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Notes from the Exhibitors
We would like to inform you that last month, Serbian Government Agency SIEPA gave us an Award as a best exporter for the year 2006 in Serbia. I would like to take this moment to thank you, because if we had not participated at your valuable exhibition "PAP-FOR," our chances would have been much lower.
One of the two biggest international exhibitions, which are the base for our export expansion, is PAP-FOR. The 9th International Exhibition PAP-FOR 2006 deserves the best acknowledgement. Organization, effort of all the people who organized the fair, functionality, aesthetics and much more impressed me, and I believe all the people who were present were impressed too. Our presence there and contacts made ensured the increase of our sales by almost 100%. Great merits for that belong to our representatives in Moskva.
Thanks for all you have done for us.
We warmly regard you and hope we will continue enjoying better results.
We will see with new lines in PAP-FOR 2008.
Many happy returns.
Tomislav Petrovic
Ceda Press
I think the exhibition was a great success for us and our customers, and I am very pleased to cooperate with EJK.
Terttu Vainio
Sales manager
Entre Marketing
I've organized conference events myself of a fairly similar scale, and I know how much work goes into that. You [EJK] have succeeded very well.
Timo Teras
Leading Advisor
Pöyry
We recognize the growth and status of PAP-FOR Russia, and we are very excited to cooperate with EJK to organize the conference for 2008.
Pirkko Molkentin-Matilainen
President
Finnish Paper Engineers' Association
PAP-FOR: exhibitors and visitors satisfied with Russian trade fair
Experts: Russia too hesitant with investments / imports on the rise
The pulp and paper industry was satisfied with the PAP-FOR trade fair that took place on 21-24 November in St. Petersburg. Visitors and exhibitors spoke of "good contacts and talks" with Russian market players in the paper industry. Central European suppliers of technical applications considered the trade fair "a first step" in promoting further business deals. Russian participants also viewed PAP-FOR "as a good platform to present their companies."
According to the organizer of the event, E.J. Krause, over 300 exhibitors and 10,000 visitors attended the trade fair. A further exhibition hall is planned for the next PAP-FOR, scheduled for 4-7 November 2008. E.J. Krause said that several exhibitors had already inquired about booking larger booths. Moreover, Krause was considering the organization of a conference on current topics, such as tissue. In view of Russia's brisk development, further information and debate was required, according to market experts. Another key issue at PAP-FOR was the development of the packaging segment, which, according to market experts, had an enormous potential, but was still being neglected by producers. New capacities are needed badly; testliner and waste-based fluting could be promising options.
In spite of the large Russian suppliers of newsprint paper, Kondopoga, Solikamsk and Volga, not being among the PAP-FOR exhibitors, the topic of newsprint paper caused lively discussions. Demand has reportedly increased in this sector and imports are also on the rise. Against this backdrop, experts are calling for investments in new production facilities to enable exports and the supply of high-grade products on the domestic market. Coated paper and newspaper print were mentioned in this context.
The status quo of Russian investment plans is being scrutinized very carefully. Apart from isolated announcements of new pulp and tissue capacities, Russian market players are restricting themselves to modernizing existing plants. Central European suppliers of technical applications are registering comparably high and profitable demand, but large projects "merely remain in the pipeline." These plans often fail due to lack of funding and Russian banks' regulations. In contrast, the political situation concerning conflicting ownership rights appears to have subsided. Moreover, the state intends to push ahead with the privatization of forestry companies next year.
Experts on Russia are skeptical about growth in the Russian paper industry. One main complaint is that targets are only approached half-heartedly and, correspondingly, this business segment is being outperformed by other regions that are characterized by excess capacities. Thus, Chinese and Western European producers are reacting more strongly to Russian demand than Russian companies themselves are. "Western European manufacturers are already delivering volumes to Russia and this trend is growing," said EUWID respondents. Russia's entry into the WTO could accelerate this development because existing tariff barriers would fall or be reduced.
Scheduled capacity increases
Market observers are hoping for a "starting signal" for investments in Russia by the pending cooperation of Ilim Pulp and International Paper. It was announced that the new partners intended to invest more than US$1bn in pulp and paper capacities. Before news of the cooperation spread, the talk was about plans regarding reconstruction work in Kotlas and the packaging plant in St. Petersburg.
Independently of this, the U.S. company announced that a new BCTMP production facility was to be built at Svetog with investments amounting to US$150m. This step will increase the wood processing capacity of the plant by 50%. The facility's output is to reach 200,000 tpy of mechanical pulp for the paper and board production. The launch of the plant is scheduled for mid-2007.
In addition, Ilim Pulp announced the intention of investing about US$750m in its China business by 2009, in order to meet the increased pulp demand in China.
This is not the only reason why observers have high hopes for potential projects near the Chinese border. It also appears that Chinese companies want to invest US$113m in two plants for wood processing - deals have reportedly been made.
Furthermore, a TMP project is also underway. In 2007, Chinese companies are to invest US$250m in a plant with a capacity of processing 900,000 cbm of wood. In addition, a pulp plant capable of processing 3.5m cbm of wood is being built for US$1bn in Amur.
Russian market players and international experts are both demanding more and prompt investments in production facilities. ZBK Kama, Krasnokamsk, a producer of newsprint and offset paper that supplies the domestic market and the CIS, is a potential candidate for such measures.
Meanwhile, the modernization of the four existing newsprint facilities at Solikamsk is subject to delays. The capacity is gradually being increased from 500,000 to approximately 600,000 tpy with the extra volumes scheduled for availability at the beginning of the second quarter of 2007.
The project of a large international paper company targeted at a considerable increase of existing capacities in Russia has been delayed and temporarily stopped, according to market insiders.
Alexander Ungemach
EUWID Pulp and Paper
More information on PAP-FOR Russia 2006 can be found at:
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