Senior Management Symposium (SMS)

“Taking Advantage of New Challenges and Opportunities – Sustainable Growth for a Sustainable World”

22-23 April 2010 * Queen Sirikit National Convention Centre

SESSION 1: 22 April (Thursday) 0900-1300hrs

Pulp & Paper Developments in Thailand and Southeast Asia – Surviving the Recession
Chaovalit Ekabut, President, SCG Paper, Thailand
Presently, the market downturn has nearly passed with signs of recovery. However, the recession brought another round of market disequilibrium in the ASEAN P&B industry. While numerous capacity closures were announced, a significant oversupply remains, exacerbated by measures such as the US black liquor subsidy and new Chinese capacities. Experience reminds us to prepare for the growing concerns after recession such as rising input cost and change in competitive landscape.

Sustainability: Key Considerations for a Global Pulp & Paper Company
Aida Greenbury, Director of Sustainability & Stakeholder Engagement, Asia Pulp & Paper, Indonesia
Much of the developed world has been through the cycle of utilizing its natural resources for economic development. As the country looks to bring its people out of poverty, Indonesia is sustainably using its natural resources whilst learning from the mistakes of the past and the current need to tackle climate change. APP believes that as a leading global pulp and paper company it must play an important role in setting the standard for the sustainable development of Indonesia and the developing world.

Canada’s Forest Sector Plan to be Carbon Neutral by 2015
Mark Hubert, VP Climate Change Leadership, Forest Products Association of Canada
Canada’s forestry sector began more than a decade ago to seriously address climate change by streamlining and modernizing operations, producing and using renewable fuels, and developing bio-products. In October 2007, the Forest Products Association of Canada announced it would aim for industry-wide carbon-neutrality by 2015 without the purchase of carbon offset credits. A partnership with WWF-Canada informs and guides the initiative. This speech will discuss how FPAC and WWF-Canada are working to effect positive change and lead on this important and globally relevant issue.

Will China Keep Growing So Rapidly in Pulp & Paper?
Cao Zhen Lei, VP, Sinolight Corporation and Secretary General, China TAPI, China
By the end of 2009, China became the number 1 consumer and producer in paper and board in the world, just slightly above the USA. More importantly, there are many new paper and board projects underway. The paper industry is very likely to continue to restructure, with old out-dated capacity replaced by modern plants. This restructuring will be the main topic for China for the next 5-10 years to come.

ILIM – Modernizing in Russia and the Implications for Asian Markets
Brian McDonald, Deputy CEO – Managing Director, Ilim East, Russia
Ilim Group is the largest company in Russia in terms of production of market pulp, containerboards, consumer packaging, forest resources and logging volumes, and a key supplier of bleached softwood pulp and kraftliner to China. Ilim’s two Siberian Mills in Bratsk and Ust-Ilimsk are ideally located to serve the China and Asian markets and a core strategy is to expand Softwood Pulp capacity for China and Asia. The presentation will go into the why, how, and when of Ilim’s modernization and it’s impacts on Asia.

SESSION 2: 22 April (Thursday) 1400-1700hrs

Does the Future of Graphic Paper Belong to China and Asia-Pacific?
Pertti Salminen, Senior Vice President, UPM-Kymmene, China
Graphic paper demand growth has slowed down dramatically in the mature Western markets. In contrast, the Asia-Pacific region has many of the ingredients for continued graphic paper demand expansion. However, will the future demand outlook change or has it already changed? How will the large capacity expansions in China fit in the regional post-recession markets?

The Outlook for Uncoated Woodfree Paper Grades in the Short and Medium Term
Sunil Sood, Executive Vice President, APRIL, Singapore
This speech will consider the drivers and forces impacting the market for Uncoated Woodfree Paper Grades and present a forecast for how the supply/demand balance will look in the short and medium term.

The Outlook for World Recovered Paper Markets
Rod Young, Chief Economic Advisor, RISI, USA
World recovered paper demand continues on a strong upward track, driven by rapid expansion of the Asian paper industry. Supplies will be stretched, especially for graphic paper grades such as old newspapers and magazines, and upward pressure on prices will be prevalent over the next two years. This presentation will cover the fundamentals impacting world recovered paper markets.

Market Pulp: The Influence of China on World Supply and Demand
Roger Wright, Managing Director, Hawkins Wright, UK
This year, the growth in China’s market pulp imports will only just compensate for the decline in demand in the rest of the world. In 2010, China and Indonesia could increase pulp production by over one million tonnes. How will this affect the global industry?

SESSION 3: 23 April (Friday) 0900-1300hrs

Pulp&Paper Industry in Transition – it’s about Smart Choices!
Roland Haslehner, Partner, Boston Consulting Group, Austria
The paper industry has already been under pressure for several years, driven by increasing input costs, stagnating end markets, and considerable oversupply. As a result most of European, North-American but also Asian players experienced declining profitability and pressure from investors. Now, the question is how to step-change value creation? It’s about smart, but tough, choices which we will discuss in the presentation.

Making Money in Turbulent Times: Macro, Micro and P&P Issues
Tomas Anderson, Manager, Paper & Board, ÅF, Sweden
The vulnerability of the paper industry became embarrassingly apparent as Macro trends coincided with Micro trends during last year’s financial crisis. In this presentation, we will describe which Macro trends to watch in the future vs. the Micro trends likely to occur from an Asian and worldwide perspective: What markets are really emerging and which are not? In short, this speech will lay down the vital points for understanding the business you are in – now and in the future.

Key Dynamics Impacting the Asian Paper Industry
Doug Parsonson, President, Pöyry Forest Industry (Asia-Pacific), Singapore
Asia promises continued growth in P&B demand. Regional production will increase but competitive fibre supplies, virgin, recycled and non-wood, will be an issue. Fibre constraints will be exacerbated by increasing competition from energy, and also from food (via competition for land).

The Status of the Indian Paper Industry and Prospects for Growth
Anil Kumar, Executive Director & CEO, Shreyans Industries Ltd., India
This presentation will cover the present status of paper industry in India, its distribution with respect to raw material usage, scale and technology employed, as well as its fragmented nature, acute constraints of fiber availability and environmental issues. The paper will look at various growth drivers of the paper industry in India and why it is likely to be a fast growing demand country in years to come. Various challenges to meet increasing demand of paper in the country will also be covered, as well as what the Indian industry is doing to remain competitive and sustainable in the future.

Latest Update on P&P Industry Developments in Vietnam
Vu Ngoc Bao, Secretary General, Vietnam Pulp and Paper Association, Vietnam
Vietnam has recently turned the corner and is on track for very impressive economic growth, albeit from a low base. Numerous important P&B investments are now underway and we will hear about the dynamics affecting the situation from the secretary general of the association.