BANGKOK, Thailand: From June 6-8, 2018 the Asian Paper & Tissue World Bangkok 2018, the first pan-Asian event of its kind will bring together paper, packaging and tissue product makers and suppliers from around the world under one roof in the Thai capital. The event’s overarching theme will be Shaping Success: Strategies for Sustainable Growth in Paper, Packaging and Tissue and aims to address the key factors influencing the industry’s direction.

Held at BITEC Bangkok, the Asian Paper and Tissue World 2018 exhibition and conference will attract some of the world’s largest and most esteemed manufacturers from over twenty different countries. This year, they will include Valmet Co., Ltd. (Thailand), Xiamen C&D Paper & Pulp Co., Ltd. (China) and AkzoNobel Specialty Chemicals (Sweden) among others.

Apart from the participation in the exhibition, these companies’ senior representatives will also join in this year’s Senior Management Symposium on 6 June. During these high-level seminars, key performance variables which define success in the industry will be analyzed. They will include topics such as sustainable growth and innovations, fiber resources, trends and outlooks in the corrugated carton industry, machine conversions, IoT, as well as cutting-edge paper and board multi-client studies. Featured speakers on these subjects are Mr. Wichan Jitpukdee, President of TPPIA, Thailand; Mr. Haidong Wang, Head of Strategy at Xiamen C&D Paper & Pulp Co., Ltd., China and Mr. Jukka Luoto, Paper Technology Manager – Asia Pacific Area for Valmet Co., Ltd., Thailand.

Following the symposium, the New Applied Technology Sessions on 8 – 9 June will take place. Key industry players will discuss matters such as practical solutions to save costs on the newest fiber trends, reduction of water usage in ECF bleaching, nanotechnology as well as Industry 4.0 to increase production efficiency and product quality. Speakers include Mr. Mikko Jalava, Sales Director at ABB Oy, Finland, Ms. Eva Wackerberg, Applications RD&I Manager at AkzoNobel Specialty Chemicals, Sweden and Dr. Mahendra Patel, Technical Adviser with Indian Agro and Recycled Paper Mills Association, India.

“Today, tissue is ascendant and the need for innovative packaging is boosted by evolving consumer habits. Graphics and other specialty areas will continue to gain importance. The Asian Paper and Tissue World 2018 will explore the factors which will determine the industry’s trajectory and how to optimize manufacturing processes and the use of resources to achieve sustainable growth, create high-quality products and save costs. By bringing together the industry’s top players, the conference offers attendees an exclusive platform for learning and business exchange in this fast-changing and growing industry,” says Agnes Gehot, deputy event director of Asian Paper & Tissue World, UBM Exhibition Singapore.

Asian Paper and Tissue World Bangkok 2018 is supported by the following associations:

• The Thai Pulp and Paper Industries Association (TPPIA)
• Australian and New Zealand Pulp and Paper Industry Technical Association (APPITA)
• The Association of Indonesia Pulp and Paper Industries (APKI)
• Chinese Taipei Paper Industry Association (CTPIA)
• Indian Agro & Recycled Paper Mills Association (IARPMA)
• Japan Technical Association of the Pulp and Paper Industry (JTAPPI)
• Myanmar Pulp and Paper Industry Association (MPPIA)
• Malaysia Pulp and Paper Manufacturers Association (MPPMA)
• Technical Association of the Pulp and Paper Industry of Southern Africa (TAPPSA)

Visitor and conference registration is now open. For more details, visit www.asianpapershow.com.

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For further information and images please contact:
Karin Lohitnavy
Midas Communications International Co, Ltd.
E-mail: karin@midas-pr.com
Phone: +66 86 044 2145
Website: www.midas-pr.com

About Asian Paper – Established since 1992
Asian Paper is the largest ASEAN event serving the global pulp, paper, packaging and related industries. It gathers key industry players to meet face to face and discuss the latest innovation, industry trends and offerings of cutting-edge products and services through its exhibition and conference. The Asian Paper exhibition focuses on the Paper industry, covering the entire value chain, from pulp, chemical, adhesive, machinery, parts, converters to paper and packaging products and services across the three-day event.

About Tissue World – Established since 1993
Tissue World is the leading global event serving the tissue industry worldwide. With trade shows in Istanbul, Milan, Miami, São Paulo and Bangkok, it offers an integrated platform consisting of exhibitors, conferences and a magazine providing an unmatched offline and online place to do business, exchange ideas and learn, all year around.

About UBM
UBM Plc. is the largest pure-play B2B Events organizer in the world.  In an increasingly digital world, the value of connecting on a meaningful, human level has never been more important. At UBM, our deep knowledge and passion for the industry sectors we serve allow us to create valuable experiences where people can succeed. At our events, people build relationships, close deals and grow their businesses. Our 3,750+ people, based in more than 20 countries, serve more than 50 different sectors – from fashion to pharmaceutical ingredients. These global networks, skilled, passionate people and market-leading events provide exciting opportunities for business people to achieve their ambitions.

Italian tissue producer Paperdi has started up a Toscotec TT SYD-16FT at its Cartiera di Pietramelara mill.

The second-generation TT SYD-16FT replaced a cast iron Yankee.

The scope of supply included a complete Yankee steam and condensate system.

Located in the province of Caserta, the Cartiera di Pietramelara mill has been producing tissue products including industrial rolls, kitchen rolls, toilet jumbo rolls and towel tissue, with the household brand Soavex and the professional brand paperdi since 1989.

It has an annual production of 45,000 tonnes.

http://voith.com/corp-en/forming-press-dryer-fabrics.html#99610

South Africa’s Twinsaver Group has started up an AHEAD-2.0S tissue machine at its Kliprivier operations in Gauteng.

PM5 is a turnkey project supplied by Toscotec and is equipped with a second-generation TT SYD-15FT Steel Yankee dryer with a diameter of 15ft.

The line will produce premium quality super-soft toilet tissue to supply the local and export markets, with a total production of over 30,000tpy.

It is part of a R580m investment announced by the branded tissue manufacturer last year.

The scope of supply included the stock preparation system, the AHEAD-2.0S tissue line, the electrification and control systems, complete plant engineering, erection, and supervision for erection, commissioning, training and start-up.

Twinsaver Group is a leading South African manufacturer and distributor of branded tissue products, including toilet tissue, facial tissues, roller towels, house and leisure and AfH products.

Latin American tissue producer Sepac has started up an XcelLine tissue machine in Brazil.

Supplied by Voith, TM6 is based at the company’s Mallet plant in Paraná and will be used to produce tissue paper for sanitary products.

It has a design speed of 2,000m per minute and is able to produce 110 metric tonnes of paper per day.

The scope of supply included the entire machine which was fitted with a MasterJet Pro T headbox, a CrescentFormer, a NipcoFlex T shoe press, an EvoDry Y Steel plate Yankee cylinder, a high-efficiency EcoHood T hood and a MasterReel winder.

The project’s main features are the NipcoFlex T shoe press and its 4.8m Steel plate Yankee cylinder, which the supplier said enables the machine to consume up to 20% less thermal energy.

It is part of a growth strategy by SEPAC, which is focused on manufacturing tissue paper from virgin cellulose fibres and increasing its production capacity to 180,000tpy, making it one of Brazil’s largest tissue manufacturers.

Over the last ten years, Voith has supplied four tissue machines to SEPAC.

Sepac is one of Latin America’s largest tissue paper producers and has 40 years of experience in the domestic and international markets.

Headquartered in the state of Paraná, the company is a market leader in tissue paper for sanitary products in Brazil’s Southern region.

Its towels, napkins and toilet papers are marketed in all regions of Brazil and the Mercosur countries under the Duetto, Paloma, Maxim and Stylus brands.

In 2017, Sepac also joined the personal care segment with the launch of its BabyBoo disposable diapers brand.

More than 20 industry experts will examine the future trajectory of the pulp, paper and related industries under the theme: Shaping Success: Strategies for Sustainable Growth in Paper, Packaging and Tissue, during Asian Paper & Tissue World Bangkok 2018 Conference, 6-8 June.

The high level Senior Management Symposium on the first day provides invaluable insights on performance variables which define sustainable growth specifically in Asia. This includes a look at packaging trends, impact of e-commerce, growth in tissue, fiber resources, advanced technologies, machine conversions, and IoT as well as key findings from a multi-client study for paper and board.

On the following days the New Applied Technology presentations will be divided over four key sessions: Fibers: Trends, Outlook and Processes – Industry 4.0.: A revolution in the paper industry – Process Enhancements and Tissue Technologies. These informative sessions provide new learnings on technical enhancement.

To register for the conference, please visit: http://www.asianpapershow.com/register-conference
To download the Conference Brochure, please visit: http://www.asianpapershow.com/confbrochure

The global packaging machinery market is estimated to be worth €35.6bn in 2020. Here, our Technical Theme brings you a selection of some of the most recent innovations and the trends behind them. TWM spoke to packaging machinery manufacturers Macdue, Stax Technologies and Fabio Perini and asked them to explain why they believe their product is breaking new ground. A TWM report.

Global packaging market set for huge gains
Advances in Asia (or developing nations) are providing a new surge to the already impressive value of the world packaging market – projected to reach €984bn by 2024. By Macdue.

The value of the global packaging market in 2014 was €726bn. By 2020 it is expected to reach €893bn fired by an AAGR of 5%, and that projected figure of €984bn will round off a decade of unprecedented growth.

The sophisticated machinery sustaining this advance had a market value of €32.1bn in 2015, and is itself projected to increase to €35.6bn by 2020. Much of the impetus for growth is coming from gains in  developing nations. By 2020, demand for packaging machinery will be particularly strong in Asia, Africa and Oceania with an increase of 7.1%.

Asia in particular is forecast to be the biggest market, progressing from 42% of market share in 2015 to nearly 45% in 2020, ahead of Eastern Europe. It is followed by Latin America, which is expected to see an increase of 5.6% in demand for packaging machinery products.

At 5.6%, wrapping machines are forecast to have the highest growth rate over the period due to growth of the flexible packaging market, ahead of filling machines at an increase of 5.2% and labelling machines with an increase of 5%.

The value of demand in Europe for packaging machinery:
2015: €9.2bn
2020: €9.6bn.

The value of the production of packaging machinery in Europe:
2015: €16.3bn
2020: €18.3bn.

Based on the above, the demand for packaging machinery for tissue products will be affected by a strong demand for automation due to the increasing commercialisation of industrial tissue products in the supermarkets.

Based on this trend, Macdue is investing R&D efforts to create packaging machines that are suitable to pack tissue products both with shrunk polyethylene film for transport, and shrunk polypropylene with printed film reels for the supermarkets.

Where there are large volumes of products (but if they are of low value as is possible for tissue products), intervening in the automation of packaging processes can help give tissue mills important margins of time and resource optimisation. Macdue is aligned with the market having developed a strong specialisation in the design and production of complete automated packaging lines, from long saw to the palletiser.

Sources:
• The Future of Global Packaging to 2020: https://goo.gl/H6WL77.
• Packaging: Market and Challenges in 2016: https://goo.gl/6gd93T.
• Global Trends Impacting the Market of Packaging Machinery. PMMI. January 2016: www.pmmi.org/research.
• Europe Packaging Machinery Market Assessment 2017.PMMI, May 2017: https://goo.gl/q6FF1e.

This article was written for TWM’s Packaging Technical Theme by Macdue.

Charlie is a Bristol, UK-based food blogger and content editor who also runs a pop up pudding (dessert) club. When she isn’t eating or writing she can be found in the pub enjoying a beer or two. See her blog at: https://bedsitbonnevivante.com/

As a keen homecook I am usually not that far away from some sort of spillage disaster. Each spill has its own problems, fatty oil or butter tends to smear, sugar gets everywhere then disintegrates to grainy paste when you try and wipe it up with anything wet, and liquid takes more absorption power than you ever realise.

To combat all of this, kitchen roll is always on hand in my house. I have never been keen using a sponge on my surfaces due to the sort of nasties that might be lurking on it so, a few sheets and a decent kitchen cleaner is all I need to return my kitchen to a decent state after throwing food around in another creative whirlwind.

I always look out for recycled paper with the highest sheet count so my money goes further (I spill a lot!) and my conscience is clear when I use it.

I also love that kitchen roll can be compostable, unlike the kitchen (and bathroom) wet wipes that clog water pipes and sewers. I am happy to throw used paper in the bin and not worry about impacting the environment negatively.

As a food blogger, I also take photos of my cooking successes (and sometimes failures!) and that all important smarten up before I whip out the camera phone is easily done with a sheet of wet towel.

Napkins also serve a double purpose, they can make a photo pop when arranged under a dish or cutlery, and provide a great makeshift notepad when dining out for a restaurant review (or something to doodle on if your date is incredibly boring!)

Like a jaunty tie, you can tell a lot about someone by their paper napkins… life is far too short for white or black if you ask me. My household also goes through plenty of toilet roll; while wet wipes provide a feeling of freshness, due to the ambiguity of whether these are actually flushable and if they’re causing problems with the water sewerage systems down the line, I don’t use them that frequently.

To counteract this I like to spend a bit extra on very nice toilet paper. I just came back from Canada and was dismayed at how thin and sad the toilet paper was there and was grateful to come home to the sort of paper that is high quality and that feels almost like a duvet. As for my kitchen, I like a paper that is the thickest I can find and that’s been infused with balms and oils to make it as luxurious as possible.

Like the planet, we only get one chance  at this so we should try and look after it and ourselves as much as we can! Luckily I have access to the paper products I need to do both.

Shoppers’ expectations today are sky high. With a revolution in retail well underway, the industry needs to inspire and uplift … to redefine the consumer experience. By Patrick Boateng, leader, global sourcing, The Kroger Co.

At Tissue World Miami in March, The Kroger Co’s Patrick Boateng discussed the key drivers that have created a revolution in the retail industry. Here, TWM summaries his talk as well as an extract from his recent article for TWM’s special supplement publication “Focus Report: USA”.

Tissue World Miami: summary 
The sky-high expectations of today’s consumer have created a revolution in the retail industry, driving changes at an unrelenting pace. Key disruptive forces include:
• More consumer buying options;
• Technology has created more choices for the consumer;
• Channel fragmentation;
• Changes in customer expectations;
• Accelerating pace of competition;
• Intensified competition across traditional channels and with new market entrants.

“Re-stock Kroger Plan” 
Purpose: feed the human spirit.
Vision: serving America through food  inspiration and uplift.
Redefining grocery customer experience: data and personalisation, digital, space optimisation, our brands, smart pricing.
Partner for customer value:  infrastructure and technology upgrades, alternative revenue streams, costs and cost of goods sold.
Develop talent: associate experience, investing in and retaining store associates, high performing leaders  and teams.
Live our purpose: zero hunger/zero waste, our culture and values. Create shareholder value: free cash  flow, operating margins.

Redefine grocery customer experience
To create different experiences: prices are good, prioritising saving money. Sub-dimensions: prices paid/spend to save/retailer switching. Space optimisation: efficiency and effectiveness with the use of  front end and pallet drops.

Kroger is selling more of our brands to serve both our customers and our bottom line. Our brands are by far the largest brands sold in our stores and would be ranked #140 on the Fortune 500 list.

Since 2011, we have seen a 37% sales growth to $20.5bn. Smart pricing: we will not lose customers because of price. We have invested nearly $4bn in price since 2001.

Our goals: zero waste company by 2020, plus zero food waste by 2025. Advocate for public policy solutions. Join forces with new and long-standing partners.

Partner for customer value 
Front-end transformation project
• Redesign store front-end to maximise self-check-out (SCO);
• Scan, bag, pay & go (SBPG) + SCO with a goal to increase materially beyond today’s performance;
• Technology Innovation: robotics and AI will complement our sensor network.

Create shareholder value 
We use 84.51degree science to balance inflation.
Value: Cost transparency

Innovation/quality:
• “Big deal!” (Big packs)
• Focus on our brand products that deliver branded quality.

Partner for customer value:
• Relationship and trust;
• Collaboration;
• Share benefit;
• Service.

While larger sizes or club packs are growing across all segments due to e-commerce, the American market is also seeing a steady increase in private label products with premium branded quality across  channels. Below is an extra from Patrick Boateng’s interview for TWM’s “Focus Report:USA” supplement magazine.

FR/1: What trends are you seeing in the American retail market in terms of tissue?
“Larger sizes or club packs are growing across all segments due to e-commerce. We’re also seeing an increase in private label products with premium branded quality across channels. There’s a growing consumer base that places a high value on cost and quality.”

FR/2: Do you see more and more private label products in America? 
“Yes, because major retailers are using private label as a technique to provide value to their customers. Private label products rank well among consumers. UltraPremium products for example are no longer exclusive to National Brands. Once retailers identify features their customers value most, products are redesigned accordingly to provide value to their customers without sacrificing the quality of the products.”

FR/3: How are economic conditions impacting the choice of tissue purchasing in America? 
“I would like to answer this question by saying that in spite of the high consumer confidence level, there are more consumers that would like to shop based on personal choice. This often depends on one’s income level. Also, some consumers would like to purchase lower cost items to save money so they can spend in other discretionary areas. Good deals appeal to customers all the time but especially during harsh economic situations. The industry has become addicted to deals and promotions.”

FR/4: With e-commerce becoming increasingly popular, what trends do you forecast? 
“Investment in promising multi-channel platforms, infrastructure and technology advancement, more personalised marketing, use of data to create enhanced customer experience, and more customer-centric products that are based around value, affordability and authenticity.

“Digital and online marketing is an ever-changing key driver for the tissue and retail sectors. Retailers are using advanced technologies and online to better serve customers. Supply chain transparency and value stream efficiencies are vital; for example, in order to ensure transparency of its supply chain, Target Supermarket has published its entire global suppliers on its website. This type of strategy in the retail market is having a substantial impact on north America’s Tissue Paper Category.”

FR/5: What does Amazon.com’s purchase of Whole Foods mean for the tissue market? 
“The purchase will intensify the already highly competitive market. The net effect is pressure on price which will force third party suppliers in the industry, including tissue suppliers to be more efficient not only in the delivery of service but find sustainable ways of slashing cost.”

Rising numbers… in population, tourism, retail stores, personal income and a strong economic performance gives the Bangkok-based manufacturer confidence for the future. A TWM report.

TWM/1 What tissue markets do you operate in in Thailand and is there much growth?
“Berli Jucker Cellox operates in all markets and we’re seeing growth across all of the tissue markets in Thailand. In particular, AfH and private label are playing a significant role.

“We produce toilet paper, facial tissue, napkin or multi-purpose paper. With a commitment to increase quality, the company has expanded production lines to be the leader in the tissue market by using advanced technology machines from European countries.

“With advanced technology and equipment from the best manufacturers in the world together with systematic production line, we make paper that can be manufactured to meet customers’ needs about size, length, perforate mark, fragrance and pattern. We also have ISO 9001, ISO 14001, OHSAS18001 certifications and are allowed to use the green label on approved products.

“The average market growth in Thailand is around 4.7%, while usage per capita is still low compared to other developed countries. This is largely because more and more people in Thailand are having better  access to disposable income and so buying more and better-quality products.

“The raising of income per capita and numbers of convenience stores are also changing the life style of new generations, which is resulting in higher demand of tissue consumption. We’re also  seeing more and more demand for environmentally-friendly products popular in Thailand.”

Investment potential: more Thai people have better access to disposable income, and so demand for higher-quality products is increasing

TWM/2; How many mills do you have in Thailand?
“We have two mills in Thailand with production capacity of 50,000tpy, providing products for customers both locally and internationally.

“The market here has four key players – Kimberly-Clark, RiverPRO, Wang Paper, and CPC – with approximate total capacity of 150,000tpy.

“Currently we are exporting to neighbouring countries i.e. Lao, Cambodia and Myanmar.”

TWM/3 What are the key trends you’re seeing in the Thai and Asian tissue market? 
“We are seeing more and more good potential due to the increasing number of the population as well as strong economic growth. Growth in the tourism business also means that tissue consumption is significantly and steadily increasing.”

Commitment to quality: the company has expanded its production lines

TWM/4 What are the key tissue packaging/ packaged product trends you’re seeing in Thailand and Asia, and how are you responding to this? 
“The facial and napkin tissue in soft packaging are growing significantly. However, toilet roll tissue still shares the major portion in total market.”

TWM/5 How is the Thai tissue market influenced by China’s? 
“Tissue from China doesn’t impact the Thai market very much. The Thai market prefers quality and a variety of products.”

TWM/6 What plans do you have to grow and  invest in the future?
“To keep up with the growth in demand we are seeing in Thailand, we are planning to expand capacity in the next few years.”

Export potential: the company is exporting to neighbouring countries

Half the population of 68 million doesn’t use tissue. But a boom in tourism, urbanisation and an ageing society is changing that, explains Dr. Sumrit Yipyintum, MD of RiverPRO.

Report by Helen Morris, Senior Editor, Tissue World magazine.”

TWM (unwittingly) arrives in Bangkok on the first day of Songkran, the country’s fabulous water festival that sees thousands of locals and tourists taking to the streets with giant colourful water guns and buckets brimming with cold water.

The festival celebrates the Thai New Year by encouraging everyone to drench each other, and passers-by, with water. It is impossible not to get involved, even when not equipped with a giant water gun or cold water bucket.

Great fun apart, the festival signifies something more deeply reassuring for the country. Walking around Bangkok with its thousands of tuktuks transporting the revellers past magnificent temples and pop-up food stalls, the street level atmosphere is underpinned by a widespread sense of optimism and stability.

While the current political situation continues to be unpredictable, May 22, 2018 will mark four years since the Thai military took control of the government in a coup.

Since then, the economy has been slowly strengthening, as has consumer confidence. And crucially for the country and its tissue industry, attendance at events such as Songkran also signals the return of tourism, a big source of growth.

TWM is in Bangkok to meet Dr. Sumrit Yipyintum, the managing director of  RiverPRO, the first tissue mill to operate in Thailand, and now a leading force. Speaking in excellent English, he is friendly,  umorous, and well-informed, talking at length about the Thai and regional tissue markets.

RiverPRO’s Saraburi plant: the company’s second plant is home to Andritz and Valmet tissue machine and converting facilities

RiverPRO is a family-run company,  established in 1966 when it faced an extraordinary challenge: “Tissue was considered a luxury product then. So to introduce tissue to the market we had to educate people so that it became a habit.”

That traditional early usage continues: “Today in Thailand, toilet paper is used in a variety of ways, including in the bedroom as facial tissue, and also on the dining room table. My parents helped to introduce the idea that it can be a very practical and multi-tasking product.”

Today, diversifying tissue products and usage is seen as a key step. With a population of 68.86 million people and 5-6% growth in tissue demand year-on-year, Thailand’s tissue market has the potential. And yet … only one international player operates here, Kimberly-Clark, naturally as the market leader.

Second is local player Berli Jucker Cellox, and third RiverPRO. All have two sites each and in total claim 95% of Thailand’s tissue market. The only other player is Wang Paper, which has one site.

Consumption per capita is low, and it is in the anticipated adoption of new tissue habits as the country becomes increasingly urbanised and aged, plus the significant return of tourist numbers, that growth is projected.

Dr. Yipyintum pinpoints one of the challenges: “The people in rural Thailand don’t use tissue, it’s simply not a habit they have as they still use water. I’d say more than half of the population here isn’t using tissue.

“However, the Thai’s lifestyle is changing, people are looking for more convenient and hygienic ways as they become more urbanised. So there’s plenty of opportunity for the industry to  grow.”

The country is also ageing fast. According to the Bank of Thailand, by 2022 it will be the first developing country to become an “aged” society, with more than 14% of its population over 65.

How will the country’s tissue industry react? Dr. Yipyintum says it will be to invest and diversify products to respond to the consumer’s need.

Above: Dr. Yipyintum’s grandfather and father at the grand opening of the factory in 1966

RiverPRO’s first tissue mill is located in the south of Bangkok,  while the second is in the province of Saraburi, around 80km north of Bangkok. In total, they produce around 165tpd of toilet paper, facial tissue, paper towels and napkins, as well as the “mini napkin”, a pink 10x10cm product that RiverPRO initiated into the Thai market. “We reduced the size, and made it cheaper to penetrate the market,”  he adds.

In 2014, the company boosted its production capacity by investing in a 25,000tpy TM at the Saraburi site. Originally manufactured by Valmet, it has a width of 3.1m and an operating speed of 1,200m/min.

The company also has a 2.7m Andritz line with a total capacity of 54,500tpy, as well as three converting lines for toilet rolls and kitchen towels, three converting lines for industrial rolls, a converting line for napkins, and 10 folding machines for interfolded products, facial tissue and hand towels. Around 55% of the company’s production is from recycled paper while the rest is made from virgin fibres.

The company’s products are sold into three different markets: 50% of its production is in consumer, 40% in the AfH market, and the remaining in private label.

Following the entrance of large hypermarket chains into Thailand and a vast expansion in the number of their stores over last 15 years, private label products have been introduced into the market and are becoming increasingly popular: “Private label is currently around 800 million baht a year, around 10% of the total industry. We are a main producer and work closely with the stores to provide better services for their growth, but its growth will be slower than in the past.”

Thailand’s tissue pioneers: Dr. Sumrit Yipyintum celebrates the company’s 50th Anniversary

Dr. Yipyintum has also completed a PhD in organisation’s sustainable development, which he is implementing at the company’s sites. “We have set our very long-term target for RiverPRO,” he says. “We  ould like to celebrate our 100th year of establishment. Therefore, in order to successfully hand over the company to the next generation, these three parties have to be happy; employees, customers and communities, and shareholders.”

The company has committed to its shareholders and employees, as well as to the preservation of the environment. The wastewater treatment system at its Samutprakarn plant allows the mill to recover up to 98% of the water used during the manufacturing process. In addition, the mill also offers its expertise in water treatment to the community to clean up the water in the canal, which is located at the back of the site.

An increased popularity of environmentally-friendly products in Thailand also holds potential: “I think many consumers still believe that the tissue industry has to cut down forest in order to make the product. They are concerned that by buying tissue products, they are compromising their hygienic and environmental concerns. So we are trying to promote recycled products so that the consumers don’t feel guilty about using them.

Eco-friendly tissue: the company’s Pinn Natural is made from specially sourced pre-consumed waste paper

We want to initiate this mindset and lead the market. We were the first company to introduce unbleached products here with our Pinn Natural brand for consumer market and RiverPRO brand for the AfH market.”

In the next few years, Dr. Yipyintum plans to invest in training the company’s 800 employees as well as invest in any technologies that can help it to improve its production cost. “Our marketing strategy is to offer value-for-money products, even though the industry is facing price volatility,” he adds.

“We will have enough tissue capacity for what we need, so for the next few years we will focus on looking at any technologies that can help us use energy and resources more efficiently to improve productivity and reduce production costs, including an automatic converting line, while fostering our employee capability by training and development.”

As the company is facing increased costs, especially from raw materials, Dr. Yipyintum says it’s quite a tough situation: “There has been a lot of price pressure, and it’s impossible to pass them onto customers so we have to absorb these costs. It’s very difficult to know which way pulp costs will go, especially from China and waste paper.

“Thus, at this moment, we are looking internally at all sectors and focus on improving efficiencies. It’s key for us.”

Production boost: The 25,000tpy TM from Valmet at the Saraburi site installed in 2014

The Kingdom of Thailand has the second largest economy in Southeast Asia after Indonesia. The World Bank classifies Thailand as an upper-middle-income economy. The CIA World Factbook ranked Thailand’s economic GDP as 21st in purchasing power parity with exports accounting for about two-thirds of this value. Their economy grew at an estimated rate of 3-3.7% from 2015 to 2017, and Thailand’s population is ranked as 20th in a world with over 68 million people, growing at 0.3%.

Figure 1, derived from FAO data, shows Thailand’s overall tissue exports have been flat in the last three years, while imports represent greater volume and growth. Figure 2 shows the three-year average exports are well dispersed, with Australia the largest customer. Import activity in Figure 3 is focused on Indonesia providing most of the off- shore production.

Figure 1: Thailand’s T&T trade Flow

Figure 2: Thailand’s tissue exports

Figure 3: Thailand’s tissue imports

The scale in Figure 3 is 9X the scale in Figure 2. This large import focus will be relevant in examining the evolution of Thailand’s domestic capacity. Most of Thailand’s tissue exports are finished products while over half of imports are jumbo rolls for converting.Figure 4 shows the location of Thailand’s seven tissue mills clustered near the Gulf of Thailand and the capital Bangkok. Owners of these mills are Berli Jucker Group; Kimberly-Clark Corp.; RiverPro Pulp & Paper Co.; and Wang N.T. Paper Co. The integrated recycled fibre sites are green circles and the non- integrated sites are blue triangles.

Consumer product grades are the focus of Thailand’s tissue business. Most of his production is based on recycled fibre as shown in Figure 5. Several of the sites are integrated with recycled pulp production. Figure 6 provides a more detailed look at Thailand’s tissue furnish by product type. Consumer bath tissue is the largest product format and deinked fibre is the most common furnish with some kraft pulp. Consumer facial is the next largest product, and kraft pulp is the most common furnish type using mostly hardwood.

Figure 4: Thailand’s tissue mills

Figure 5: Thailand’s tissue fibre types

Figure 6: Thailand’s T&T products by fibre source

Consumer towel products use both deinked and virgin fibre. The virgin kraft furnish is about half softwood in contrast  to the other grades where hardwood predominates. Consumer napkin is the smallest product category. The primary furnish for napkins is deinked fibre as in bath tissue.

Thailand’s tissue capacity has grown at annual rate of 3.28% in the last 12 years through new mills and tissue machines. Figure 7 shows three new mills or sites added between 2013 and 2014. Wang N.T. Paper Co., entered production with their Lopburi Mill, and RiverPro Pulp & Paper Co. added the Nong Khaei and Taeparak Mills in 2014.

These mill additions brought the total number of tissue machines up to 15 in 2016 before the shutdown of the tissue machine #1 at Kimberly-Clark’s Samutprakarn Mill in 2017. Figure 8 shows the net change resulted in a total of 14 operating machines in 2018.

Figure 7 & 8: Thailand’s mill additions and tissue machine count

Figure 9: Thailand’s tissue capacity curve

Figure 9 shows the tissue capacity curve effects as larger machines came on-line replacing a smaller line. This represents a 3.28% CAGR (Cumulative Annual Growth Rate) over the period shown for 191,949m tonnes per year in 2018.

Figure 10 provides an average manufacturing cash cost and cumulative production ranking by country in the Asia Pacific Region. Looking at Thailand’s tissue industry relative to the rest of the region, Thailand tissue mills represent a relatively small portion of the overall production in a region where China produces the largest amount. However, Thailand’s average cash cost position looks good, positioned just after the larger Indonesian capacity costs.

Figure 10: Tissue cost curve for Asia Pacific countries

Figure 11: Tissue viability benchmarking for Asia Pacific countries

Figure 11 shows another way of rating production capability between countries in the region. The cash costs of Figure 10 are replaced by the Fisher International Viability Index that takes into account not only the cash costs but the capital required, size, technical age, and productivity of the mills and machines relative to the region. Here we see that Thailand is falling behind as other countries in the region are expanding their tissue capacity faster with newer and more productive equipment.

Figure 12 shows another method of evaluating Thailand’s tissue business relative to the overall Asia Pacific Region. This chart uses the same format as the Figure 10 (Costs) and Figure 11 (Viability) but now examines the Asian Pacific Tissue industry by country regarding Total Carbon Emissions. Carbon emissions are expressed as MT CO2 eq per tonne of tissue production. Total emissions include raw materials, fossil fuel consumption, and purchased electricity. Carbon emissions are becoming a viability factor in some regions. This chart looks similar to Figure 11 indicating that some of the components of carbon emissions are related to technical age and productivity factors.

Figure 12: Tissue carbon benchmarking for Asia Pacific countries

Conclusions
Thailand’s tissue industry is based mostly on recycled fibre and focused on the consumer product grades. Tissue exports are small but imports, primarily parent rolls, exceed 30% of the domestic production. Current manufacturing cash costs are lower than average in the Asia Pacific Region, but viability and carbon emission curves suggest that domestic production can  expect more pressure from parent roll imports. Indonesia would likely continue to be a major source of parent rolls and possible converted products.

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As the United Kingdom is heavily dependent on imports of raw materials for its tissue industry, the country has been exposed to threatening market fluctuations in 2017.

Steady rise of pulp and parent reels prices combined with a highly fluctuating exchange rate have had a deep impact on manufacturers which saw their profit margins evaporate in just over a few months.

Accrol Plc, a manufacturer specialised in private label and contracted by leading retailers such as Lidl, Tesco and Morrison, faced unprecedented liquidity issues in 2017.

The company temporarily suspended its listing on the AIM, and lost more than 60% of its share price as the management looked at its shareholding to raise funds.

Rising pulp prices are problematic in their own right but are cyclical events to which the industry is used to. But as the market price increased, with pulp providers such as Sodra hiking their price index of Northern Bleached Softwood Kraft (NBSK) by 31% in 2017, unpredictable exchange rates added an extra dose of uncertainty which caused disarray such as in Accrol’s case. Considering that the tissue sector
is extremely mature with tight profit margins, manufacturers are currently being squeezed between higher production costs and retailers unwilling to offload those onto their customers.

Decreasing disposable income and growing inflation rates have indeed made the retailing sector more price competitive, and consumers are looking at the best deals.

Table 1: UK retail tissue volume growth – from worst case to best case scenario Notes to the table opposite: Included are historic growth and baseline forecast, worst and best case scenarios, and the impact of No-Deal Brexit represented by a brown line (note red circle) trending above worst case scenario but below baseline forecast

Ultimately, raising unit prices are to occur in order to reflect tightening market conditions.

However we expect those hikes to affect tissue products differently. Toilet tissue and paper towel are items considered as more price sensitive by consumers, while facial tissues, not purchased as frequently and coming in wider ranges of sizes, would likely see higher price hikes.

Consumers are also expected to trade down and further opt for private label products, with discounters such as Asda and Lidl set to experience high growth rates.

On a more practical basis, manufacturers could be tempted to reduce the size of their product, a “shrinkflation” phenomenon which has already been taking place over the past years but could very well be further accentuated.

Finally, this tightening environment could provide a boost to manufacturers selling more innovative – and expensive – products as the pricing gap would be reduced. Specifically, bamboo-focused brands such as The Cheeky Panda, which is already meeting a growing audience in the UK, could gain even more momentum in the coming years.

Looking beyond the UK: Brexit vs Trump trade wars and China hard landing
While the impact of Brexit on consumer tissue will be felt primarily in the UK, markets and industry players operating in countries beyond the UK and Western Europe have other concerns overshadowing any impact of Brexit.

With potential changes in trade policies discussed by the new US administration, Euromonitor International’s Industry Forecast Model anticipates the impact of the trade wars on retail tissue products to be felt in the Mexican market, due to the extent of trade and imports between the US and Mexico.

The impact of potential changes in trade policies on retail tissue markets in Asia Pacific, including China – currently the world’s largest market for tissue and hygiene products – can be mitigated by the expanding domestic production and locally-sourced supply base built by domestic, regional and global players to increase cost efficiencies as well as shield the industry revenues from the impact of currency fluctuations.

Table 2: China, Mexico, USA retail tissue volume growth vs Trump Trade Wars scenario
Note to the table above: the table represents projected growth scenario in volume terms, % CAGR growth. Red circle indicates the adjustment to the forecast in case of Trump Trade Wars vs projected growth designated by Quarterly Update circle.

At the same time, however, China’s hard landing – still the subject of debates – can add to reduced projections for the industry revenues over 2016-2021, to the tune of estimated USD700m less in projected retail sales (or about 3% of the total projected retail sales) by 2021 if hard landing scenario materialises in 2018.

Georgia‐Pacific (GP) is to permanently close its Augusta Select Tissue mill following increased competition in the tissue business.

The move will impact 55 members of staff.

GP said: “The decision to close the facility comes after careful review of the current state of the mill and the tissue business.

“Specifically, this business decision was driven by increased competition in the tissue business and improvement in asset performance at other GP facilities, as well as the size and competitive cost position of the Augusta facility.”

The site was part of the company’s acquisition of SPG in 2014 and made tissue for multiple products.

Rob Shaw, vice president of manufacturing who has oversight for the Augusta tissue facility, said: “Our commitment is to work with employees to find ways to minimise the difficulty as best we can.

“That includes working with state and local employment agencies that can also support these employees.”

The plan for the site is that any usable equipment will be relocated to other GP facilities. Equipment that can’t be moved, including the paper machine, will be dismantled and sold for scrap, and the property will ultimately be sold.

The closure of the tissue mill does not affect GP’s Augusta Corrugated plant or its employees.

Cascades has said its first quarter performance improved year-over-year and sequentially, but added its tissue segment results were impacted by lower than average selling prices, increased competitiveness and higher raw material costs.

Sales for the company increased 9% to $1,098m compared with the same time a year earlier.

Operating income before amortisation was $167m, an increase of 114%.

The tissue papers division increased shipments by 7% year-over-year within the “challenging market conditions and market related downtime” taken at the beginning of the year.

However, Mario Plourde, president and chief executive, said that results for the segment were “impacted by lower average selling prices driven by increased competitiveness in several markets, higher raw material prices, and negative operating margin related to the Oregon converting facility that was started in the second quarter of 2017”.

He said: “Our consolidated first quarter performance improved both year-over-year and sequentially in terms of sales levels, shipments and operating income.

“Changes in raw material prices were positive on a consolidated basis both sequentially and year-over-year, while higher transportation costs negatively impacted profitability in our North American operations.”

On a sequential basis, consolidated first quarter results reflected improvements in capacity utilisation, sales, and operating income.

This was driven by a strong performance from the European boxboard division, and was supported by a slight progress in tissue.

Plourde added the company expects profitability levels in its tissue paper division to remain under pressure as a result of the heightened competitive marketplace and rising raw material costs.

He said: “While external factors remain challenging in this segment, we remain focused on managing inventory, growing sales levels in our targeted markets, incorporating lower cost materials in our production processes when possible, and increasing sales levels in our Oregon tissue converting facility where we continue to make positive and measurable progress.

“In Europe, underlying industry fundamentals suggest continued strength, raw material prices continue to be favourable, and both order backlog and order intake levels remain healthy.

“Operationally, we will concentrate on managing raw material costs and countering the trend of increasing transportation costs through optimisation of our transport strategies.”

The WEPA Group has signed a contract to acquire all shares in UK-based Northwood & WEPA (N&W).

Since 2013, WEPA and Northwood previously both had a 50% share in the N&W joint venture.

Completion of the acquisition is planned for 5 July 2018. The contracting parties will not disclose the purchase price.

N&W’s Bridgend-based site has 230 staff and produces rolled products (toilet paper and kitchen towels) for the British consumer market.

It has one paper machine with a capacity of 52,00tpy and a converting capacity of 80,000tpy.
Martin Krengel, chief executive of the WEPA Group, said: “The company has demonstrated its hygiene paper expertise in the UK consumer market.

“With the acquisition of all shares and with our outstanding team, the WEPA Group takes the opportunity to work even more intensively in the UK to generate further growth.

“With a total of 12 factories we are logistically very well positioned and can supply our customers with the usual reliability and quality.”

The WEPA Group is one of the three largest suppliers in the European tissue market, with 3,800 employees and a turnover of around € 1.2bn following the transaction.

The company added the acquisition will further increase its presence in the European private label market.

Paul Fecher, chairman of the Northwood Companies, said: “The transaction gives our leadership team and the whole Northwood family of companies the opportunity to accelerate our continued growth.

“Northwood is one of the UK’s leading independent manufacturer and suppliers in the AfH and hygienic tissue sector.

“Following the recent, significant multi-million-pound investment programme in state of the art plant and machinery, Northwood has created a platform that will facilitate further intensive growth.”

Northwood Hygiene Products has tissue paper mills and converting sites across seven different UK locations include recycling, tissue making/sourcing, converting and logistics.

It employs over 450 people and has sales of ca£250m.

Poland’s largest manufacturer of tissue hygiene consumer products has been successfully acquired by private equity company Abris Capital Partners.

The transaction has been approved by Poland’s Office of Competition and Consumer Protection.

Velvet Care is a leading manufacturer of brand-name, paper-based personal care products (including tissues, toilet paper and kitchen paper towels) and the owner of the Velvet brand in Poland.

The change will facilitate further acceleration of the company’s rapid growth, including international expansion in the CEE region.

Velvet Care was established in August 2013, although its origins date from 1897.

Artur Pielak, chief executive of Velvet CARE, said: “One of the core principles hardwired into our company’s DNA is the drive to grow the business rapidly and deliver on ambitious goals. “For that reason, we appreciate the great accountability involved in selecting the business partners who will help us attain those goals.
“As we open a new chapter in the company’s history, this time with Abris Capital Partners as our new partner and with whom we share a similar approach to business, we are poised to pursue a path of international expansion by acquiring attractive entities in our region while also growing organically in Poland as well as on selected western European markets.”

In March 2018, Velvet Care started up a new 5.6m wide Valmet-supplied PM at its Klucze tissue mill.

The Navigator Company will increase its tissue prices by 5 – 8 % in all products and markets across Europe as of 1 July.

It said the decision follows “the continuous increase in key raw materials costs”.

The company produces printing and copy paper and entered into the tissue market in 2015 with the acquisition of the AMS mill in Vila Velha de Ródão, Portugal, a 100% virgin tissue operation.

It is completing the construction of a new tissue mill in Cacia, Portugal, which is integrated with its eucalyptus pulp mill and where tissue converting started at the beginning of May.

Xiamen Sin Yang Paper has invested in a tissue machine restart-up package from Valmet.

Delivery will include project management, maintenance, spare parts and start-up of a tissue machine idled in 2014 and originally delivered by Valmet.

The start-up is scheduled for July 2018.