Country Report Poland: Tissue Takes Flight
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Issue #4 Issue The independent news provider for the global tissue business July/August 2019 | July/August COUNTRY REPORT POLAND: TISSUE TAKES FLIGHT Plus … Barometer Special Feature Companies across the world one year on MarketIssues Focus On Rapid changes in pulp supply and pricing Innovative water: Fine Hygienic Holding present major challenges Millennials Demanding Change ExitIssues A $140bn market by 2023 Chinese growth rate set to drop by half Consumerspeak Chemicals: Technical Theme ‘Social purpose in tissue is Solenis, Buckman and Kemira report a competitive advantage’ MCI (P) 141/03/2019 YOUR SINGLE SOURCE FOR TISSUE Bath Tissue | Facial Tissue | Napkins | Kitchen Towel | Industrial Towel | Center Pull Towel | TAD Bath and Towel | NTT Bath and Towel | Carrier and Specialty Tissue | Airlaid | Nonwovens | and more THE GLOBAL LEADER IN TISSUE The Power of Leadership Since 1976, Convermat has been the leading global supplier of parent rolls of tissue to more than 80 countries worldwide. Our unparalleled market intel and strong network of strategic alliances, resources, and insider knowledge can further grow and strengthen your business to achieve higher profits. There When You Need Us We consistently maintain capacity balance for many of the leading global tissue players. Our extensive network of global suppliers and customers enables us to deliver a continuous flow of tissue at the most competitive prices in any market condition and to any destination with speed, reliability, and integrity. At Your Service Our experienced team of seasoned professionals is equipped to handle all of your needs including inland and ocean transportation, import/export protocol, technical specifications, testing lab facilities, proprietary product development, foreign currency management, credit risk, and all relevant sales services. More Than Tissue In addition to our complete line of tissue, towel, napkins, and specialty paper we supply a comprehensive line of nonwoven substrates for medical, wipes, automotive, filtration, hygiene applications, and more. www.convermat.com T: 516.487.7100 F: 516.487.7170 In this issue... FrontIssues 3 TWM goes to Poland to see what a tissue boom looks like. MarketIssues 4 Rapid changes in supply and pricing in the pulp market present major challenges for both suppliers and buyers. The need for price hedging tools is likely to increase. Report by Pierre Bach, Hawkins Wright research manager. World News 8 The latest news impacting your market from across the global tissue industry. Country Report: Poland 17 Tissue business modernises but coal power lingers. By Fisher International. Country Report: Poland 20 Opportunities in a fairly evolved market. With per capita consumption of retail tissue at nearly 7kg in 2018, Poland is one of the most developed consumer tissue markets in Eastern Europe, behind only Croatia and Slovenia. By Euromonitor International. Operations Report: Velvet Care 22 Velvet Care Operations Report Polish tissue consumption is booming - says the boss of the branded market TWM meets plant manager and vice president Marek leader. Ściążko to discuss the latest from the Polish tissue giant. Page 22 Operations Report: Pol-Mak 28 A dominant napkin producer in Europe aims to be bigger still. ConsumerSpeak 33 Tissue companies embedding social purpose into their business models can gain a competitive advantage. Lucinda Hardwick, a partnerships manager at UNLtd, the leading provider of support to social entrepreneurs in and around the UK. She lives in London. Chemicals: Technical Theme 34 SOLENIS: Enabling high-quality consumer tissue with sustainable fibres. By Richard Cho, global marketing director. BUCKMAN: The right chemistry to lower your pulp costs. By Mark Christopher, global market development manager – tissue AND Daniel Glover, innovation FrontIssues 03 director – Pulp & Paper. FI KEMIRA: Kemira KemView Gen II sheet structure analyser for tissue. By MarketIssues 04 Clay Campbell, global business development, senior manager, and Lucyna MI Pawlowska, tissue process application specialist. Focus On 42 WN World News 08 Fine Hygienic Holding begins operation of innovative water treatment facility in Jordan. By Maen Tabari, Fine Hygienic Holding director of supply chain, Jordan. CR Country Report 17 Barometer Issue: Special Feature 45 Talking to tissue professionals on-site and on their front-line is a crucial E Euromonitor 20 source of industry intelligence in judging local and international trends and strategies. In 2018, TWM visited tissue mills around the world … including sites in North America, Turkey, the United Arab Emirates, Mexico and Vietnam OR Operation Report 22 for the magazine’s Country Reports. Here, we revisit mills who have been in the headlines since to assess their progress. Technical Theme 34 ExitIssues 52 TT Chinese consumption growth down from recent high of 10% to a 4.8% forecast. Tissue’s strong upswing was broken in 2018. Much now depends Exit Issues 52 on the economy and consumer expenditures recovering from external and EI internal pressures. Report by Esko Uutela, principal, tissue, Fastmarkets. Cover: Image showing the eagle of Poland's coat of arms soaring across the Eu- ropean continent, representing the country's booming tissue industry and export Ad Index 55 potential. By Contrast Creative. Tissue World Magazine | July/August 2019 5 FI FrontIssues TWM GOES TO POLAND TO SEE WHAT A TISSUE BOOM LOOKS LIKE Helen Morris Senior Editor, Tissue World Magazine utside of China – and the China of a few years ago, as this edition’s Exitissues suggests – it is rare to come EDITORIAL HEADQUARTERS across growth and consumption figures like these. UBM Exhibition Singapore Pte Ltd. 10 Kallang Avenue, #09-16 Aperia Tower 2, Singapore 339510 Tel: +65 6233 6688 Fax: +65 6233 6633 O Poland is seeing a rise in salaries – the description used by one Deputy Event Director & Publisher of our contributors is an unequivocal “fast” – so shoppers have more spending Agnes Gehot: [email protected] money, they are discovering discounting stores, which in turn are proliferating. Senior Editor Branded tissue market leader Velvet Care – operating from a site of industrial Helen Morris: [email protected] production started in 1897 – is now 30 years on from the end of the Communist Managing Director Paul Wan: [email protected] era and hurtling with talent and enthusiasm into a new rich seam of growth CEO which has in recent times touched 20%, and is now at about 8%. Its workforce Margaret Ma Connolly: has doubled in five years, production capacity has tripled, converting capacity [email protected] more than doubled, and turnover increased from €121m to €150m in a year. President Any potential for over-capacity or an over-heating economy are not of Jimé Essink: [email protected] immediate concern. In Klucze, north west of Kraków, TWM was met with a ADVERTISING ENQUIRIES wave of optimism from Marek Ściążko, plant manager and vice president of Italy & Germany Rohit Taneja Silvio Arati T: +91 9971901205 the board, Rafał Curyło, vice president and finance director, and production T: +39 02 4851 7853 rohit@worldwideexhibitions. manager Wanda Ciesielczuk. They epitomise dedication to the company, and it’s [email protected] co.in a fascinating historical story with a hugely promising future. Rest of Europe and Africa China, Hong Kong & Macau Eduardo J Teixeira-Alves Jennie Zhan In Batorowo, close to the picturesque city of Poznan, Dariusz Makowiak was T: +34 651415284 T: +86 20 86660158 optimistic too. The sales and marketing director at POL-MAK had struggled to [email protected] [email protected] chisel out any time for our interview. Something else had been keeping him North America Turkey Alvina Kwok Ufuk Seferoğlu occupied. His wedding a few days away. T: +1 415 683 3318 T: +90 (0)216 425 63 00 [email protected] So it was generous of him to take time away from that important event to talk [email protected] Rest of the World about his other love … the family firm, started by his parents in 1986 and now South and Central America Andy Chua Selma Ugolini Poland’s leading niche producer of decorative paper napkins – 60% of its 1,200 T: +65 6233 6657 T: +55(11)99904 5350 [email protected] designs exported to 70 countries, and plans to reach 80% in the years ahead, and [email protected] in Poland itself growth assured as consumer spending and the AfH market advance. Taiwan Amy Tseng Napkins at that wedding reception would have been special. T: +886-2 8369 3616 [email protected] China’s downturn: a sign of turbulent times or a longer-term reality? India Any downturn for tissue in China is usually a relative one. For years the TISSUE WORLD MAGAZINE market has been in a very strong upswing, 10% or more consumption annually is published bi-monthly. The subscription price is US$400 per year just a few years ago. This year the forecast is 5.1%, then 4.8% for 2020. We will for 6 issues. Subscription is free for qualified subscribers in the tissue industry. not know the real extend of any longer term changes until the uncertainties of recent years have settled: the systemic, internal economic shift from investment Please send address corrections to: UBM Exhibition Singapore Pte Ltd. to home consumption; the ongoing trade tariff war with President Trump’s 10 Kallang Avenue, #09-16 Aperia Tower 2, Singapore 339510 America; and what seems to be a growing resistance to the alleged ‘trade debt’ Tel: +65 6233 6688 Fax: +65 6233 6633 involvement of countries linked to China’s huge Belt and Road initiative. [email protected] China’s own forecasts have traditionally been conservative. The US-based Subscription online at Fastmarket’s analysis, carried in detail in TWM’s Exitissues, projected almost www.tissueworldmagazine.com 6.8% growth for 2018. In Tissue World all measures are metric and all dollars ($) are In his report, Fastmarket’s principal Esko Uutela examines the effects of high US dollars, unless otherwise stated.