BRUSSELS, June 25, 2012 (RISI) -The RISI Top 50 Power List: 41 - 50
41. Marco Mensink,CEPI
Mensink is the extremely proactive deputy director general of CEPI where he is responsible for public affairs and climate change and energy issues - quite a workload. Before joining CEPI in early 2006, he worked for as Energy & Environment Director at the Royal Netherlands Paper and Board Association, representing the Dutch industry in Brussels. Mensink has generated something of a reputation for straight talking when it comes to environmental issues within the industry, and a panel discussion where he is taking part is guaranteed to see sparks fly with his sharp comments and direct, sometimes humorous responses. He has been instrumental in the devising and production of CEPI'sUnfold the Future - 2050 Roadmap to a Low Carbon Bio-economy,of which he says: "There are only 40 years between now and 2050, and in that time, carbon emissions have to be cut by 80%. That only allows 10 years for concepts, 10 years for design, 10 years for testing and 10 years for effective production. Suppliers to the industry must move now".
42. Emmanuelle Neyroumande,WWF
Neyroumande is Pulp & Paper Strategy Manager for WWF International. As well as leading campaigns against companies it believes to be endangering the planet and wildlife, Neyroumande also spearheads activities such as the WWF's Environmental Paper Company Index, which rates paper producers on their global footprints. In the latest index, 19 paper producers have allowed WWF to scrutinize their global paper production on key environmental criteria, such as fiber coming from well managed forests, clean production and public reporting. WWF says the number represents fewer than half of the "globally significant" pulp and paper companies invited to provide the information.
43. Roger Stone,KapStone
This wily veteran of the paper industry is said to be looking at purchasing the three International Paper containerboard mills that it must divest. The competition will be tough but Stone has been around long enough to know the game well. KapStone has just amended its bank credit agreement, expanding it by 50% to $450 million. Since its formation in 2005, KapStone has acquired three separate containerboard and kraft paper producers/mills. In the first quarter, 2012, KapStone's sales surged 45% to a record $300 million based on its U.S. Corrugated acquisition. Speaking about the results, Stone said the company is in "an excellent position to continue growing profitably."
44. Yang Yanliang,Shandong Bohui
Shandong Bohui is a relative newcomer for the paper industry in China. Founded in 1994, however, its development has been fast. The company was included in thePPI Top 1002011 - it came in at 94 after just missing the 2010 list - and is definitely worth watching for the year 2012, mainly for its eye catching new installation. The listed Chinese company is splashing out RMB 3.1 billion ($470 million) to build a 1 million-tonne/yr cartonboard machine at a greenfield mill in Dafeng, Yancheng city, Jiangsu province. However, the coated ivory board market's competition is fierce. Nine Dragons, Lee & Man Paper Manufacturing and Sun Paper have started in, or have planned to expand into, the sector. In addition, major producer APP has already built up a strong foothold in the southern and eastern parts of the country. Currently, Shandong Bohui Paper Industry boasts an annual capacity of 1.25 million tones at its existing Zibo mill, which includes 700,000 tonnes/yr of cartonboard, 150,000 tonnes/yr of gypsum paper, 150,000 tonnes/yr of containerboard and 250,000 tonnes/yr of printing and writing paper.
45. Xu Lianjie,Hengan
Xu Lianjie, CEO of Hengan International Group is this year's winner of the RISIAsian CEO of the Year Award. Hengan International Group is a Hong Kong listed company and a leading tissue producer in China. Mr. Xu is one of the founding shareholders of the company and he was selected as this year's winner due to the company's solid financial performance in 2011 and overall leadership. Tissue was one of the few paper grades which had a good financial performance last year in China, and Hengan was playing a leading role in the industry with its branding strategy and innovative spirit. Xu is responsible for strategic planning, human resources and the overall management of the Group. His achievements in the industry have led to many titles. From the recent interviewPPIhad with him, he seems to be down to earth and is clear about the company's competitive edges-"Selling tissue paper is nothing like selling bulk cargo. Your products are going directly to the consumers," says Xu. The company, founded in 1985, has been growing fast and will expand ambitiously this year, both in its established base (Jinjiang, Changde and Weifang) as well as new bases (Wuhu and Chongqing). The company's tissue capacity is expected to reach 900,000 tonnes/yr. It is estimated that capacity will reach 1.2 million tonnes/yr by 2015.
46. Aida Greenbury,APP
Holding the title of Managing Director of Sustainability and Stakeholder Engagement at APP is probably one of the hardest jobs in the global industry, but Greenbury continues to operate with customary relish, passion and energy. The company has just launched its Sustainability Roadmap for 2020 which it believes will "chart a course to world-class industry standard in a sustainable business", and help it in its efforts to become the world no. 1 supplier of paper. The 2020 Roadmap is an ambitious one which Greenbury admits is going to be a long hard task, but one worth embarking upon, she says: "Some of the most noteworthy sections of the roadmap are those which define how APP plans to embed the principals of sustainability into our operations. We have a whole new set of policies on corporate governance and oversight which should satisfy anyone who doubts whether APP is really serious about its commitment". It remains to be seen how the NGOs are going to react to the Sustainability Roadmap for 2020.
47. Charles Schorr,Duro Bag
As CEO and owner, Charles (Charley) Schorr has captured about 70% of North America's declining bag market and is legendary as one of the most astute and clever paper buyers, playing mills off against each other and finding new sources of supply, either offshore or from mills recently converted to packaging grades. He has created a strong and fairly profitable business, basically by buying paper at the very lowest prices and serving customers (supermarkets) that are tough buyers. He pulls a lot of strings behind the scenes in what is happening in this sector of the market and is very good at making things work in his favor. According to one RISI source, everyone in this sector has a "Charley story".
48. Jurgen Heindl,Progroup
Building on several recent expansions, CEO Heindl sees Progroup AG progressing exactly according to plan. After opening the largest corrugated paper mill in Germany in 2010 for Propapier, the papermaking division of the group, Heindl now wants to "improve performance all the way, maximize and optimize everything that is under Progroup's roof." Setting its third world record within two years, Propapier's
PM2 at the Eisenhüttenstadt mill became the first paper machine for corrugated base paper to achieve an average production speed over 100 km/hr; an outstanding display of teamwork says Heindl. "It is an impressive example of what motivated and highly skilled teams can achieve by working together to get the maximum out of modern papermaking technology." Still calling Progroup a "young and innovative start-up company" after 19 years, Heindl has no plans of slowing down as future plans call for new innovations, strong network management and a consistent supply
Starbucks is our representative this year for all consumers. In 2010,PPIreported that Starbucks alone purchased three billion hot cups annually. Think of all the other chains that buy hot and cold cups not to mention the thousands of tons of tissue products that each must purchase. The recycling of coffee cups is such an issue that Cup Summits have been held. Starbucks engaged the Massachusetts Institute of Technology and the Society for Organizational Learning to help explore a system thinking approach to cup recycling, leading to the Cup Summits. Georgia-Pacific has been involved as well. Starbucks has worked with various mills including Pratt Industries and International Paper. A trial run at IP's Mississippi River Pulp's mill showed coffee cups can be recycled into new paper cups. Since 2008, Starbucks has implemented recycling in 18 markets. Starbucks' goal is to ensure 100% of its cups are reusable or recyclable by 2015.
50. US presidential election
The economy has been a decisive issue in four of the last five US Presidential Elections. Since the mid-1970s, presidential politics has turned decidedly toward domestic issues as opposed to foreign policy. While voters often go to polls with their pocketbooks, the end result could have wider repercussions. The next administration's approach to industry regulation will have longer lasting effects.
This year, as with each quadrennial presidential election, the entire US House of Representatives and one-third of the US Senate will be elected. These results could carry more weight, especially if one party is able to capture both houses. A Republican Congress, with a Republican president, will undoubtedly embark on a massive program of debt reduction and efforts to free capital markets. Democratic control will most likely focus on social programs and regulatory controls. However, current polling suggest more of the same - a divided Congress and bitter partisanship for four more years - a result nobody wants.
Also meriting consideration
Although the following people/things did not make the Top 50 list, they all received strong consideration.
Vinod Khosla,Khosla Ventures
Despite the failure of one of its earlier backed projects, Range Fuels, Khosla is a driving force behind cellulosic biofuel advancement. Its portfolio includes cellulosic ethanol producers Mascoma and Coskata as well as advanced biofuel company KiOR, all leaders in the race to develop liquid fuels from wood-based cellulose.
Marc-André Dépin,Cascades Norampac
A newcomer to the list, Dépin deserves recognition for his leadership in completely overhauling Cascades' containerboard division. Including creating a joint venture to build the largest new lightweight recycled containerboard mill in North America (Greenpac), scheduled for startup in 2013. As a result, the company has been able to shut down older, higher cost facilities in Canada. In the words of one RISI source, He has turned the company "inside out" to reduce costs and increase its competitiveness while shifting its focus to the US from Canada.
Li Jianhua,Shandong Huatai Paper
Though newsprint's demand in China is sluggish, Shandong Huatai Paper, the traditional newsprint producer in China still climbed up a bit in thePPI Top 1002011 and ranked 79 compared with 89 in the previous year. The latest project with the company includes a 150,000-tonne/yr uncoated fine paper (UFP) PM and a 150,000-tonne/yr bleached kraft pulp line at a greenfield mill in Anqing city, Anhui province. The fiber line is a swing unit which is able to manufacture dissolving pulp (DP) at a rate of around 120,000 tonnes/yr to take advantage of the lucrative DP market amid overcapacity concerns. The Anqing expansion is part of the firm's strategy to expand in provinces other than its base in Shandong. A city along the Yangtze River, Anqing boasts good transportation infrastructure, as well as abundant forest resources, especially in terms of masson pine.
At the time of writing, the US Fed has not announced whether it will undertake another round of quantitative easing (QE). Recent remarks by Fed Chairman Ben Bernanke seem to indicate some monetary action will be taken to spur the economy. Critics say QE has done little to stimulate spending, merely increasing public debt levels. Proponents counter that earlier easing has been too small to move the world's largest economy in any direction. If the Fed does act, most anticipate a short-term bounce that could carry through the summer.
Industry should rightly be concerned with untenable public debt levels or increasing inflation, but it's unclear whether those levels have yet to be reached in the US. Analysts suggest that since earlier QE has not been able to permanently affect unemployment rates, perhaps its time for capital markets to work on their own. One thing is certain: There is little hope for increased demand until the economy and consumers' appetites return.
The RISI Top 50 Power List: Introduction
The RISI Top 50 Power List: 1 - 10
The RISI Top 50 Power List: 11 - 20
The RISI Top 50 Power List: 21 - 30
The RISI Top 50 Power List: 31 - 40