the PPI interview

 

subsidies have been harmful to the industry in Europe.

We in the industry have to fix this, nobody else.

It is a fact that in Europe in particular, the areas of bioenergy and biofuels are becoming increasingly important as potential revenue streams in the medium to long term future of the pulp and paper industry. What is your view of this, and can you enlarge upon Stora Enso’s activities in this area?

We have a large scale liquid biofuel demo plant and are one of the most significant players in the Nordics for solid biofuels too, both for biomass and pellets. This is an interesting opportunity for us, however that takes nothing away of the need to get our traditional businesses to earn decent money.

Can you talk about your operations and future
ambitions in China?

China is the one nation that does and will account for more than half of the absolute growth in paper and board – more than the US, Europe, Latin-America combined. A very interesting opportunity indeed, however with the same fundamental demand as anywhere else: we must be able to build a sustainable competitive differentiation. Our manufacturing operations in China started in 1998 when Stora Enso bought the majority share of Suzhou fine paper mill in eastern China, which continues to produce a 240,000-tonne/yr of coated fine paper. In 2008 we started a joint venture in Dawang with Shandong Huatai Paper to produce the first supercalendered (SC) magazine paper (200,000 tonnes/yr). In addition to paper production, we own two core board plants at Hangzhou in East China and Foshan in Southeast China. Since 2002 we have been establishing tree plantations in Guangxi, South China. These plantations serve as a foundation for a possible integrated pulp and paper or board mill. A mill for recyclable products for the local market from renewable natural resources. And yes, also in China I tell the crew that if and when we decide to invest - our goal must be to build the best in the world, in all respects.

Finally, what are your long term goals for Stora
Enso, and how do you see the company’s long term
prospects?

A sustainable earnings level clearly higher than our cost of capital through clear choices and focus that

“In Europe the list of challenges is long - from overcapacity to raw material and energy availability and costs – on and on it goes”

 

allows Stora Enso to differentiate from the competition, implemented in a way where we all can be proud not only of the financial profits but also for the good we do for the planet and its people through recyclable products made from renewable resources in a responsible way. Another goal is also to have a successor for me from inside the company, who is going to be better than me – and make the tomorrow of the company always better than the day before. And hopefully win the RISI award many, many years in a row!

I truly believe that at Stora Enso we have a good opportunity to make tomorrow better for our own people and our business partners. We make great products using renewable and recyclable raw materials – products that can make a real difference for our customers, for their customers, for consumers and for the planet. How we make it all happen, how we compete, how we learn every day – that is what we are all about. This is what I would like to see as the DNA and spirit of Stora Enso, shared by all of us. PPI

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