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RISI launches new web-based cost benchmarking application

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RISI launches new web-based cost benchmarking application

November 15, 2010 - 23:59

ATLANTA, GA, Nov. 16, 2010 (Press Release) -RISI, the leading information provider for the global forest products industry, announced today the release of its new cost benchmarking application, Analytical Cornerstone 4.0.

The new platform provides new tools and easier access to RISI's cost benchmarking data covering over 100 grades, sub-grades and products at pulp and paper mills worldwide. The service provides the most accurate estimates of comparative mill and machine competitiveness in the pulp and paper industry, compiled by RISI's unmatched network of engineers and analysts located around the globe.

"Over the past 15 years, clients have used our cost benchmarking model to understand the cost of producing pulp and paper grades by mill and machine," said S.P. Raina, Vice President of Mill Intelligence at RISI. "We have combined the firsthand papermaking experience and deep knowledge of our engineers with best-in-breed software technology to provide superior content and capability to our clients in a more intuitive, online environment; without the need to download additional software."

Product Highlights

  • Cash Cost reports: users can compare manufacturing costs across machines and mills in user-defined markets.
  • Total Cost reports: includes all a mill's costs, such as Capital Cost (capital investment charge and annual depreciation), SG&A Cost (operating expenses plus also taxes, and inventory charge), and Cash Cost (manufacturing costs) to produce a total cost picture that is then used in the Profitability report.
  • Profitability reports: these reports allow you to compare profitability of mills and machines in user-defined markets.
  • Capacity reports: total capacity for user-defined markets can be calculated, as well as capacity by individual mill and machine.
  • Mill performance analyses: users can compare mills and machines on custom-built cost curves using a variety of reporting features, as explained above.
  • "What-if" scenarios: scenarios can be created to measure the impact of potential market-or-mill-level changes on various mills and machines.

Product Applications

Pulp and Paper Producers

  • Strategic Planning - Assess a mill and/or machine's cost position compared to other competitive assets.
  • Mill Operations - Optimize production, identify opportunities for cost reduction, discover new best practices, and measure opportunity and risk.
  • Sales & Marketing - Understand which mills can profitably serve which markets, and who will be the ‘winners' and ‘losers' based on different scenarios.
  • Financial - Analyze mill cost positions and model the effects of shifts in exchange rates and input costs on a business.
  • Risk Assessment - Assess individual mills and machines at risk of closure.

Suppliers to Pulp and Paper Producers

  • Sales - Uncover new business opportunities by researching prospects and prioritizing sales efforts. Determine a territory configuration by assessing the risk for individual mill/machine shut downs or conversion opportunities.
  • Marketing - Generate targeted marketing efforts and conduct market research on specific needs of local, regional or global mills. Run ROI scenarios for project implementations.
  • Risk Assessment - Assess individual mills and machines at risk of closure due to high cost and other factors; use this information in determining potential lines of credit to be issued and which producers will provide stable, long-term business relationships.

Financial Institutions

  • Investment Manager & Analysis - Evaluate companies for potential investment opportunities; qualify cost positions of individual mills; understand implications of mill cost to efficiently determine a company's competitive position.
  • Risk Assessment - Assess individual mills and machine's at risk of closure due to high cost and other factors. Analyze risk and opportunity for debtor-in-possession (DiP) financing.

Consumer Products Companies

  • Purchasing - identify key mills/companies that are supplying applicable grades for end use products. Compare products cost by machine.
  • Financial - Analyze mill cost position and model the effects of shifts in exchange rates or input costs on your business.
  • Risk Assessment -Identify mills/companies that are positioned as long-term secure suppliers.