Economics of the Pulp and Paper Industry

Transcription

1 Papermaking Science and Technology a book series covering the latest technology and future trends Book 1 Economics of the Pulp and Paper Industry Second Edition Totally updated version Book editor Magnus Diesen, M.Sc.(Tech.), Retired Executive Vice-President, Stora Enso Oyj, Finland Publisher Finnish Paper Engineers Association/Paperi ja Puu Oy Paperi ja Puu Oy

2 Table of Contents 1. Main characteristics of the global pulp and paper industry Impact of the forest industry on the economies of Finland and Sweden World paper markets Fibre demand and outlook Raw material resources forests and wood supply Raw material resources recovered paper Energy resources and consumption Structure of the global pulp and paper industry and main suppliers Financial valuation and analysis Investment decisions Economy of scale Economy of integration Currency exchange rates and risk management Future strategies for the Nordic pulp and paper industry Clossary Converson factors Index

3 CHAPTER 1 Main characteristics of the global pulp and paper industry 1 General Typical features of the pulp and paper industry Growth Technical development Globalisation Cyclical nature of the pulp and paper industry High investment rates Opportunities for the pulp and paper industry Challenges to the pulp and paper industry...15 Sources

4 CHAPTER 2 Impact of the forest industry on the economies of Finland and Sweden 1 Finland General Past and present production Exports Forest increment and drain Labour force and productivity Investments Environment Profitability Comparison to other countries Sweden General Past and present production Exports Forest increment and drain Labour force and productivity Investments Environment Comparison to other countries...30 Sources

5 CHAPTER 3 World paper markets 1 Introduction Definitions Bulk products Speciality products Specification of main paper grades Driving forces of demand Global paper demand Demand outlook for main paper grades International trade flows Price trends General Newsprint and mechanical printing paper Woodfree printing and writing papers Containerbord and cartonboard Price stability Sales and marketing of paper Criteria for establishing new capacity...49 Sources/References

6 CHAPTER 4 Fibre demand and outlook 1 Introduction Consumption trends Production trends Pulp industry structure Pricing...62 Sources/References

7 CHAPTER 5 Raw material resources forests and wood supply 1 Introduction Forest area Forest harvest and use of wood Certification Wood supply Terminology Europe Canada United States Other areas Plantations South America Asia and Oceania Wood costs Definitions Regional average costs...76 Sources/References

8 CHAPTER 6 Raw material resources recovered paper 1 Introduction Definitions Global recovery and supply Trade flows Recovered paper prices Recovered paper users and suppliers...88 Sources

9 CHAPTER 7 Energy resources and consumption 1 Introduction Global energy outlook Carbon dioxide emissions Kyoto protocol Electricity consumption of the pulp and paper industry Paper Pulp...96 Sources

10 CHAPTER 8 Structure of the global pulp and paper industry and main suppliers General Technical structure based on production capacity Chemical pulp Paper and board Production structure by grade and region Global paper machine asset quality Average paper machine size vs. state-of-the-art machine size in North America and Europe Main suppliers and companies Total paper and board Main suppliers by grade Changing industrial structure General Major mergers and acquisitions Global mergers and acquisitions activity Driving forces for mergers and acquisitions in the pulp and paper industry Mergers and acquisitions in the pulp and paper industry Characteristics of major pulp and paper industry companies General Financial Results Investment behaviour and structural changes Sources

11 CHAPTER 9 Financial valuation and analysis 1 Introduction and principles Definitions Business performance Valuation Factors affecting ROCE ROCE development in selected countries Investment behaviour in selected countries Management accounting Definition Analysis and examples Factors affecting production rate Evaluation of development investments Distribution of economic information to the operating floor

12 CHAPTER 10 Investment decisions 1 General Capital expenditure projects Definition of investment categories Capex planning process Profitability and competitiveness criteria Project implementation Criteria for selecting new equipment Mergers and acquisitions (M&A) Features of M&A transactions M&A processes References

13 CHAPTER 11 Economy of scale 1 Definition and description Economy of scale of a pulp mill Economy of scale of a paper mill Economy of scale in two-line paper mills Minimill concept Economy of scale of speciality paper mills Future development of economy of scale

14 CHAPTER 12 Economy of integration 1 Definitions Financial integration Degree of financial integration Main objectives of financial integration Streamlining of production More efficient use of investment funds Lessening the impact of cyclical variations Vertical integration Two common development strategies of the pulp and paper industry

15 CHAPTER 13 Currency exchange rates and risk management 1 Currency exchange rates Introduction Definitions Historical aspects of the Western monetary system Factors affecting exchange rates Purchasing power parity Conclusions Risk management Introduction Features of risk management Hedging methods and instruments Case examples

16 CHAPTER 14 Future strategies for the Nordic pulp and paper industry 1 Global trends Trends in Europe Future trends Conclusions