other infrastructure solutions, and paper and board, it also offers us excellent opportunities. Our strong position in services is based on long-term customer relationships and our extensive installed equipment base, and we are continuously developing our services portfolio. Global concern about environmental issues and sustainability creates demand also for our eco-efficient solutions and for the life-cycle services supporting them. So our strategic focus areas offer us excellent growth opportunities also in the future."
Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 28,500 employees in more than 50 countries. www.metso.com
March 30, 2011 – Metso Corporation
At Metso Corporation’s Annual General Meeting starting today at 3:00 pm, President and CEO Matti Kähkönen reports that the development of Metso’s operating environment during the early part of the year has continued in line with the company’s expectations.”In conjunction with the publication of the financial statements on February 3, 2011, we estimated that the gradual recovery will continue in most of our customer industries this year. The development of the markets supports this view: the beginning of the year has been favorable for us in terms of new orders”, President and CEO states.
”During the first months of 2011 our services business has developed well due to the improving capacity utilization rates of our customers. What is more, our customers have made decisions on some larger projects”, Matti Kähkönen comments.
”Uncertainties in the generally favorable outlook are created by e.g. the fragility of economic recovery in developed markets and stronger inflation pressures. On the positive side, demand in emerging markets remains steady, the outlook in the mining industry continues to improve and the demand for services is expected to remain strong in all our businesses.”
Matti Kähkönen continues: “Already today Metso’s position in the markets is strong and our financial situation and strategy are on solid footing. We are well positioned to benefit from the global megatrends. Favorable economic development in emerging markets not only supports the demand for metals, energy and other infrastructure solutions, and paper and board, it also offers us excellent opportunities. Our strong position in services is based on long-term customer relationships and our extensive installed equipment base, and we are continuously developing our services portfolio. Global concern about environmental issues and sustainability creates demand also for our eco-efficient solutions and for the life-cycle services supporting them. So our strategic focus areas offer us excellent growth opportunities also in the future."
Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 28,500 employees in more than 50 countries. www.metso.com
N.S. pulp mill sold to Paper Excellence; Greenpeace criticizes deal
March 30, 2011 – Canadian Business Online (The Canadian Press)
PICTOU, N.S. - A Nova Scotia pulp mill has been sold to Paper Excellence in a deal greeted by union members but criticized by environmentalists.
The Vancouver office of the company announced the agreement to buy Northern Pulp and Northern Timber of Abercrombie, N.S., in a news release posted today.
No figures were disclosed in the release.
The news release says the deal is "good news" for the 230 employees of the mill, and the Communications, Energy and Paperworkers Union issued a news release saying it provides job stability.
However, Greenpeace also issued a news release saying it is unhappy about the acquisition due to the firm's forestry practices.
Paper Excellence operates three mills in Canada: Meadow Lake in Saskatchewan and Howe Sound and Mackenzie in British Columbia, and is in the process of acquiring the long closed Prince Albert mill in Saskatchewan.
Source: Canadian Business ONline
March 30, 2011 – Canadian Business Online (The Canadian Press)
PICTOU, N.S. - A Nova Scotia pulp mill has been sold to Paper Excellence in a deal greeted by union members but criticized by environmentalists.
The Vancouver office of the company announced the agreement to buy Northern Pulp and Northern Timber of Abercrombie, N.S., in a news release posted today.
No figures were disclosed in the release.
The news release says the deal is "good news" for the 230 employees of the mill, and the Communications, Energy and Paperworkers Union issued a news release saying it provides job stability.
However, Greenpeace also issued a news release saying it is unhappy about the acquisition due to the firm's forestry practices.
Paper Excellence operates three mills in Canada: Meadow Lake in Saskatchewan and Howe Sound and Mackenzie in British Columbia, and is in the process of acquiring the long closed Prince Albert mill in Saskatchewan.
Source: Canadian Business ONline
Paper Recycling with
Shotton Paper
Shotton Paper
