Market pulp demand will increase in Asia
BLEACHED KRAFT PULP DEMAND OUTLOOK, CONSUMPTION GROWTH BETWEEN 2018–2025 (MILLION TONNES)
+2,3
+4,5
+0,2
+0,2
+1,2
57%
+0,2
+1,8
+0,8
+0,4
+0,2
BHKP (BLEACHED HARDWOOD KRAFT PULP) DWP (DISSOLVING WOOD PULP) BSKP (BLEACHED SOFTWOOD KRAFT PULP)
“The conversion of northern wood is at the core of our pulp business. Our strategy can’t include corporate acqui- sitions from other parts of the world.” According to Hämälä, the crucial question is whether Metsä Group is able to be competitive in the markets with growing demand. “We can’t compete with the price of our raw material, so we have to create our competitiveness from our own operations.” Hämälä characterises the Äänekoski bioproduct mill and the proposed new bioproduct mill in Kemi as per- formance leaps. “If you make a technology leap, it must enable your competitiveness for at least the next 30 years. This is why we’re not renewing our mills one part at a time – it ties up development.” Will we need equivalent leaps in the coming years as well? “Yes, we will. For that, we need to cooperate with the equipment suppliers, so that the development work can be put to use in any following investments.”
When you make a decision to start the pre-engineering phase of a new mill, you can no longer include very large new things on the drawing board. “That’s why we aim to maintain continuous and close cooperation with equipment suppliers.” THERE IS STILL ROOM FOR CORPORATE ACQUISITIONS The pulp industry’s investment costs, which have risen to the billions, force companies to think about different meth- ods by which they can achieve growth. Teija Konttori also expects to see corporate acquisitions in the next few years. “If growth is what you’re after, acquisitions often offer a quicker route to it than organic growth,” she says. In addition to growth, the motive for a corporate acquisition can also be the acquisition of new know-how, market share and technology. Securing the availability of raw material is another important driver. The state of the macroeconomy also has an effect – when the economy grows, the number of corporate acquisi- tions increases, because money is available and demand is strong. The transition of purchasing power and demand
32
Powered by FlippingBook