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Euromonitor International 23 Budget Constraints Hinder Demand for Consumer Tissue

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Euromonitor International 23 Budget Constraints Hinder Demand for Consumer Tissue cover_V008_vector.indd 1 19/10/15 16:16 Let the power of our world work for you. The Power of Leadership Convermat is a leading global supplier of parent rolls of tissue worldwide. Our unsurpassed network of strategic alliances, resources and industry knowledge will help your business grow stronger and achieve higher profit results. The Power of Reliability and Speed Convermat can deliver a continuous stream of tissue as we consistently maintain capacity balance for many of the leading global tissue players. The Power of World Reach With our extensive network of global sources and customer reach, Convermat is uniquely positioned to offer the best price in any market condition and in any location around the globe. The Power of Professional Service Our expert staff can handle all aspects of your requirements including transportation, import/export protocols, documentation, technical specifications, testing lab, foreign currency management, credit risk, and all relevant sales services. Let the power of our world work for you. www.convermat.com T 516 . 487 . 7100 F 516 . 487 . 7170 New York | California | Florida | Wisconsin Hong Kong | Mexico YOUR SINGLE SOURCE FOR TISSUE SINCE 1976 Toilet Tissue | Facial Tissue | Toweling | Napkins | Specialty Wadding | TAD | DRC | Air-Laid | Wipes In this issue Page Frontissues 3 Huge potential yes, but plan for the long term in sub-Saharan Africa Marketissues 4 Is the slowdown in China a threat for the South East Asian tissue market? By Pirkko Petäjä, principal, Pöyry Management Consulting World News 9 An in-depth round up of the main tissue news stories from around the world Country Report - Fisher International 18 South Africa: Locally focused and underdeveloped T&T market Country Report - Euromonitor International 23 Budget constraints hinder demand for consumer tissue Operations report: Kimberly-Clark 25 An expanding main market opportunity … long term. TWM meets K-C South Africa Operations report: Universal Paper & 29 Plastics TWM visits Kimberly-Clark Niche innovation is key for this independent South Africa’s Enstra mill player. We interview three members of the in Gauteng founding Sher family Correll Tissue managing director Operations report: Correll Tissue 32 Aaron Ganesh talks tissue potential Tissue temps another major player from print and paper in our Operations Report Operations report: Sappi 35 Sugar cane and able: The company discusses the primary fibre source which supplies its Stanger site Quick links Page FOEX 36 Gain insight into the latest pulp price trends that impact your business with our in-depth FrontIssues 03 analysis Consumerspeak 39 Charlotte Lynn is a Canadian teacher. She talks MarketIssues 04 about her preferences for high quality, well- priced tissue products 09 Special Feature: Annual Review 40 World News As 2015 draws to a close, TW’s Annual Review asks figures in the global tissue industry for their retrospectives on 2015 and predictions Country Report 18 for 2016 Technical Theme: Packaging 45 Operations Report 25 Preferred Packaging, EVT and OCME talk about their latest technological advances 40 Exitissues 50 Special Feature Free from its long dark history how high can resource rich Indonesia rise? Academic Phillip Lawrence explains how the country achieved Technical Theme 45 such stellar growth, and asks… are its targets reachable? ExitIssues 50 Events Calendar 51 www.tissueworldmagazine.com Cover: PURPLEPRINT Creative SCOTT’S NEEDS TOSCOTEC SOLUTIONS Every Toscotec system delivers maximum energy efficiency with www.toscotec.com minimum environmental impact. Toscotec Service Team has experience Service Personnel available worldwide capable to support your new project or provide technical solutions. 24 Hour Global Customer Care Installation and Start Up Supervision assistance On Site or on Campus Training Programs designed to meet your specific needs Expert Inspection Service for Steel Yankees and Rolls Energy Audits performed with Milltech Air Systems experts to identify Energy Saving Solutions Maintenance Service and Programming Spare Parts Customer Service Care FrontIssues By Tissue World magazine editor Helen Morris Huge potential yes, but plan for the long term in sub-Saharan Africa he extraordinary history and traditions of the The reason for Helen Morris peoples of the continent of Africa have produced the imbalance Tmany proverbs … I especially like this one: Be- of optimism ware time, because it has the answers. is that tissue people on the What struck me most in this edition’s Country Reports front line have in South Africa is the optimism and ambition of tissue the skills to do sector personnel set against a recognition that bridg- something about ing the gap between what little growth there will be in it, uppermost the immediate future - and reaping the real potential among which are innovative talent, Editor, growth which is waiting out there - is a long term, pos- Tissue World magazine sibly a very long term project. determination and passion. The potential is clear. With a population in excess of 1.1 billion people and growing, the African market is second only to Asia with 4.4 billion. A large popula- China’s influence on ASEAN tion supplied by low production would usually mean positive forecasts and a rush to build mills. But Fisher China faces a high probability of being the next major International’s analysis tells us that continental Africa power to face an economic collapse, Pirkko Petäjä says and South Africa itself have seen low growth in recent in her analysis in MarketIssues. years, tending to flat-lining today. An ambitious rebalancing of China’s economic model South African’s tissue men and women are altogether is underway - from manufacturing for export under- more optimistic, as our reports show. Estimates of pinned by government investment in core industries, their various growth figures range up to 10%, even as to boosting domestic consumption through a rapidly they battle a struggling economy, widespread poverty, growing middle class with real spending power. That stifling exchange rates, rising energy costs, high labour should be good news for tissue in China and across costs, and the particular logistical problems associated the huge ASEAN market? But it carries huge risks. with the geography of sub-Saharan Africa. EDITORIAL HEADQUARTERS ADVERTISING ENQUIRIES UBM Exhibition Singapore Pte Ltd. Americas and Europe Asia-Pacific Sales 10 Hoe Chiang Road, #20-05 Keppel Towers, Singapore 089315 Paolo Rampetta Ivan Ferrari Tel: +65 6592 0888 • Fax: +65 6438 6090 Tel/Fax: +32 2 646 1606 Tel: +65 6592 0888 Ext. 886 Skype: paolo.rampetta Fax: +65 6438 6090 Mobile: +32 497 050 755 Email: [email protected] Email: [email protected] PUBLISHER ASSISTANT MARKETING MANAGER Ivan Ferrari Yew Lei Ching TISSUE WORLD is published bi-monthly. The subscription price is US$400 per year [email protected] [email protected] for 6 issues. Subscription is free for qualified subscribers in the tissue industry. EDITOR MANAGING DIRECTOR Please send address corrections to UBM Exhibition Singapore Pte Ltd. Helen Morris Paul Wan 10 Hoe Chiang Road, #20-05 Keppel Towers, Singapore 0893159 [email protected] [email protected] Email: [email protected] SENIOR VICE PRESIDENT Subscription online at www.tissueworldmagazine.com Chris Eve In Tissue World all measures are metric and all dollars ($) are US dollars, unless [email protected] otherwise stated. PRESIDENT/CEO Copyright 2005 - 2015 by UBM Exhibition Singapore Pte Ltd. All rights reserved. All Jimé Essink materials printed in Tissue World magazine is owned by UBM Exhibition Singapore Pte [email protected] Ltd and protected under the copyright act. No material may be reproduced in part or in whole without the prior written consent of UBM Exhibition Singapore Pte Ltd. Page 3 MarketIssues Is the slowdown in China a threat for the South East Asian tissue market? he South East Asian region is Islam is the main religion, however Pirkko Petäjä among the fastest growing not necessarily dominant in all the Ttissue markets worldwide, countries. but tissue production in the region grows even faster The ASEAN tissue market grows as an average 6.5 % per year South East Asia consists of eleven countries that reach from eastern The South East Asian tissue market India to China, and is generally totals some 760,000tpy if only divided into “mainland” and “island” the ASEAN countries are included; zones. The mainland (Burma, Thailand, including also Taiwan and Hong Kong Laos, Cambodia, and Vietnam) is an the market totals over one million extension of the Asian continent. tonnes. Indonesia is the largest Principal, Island or maritime South East Asia individual tissue market of the Pöyry Management Consulting includes Malaysia, Singapore, ASEAN countries at some 230,000tpy Indonesia, the Philippines, Brunei, followed by Malaysia, Thailand and and the new nation of East Timor Vietnam. The Taiwanese market is a (formerly part of Indonesia). little larger than the Indonesian at 240,000tpy. A distinctive feature of South East Asia is mature and grow clearly at a slower its cultural diversity. Of the six thousand Tissue demand in the ASEAN countries rate. languages spoken in the world today, an grows as an average some 6,5 %/a, estimated thousand are found in South Vietnam and Indonesia accounting The ASEAN market is among the East Asia. Cultural impact from both for the fastest growth rates. Markets world’s fastest growing tissue markets China and India can be found. in Taiwan and Hong Kong are more on a par with the Chinese market. TISSUE WORLD magazine November/December 2015 MarketIssues By Pöyry Management Consulting’s Pirkko Petäjä Economic growth and other drivers in the markets The tissue per capita consumption is still low in this emerging market area; (1-2 kg/capita in Indonesia, Vietnam, Thailand, some 5-6 kg/capita in Malaysia and some 10 kg/capita in Taiwan). This is even below what can be expected based on the GDP per capita levels.
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