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South America forecasted to become a competitive force in forest, paper, and packaging industry

Wednesday, April 03, 2013

Press release from the issuing company

NEW YORK -- Significant capacity expansion plans in South America are set to add between 20 to 30 million metric tons of chemical pulp to the global forest, paper, and packaging (FP&P) market by 2020. This is according to the 2013 Global forest, paper, and packaging trend watch: A changing landscape: South America's influence on global markets report released today by the Deloitte Touche Tohmatsu (DTTL) Global Manufacturing Industry group.

The report highlights the growing influence of South America on the global FP&P industry as an emerging consumer base as the region's reliance on paper imports to satisfy growing demand is expected to continue.  It also forecasts that South America, with its current investments into state-of-the-art production facilities, could also stake a competitive position in global markets.

"The planned expansions of chemical pulp will likely have a profound impact on the global market and will likely influence strategic investments by producers over the coming years," said John Dixon , Global Forest, Paper, & Packaging Sector Leader, DTTL. "For example, certain European FP&P companies have already made significant investments in South America. The new technology and more efficient processes in the state-of-the-art mills serve as a competitive advantage to companies in the region."

According to the report, seven to eight million metric tons from five South American producers are expected to be available in 2014 targeted mainly for the export market. "With overall global demand light, South America's export competitiveness might be tied to their most significant trading partner, China, in the years to come as China remains the largest global consumer of chemical pulp," said Dixon.

The report concludes that open markets, renewed European and North American consumption, and meeting forecasted Chinese demand are needed to support longer-term growth for the global FP&P industry. Additionally, it discusses South America's potential to emerge as a significant force in the industry, driving other regions to take notice and adapt accordingly.

"The global FP&P companies that have made strategic investments in emerging markets such as those in South America will likely have a competitive advantage as the industry continues to evolve in the future," adds Dixon.

To download the 2013 Global forest, paper, and packaging trend watch: A changing landscape: South America's influence on global markets report, please visit www.deloitte.com/fpp.  

 

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Label & Packaging Editor

Jennifer Matt

Patrick Henry, Section Editor
Pat has covered graphic communications for nearly 30 years as a reporter, an editor, and a commentator.

 

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