The PPI Top 100 - Asian tigers pounce

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The PPI Top 100 - Asian tigers pounce

September 19, 2010 - 16:00

BRUSSELS, Sept. 20, 2010 (RISI) -Although International Paper has been the Old Faithful ofPPI's Top 100, holding the Number one spot for many years, 2009 saw quite a bit of movement in the rest of the classifications.

Fibria made its debut in the top third of the table, at No. 28, not surprising when one considers the size of the companies that merged to make up Fibria: VCP and Aracruz.

Others making a first appearance in the Top 100 were Hunan Tiger Forest & Paper at 80, Kapstone at 91, Arctic Paper at 93 and Neenah Paper at 94. Kapstone also enjoyed the honor of being ranked fifth inFortunemagazine's list of the 100 fastest growing companies.

However, as could be expected from how the worldwide pulp and paper industry has shaken out over the past few years, the real movers were the Asians. All making a significant climb up the ladder were Cheng Loong (from No. 88 all the way to No. 70), Sun Paper, Hokuetsu, Rengo, Yuen Foong Yu, Lee & Man and Shandong Chenming. At No. 35, Shandong Chenming is still the largest Chinese company listed.

Oji Paper moved up three positions but it was enough to crack the top five as the company came in at No. 3 behind last year's one-two punch of IP and Procter & Gamble. Rounding out the top five were SCA and Stora Enso.

Two Indian-based companies, BILT and ITC, also made a move upwards from No. 98 to 95 and No. 99 to 90 respectively.

Overall, sales of pulp, paper, board and converted materials showed a significant drop in 2009 compared with 2008, from $313.8 billion to $282.6 billion. This is even below the 2007 total of $296.1 billion. Total reported paper and board production fell to 187.5 million tonnes from 199.3 million tonnes in 2008. This marked the second consecutive year of decline. Market pulp production did show a small jump up, to 38.4 million tonnes from 37.3 million tonnes.

Of the six geographic regions, all but Asia showed a decline in sales. However, the industry was not really awash in a sea of red ink compared with 2008 and the recession that hit then. Recovery was underway later on in 2009 and the corporate rationalizations that had to be made did help the bottom line. Also helping the bottom line for many US companies was the Black Liquor Tax Credit. For some, it was the difference between profit and loss in 2009.

After moving all the way to the 14th spot in 2008, due mainly to the effect of the merger between the companies, AbitibiBowater fell eight spots to No. 22. Other newsprint producers also fared poorly. Catalyst dropped 14 positions to No. 63. Weyerhaeuser dropped all the way to No. 47 from its top 20 perch but this can be explained by the significant number of sales of its pulp and paper assets that it has made.

Metsa Botnia came in at No. 57, down from No. 35 in 2008. Unfortunately, a fixture in these tables for many years, Fraser Papers, has disappeared completely after filing for bankruptcy and selling most of its assets. Perhaps the companies such as Twin Rivers and Fortress Paper now trying their luck with the former Fraser properties will make their way onto this table in the future.

The Million Tonners Club (paper and board production) was slightly up from 54 to 55 companies in 2009. IP, Stora Enso and UPM still fill the top three spots. SCA with its strong tissue position moved all the way to No. 4 from No. 9. Kapstone not only made its debut on the "Monster Table", it is already a member of the Million Tonners Club, coming in at No. 53 with 1.03 million tonnes produced.

Another newcomer was Clearwater Paper. Billerud and Weyerhaeuser did not make the mark in 2009.

Those just outside the Top 100 include new comer China National Paper Industry Investment, Lintec Corporation, Shandong Bohui Paper, Copamex and Gascogne.

The million tonners' club
(Those companies making more than one million tonnes of paper and board in 2009)
Company 2009 Top 100 Rank P&B Output (1,000 tonnnes)
International Paper 1 12,286
Stora Enso 5 9,229
UPM 7 9,021
Svenska Cellulosa Aktiebolaget (SCA) 4 8,841
Oji Paper 3 6,973
Nippon Paper Industries 6 6,886
Sappi 16 6,800
Nine Dragons Paper 39 6,520
Smurfit Kappa Group 10 6,300e
Smurfit-Stone Container 15 5,691
AbitibiBowater 22 5,501
Domtar 17 3,978
Norske Skogindustrier 26 3,894
Mondi 9 3,662
Lee & Man Paper Manufacturing 48 3,550
Temple-Inland 27 3,543
Shandong Chenming Paper Holdings 35 3,040
Cascades 23 2,850
Siam Cement 56 2,500
MWV 12 2,447
Daio Paper 20 2,445
NewPage 25 2,427
Burgo Group 32 2,341
M-real 24 2,326
Yuen Foong Yu Group 52 2,275
Sun Paper 81 2,200
Holmen 40 2,186
Rengo 19 2,181
Packaging Corporation of America 34 2,048
Graphic Packaging International 21 2,032
Marubeni 11 1,926
Papierfabrik Palm 55 1,900
Hansol Paper 62 1,900
Myllykoski 44 1,872
Boise 37 1,865
RockTenn 30 1,853
Sonoco Products 29 1,600
Klabin 50 1,544
Mayr-Melnhof Karton 33 1,499
Hokuetsu Kishu Paper 42 1,447
Verso Paper 51 1,405
Catalyst Paper 63 1,388
Lecta 41 1,387
Prinzhorn Group 54 1,360
CMPC 31 1,347
Sequana Capital 13 1,300e
Shandong Huatai Paper 89 1,187
Durango 82 1,182
Cheng Loong 70 1,170
Clearwater Paper 61 1,167
Portucel Soporcel 49 1,133
Suzano Papel e Celulose 38 1,088
KapStone Paper and Packaging 91 1,034
Korsnäs Holding 69 1,025
DS Smith 43 1,000
Total of 55 companies 171,553
See notes accompanying production figures on the Top 100 tables for futher details.
Geographic portrait of this year's top 100
No. of companies1 2009Sales2($ million) 2008Sales ($ million) % change 2009/
2008
% of total 2009 Mkt pulp3(1,000 tonnes) % of total 2009 P&B4(1,000 tonnes) % of total 2009
Europe 33 88,021 107,095 -17.8 31.1 11,228 29.2 65,588 35.0
North America 32 107,608 118,135 -8.9 38.1 12,089 31.4 56,666 30.2
Asia 24 57,966 57,831 0.2 20.5 2,532 6.6 52,198 27.8
Latin America 7 12,064 13,365 -9.7 4.3 12,633 32.8 5,475 2.9
Oceania 2 10,590 11,673 -9.3 3.7 0 0.0 770 0.4
Africa 2 6,353 6,806 -6.7 2.2 0 0.0 6,800 3.6
100 282,603 314,905 -10.3 100 38,483 100 187,497 100
1. Due to consolidation moves, some companies have been added and deleted from the Top 100. This will affect the regional breakdown compared to previous years. Companies are listed in a particular region according to the location of their headquarters. 2. Sales from pulp, paper, converting and merchanting only. 3: Only companies making and reporting market pulp are included. 4: Only companies making and reporting paper and board are included.
Portrait of the top 100 by corporate size
Sales1
($ million)
% of
total 2009
Market
pulp2(1,000
tonnes)
% of total
2009
P&B3
(1,000 tonnes)
% of
total 2009
1-10 115,550 40.89 3,631 9.43 63,199 33.71
11-20 53,158 18.81 2,689 6.99 27,538 14.69
21-30 32,724 11.58 8,072 20.98 26,340 14.05
31-40 21,412 7.58 3,626 9.42 22,908 12.22
41-50 15,895 5.62 6,495 16.88 12,189 6.50
51-60 12,415 4.39 5,090 13.23 11,155 5.95
61-70 10,274 3.64 404 1.05 8,988 4.79
71-80 8,267 2.93 5,805 15.08 4,116 2.19
81-90 7,364 2.61 0 0.00 6,251 3.33
91-100 5,544 1.96 2,671 6.94 4,813 2.57
Total 282,603 100 38,483 100 187,497 100
1: Sales from pulp, paper, converting and merchanting only. 2: Only companies making and reporting market pulp are included. 3: Only companies making and reporting paper and board are included.
PPI Top 100 of 2009 in alphabetical order
Rank Company
AbitibiBowater 22
Advance Agro 97
Ahlstrom 65
Amcor 18
Appleton 72
Arauco 45
Arctic Paper 93
Billerud 68
BILT Ballarpur Industries 95
Boise 37
Buckeye Technologies 84
Burgo Group 32
Canfor 78
Cascades 23
Catalyst Paper 63
Celulose Nipo-Brasileira (CENIBRA) 98
Cheng Loong 70
Chuetsu Pulp and Paper 67
Clearwater Paper 61
CMPC 31
Daio Paper 20
De La Rue 83
Domtar 17
DS Smith 43
Durango 82
ENCE 100
EUROPAC Papeles y Cartones de Europa 96
Exacompta Clairefontaine 87
Fedrigoni 71
Fibria Celulose 28
Glatfelter 59
Graphic Packaging International 21
Greif 99
Hansol Paper 62
Hengan International Group Company 60
Hokuetsu Kishu Paper 42
Holmen 40
Hunan Tiger Forest & Paper Group 80
International Paper 1
ITC 90
KapStone Paper and Packaging 91
Kimberly-Clark 8
Klabin 50
Koehler 85
Korsnäs Holding 69
Lecta 41
Lee & Man Paper Manufacturing 48
LEIPA Georg Leinfelder 75
Lenzing Group 46
Marubeni 11
Mayr-Melnhof Karton 33
Mercer International 79
Metsa-Botnia 57
Mitsubishi Paper Mills 36
Mondi 9
Moorim Paper 74
M-real 24
MWV 12
Myllykoski 44
Nampak 64
Neenah Paper 94
NewPage 25
Nine Dragons Paper Group 39
Nippon Paper Industries 6
Norske Skogindustrier 26
Oji Paper 3
Packaging Corporation of America 34
PaperlinX 14
Papierfabrik Palm 55
Portucel Soporcel 49
Prinzhorn Group 54
Procter & Gamble 2
Rayonnier 73
Rengo 19
Reno de Medici 92
RockTenn 30
Sappi 16
Schweitzer-Mauduit International 86
Sequana Capital 13
Shandong Chenming Paper Holdings 35
Shandong Huatai Paper 89
Siam Cement 56
Smurfit Kappa Group 10
Smurfit-Stone Container 15
Södra 53
Sonoco Products 29
Stora Enso 5
Sun Paper 81
Suzano Papel e Celulose 38
Svenska Cellulosa Aktiebolaget (SCA) 4
Tembec 58
Temple-Inland 27
Tokushu Tokai Paper 77
UPM 7
Verso Paper 51
VPK Packaging 88
Wausau Paper 66
West Fraser Timber 76
Weyerhaeuser 47
Yuen Foong Yu Group 52
Missing in action
We get questions every year about why some prominent companies are not in the Top 100. The reason is most of these missing companies are privately owned and they do not make their financial results public. Below is a list of firms that would almost certainly make our list if their financials were available: APP; APRIL; Carter Holt Harvey; Georgia Pacific; Ilim Pulp; Irving; Kruger; Grupo Orsa; Saica; Visy and Pratt Industries ; White Birch Paper.
Also, Newark, FiberMark and Caraustar have all been companies in the Top 100 list previously but have not released financial results recently due to Chapter 11 status. Fraser Papers, also a previous contender has now been sold.

See Related Tables (pdf format):