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"Global Paper Industry - Recent Trends and Phenomena" Guest Speaker: Mr. Timo Varhama, President, UPM-Kymmene Japan KK |
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Timo Varhama started his presentation by giving the background how he ended up serving the paper industry when he as a 3 year old watched the shipments to all parts of the world from a paper mill near his home where his father worked.
 UPM is a major global player in the forest industry. It has a leading global market position in magazine papers and label papers, no. 1 in Europe in plywood and industrial wrappings, no. 2. By sales, which totaled 9,348 million euros in 2005, Europe is still by far the most important with 72%, USA represents 13 % and Asia 9%. One of the major challenges facing the paper industry is the overcapacity in printing papers, when the global demand is estimated at 145 million tons, the capacity is 161 million tons. The problem is most evident in Europe where capacity is 57.4 million tons but demand only 44.3 million tons. To balance this requires closure of a large number of mills and paper machines. UPM has already closed one mill (Voikkaa) and one paper machine at another mill, and plan to close two more paper machines in 2007 The demand for printing and writing papers is increasing moderately in Europe and strongly in Asia and the Middle East, while North America remains flat. |
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FCCJ President Mika Mäkinen opens the meeting, center Ambassador Jorma Julin, right Timo Varhama.
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Timo Varhama maiking his presentation
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Pertti Soikkanen of Metso Paper Inc. visiting from Finland explains why the paper industry is hi-tech. A modern paper machine contains more computing power and software than a Boeing 747.
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Shuji Yamamoto ofKemira-Ube K.K. asks a question about the competitiveness in Japan of paper produced in China.
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The meeting was attended by 27 members and guests
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Beckie Cassidy of JMEC
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