In order to prepare Kotkamills Absorbex Oy, a subsidiary of Kotkamills Oy and the leading global supplier of Laminating Papers, to meet the increasing demand, as well as to replace the discontinuing production volume of Paper Machine 7 in Tainionkoski, Imatra (Stock Exchange release on the 3rd of July 2017), Kotkamills Oy has started the pre-feasibility study of a new Paper Machine 3 (PM 3) in Kotka. The final decision of this possible investment will be done by the end of year 2018. The capacity, cost estimation and start-up timing of the the PM 3 will be published later on subject to the positive investment decision. After the possible start-up of the PM 3, Kotkamills Oy is maximizing the integration advantages of the Kotka site. In addition to the efficient investment cost of PM 3 to the already available infrastructure, the energy and fixed costs per produced volumes of the whole integrated site would be lower than today. The possible investment would have a positive impact on the profitability of Kotkamills Group. Click Read More below for additional information.
Iggesund Paperboard is expanding in the Asia Pacific region and will open a sales office in Japan from 1 September. Over the past year Iggesund has established a service centre with sheeting and warehousing in Taiwan to cut lead times in the region.
Traditionally Iggesund has focused very much on Europe but we are now prioritising work to increase our global sales,” explains Arvid Sundblad, Vice President Sales and Marketing for Iggesund. “For more than a decade we have seen the conversion of packaging for consumer goods move from western Europe to other parts of the world, mostly in the east,” he says. “Brand owners with headquarters in one part of the world can have the manufacturing of both their goods and packaging in another. This is globalisation in a nutshell and we must adapt to it.”
The Japanese paper and paperboard market is known for its high demands on quality. Iggesund’s flagship product, Invercote, will be the cornerstone of the new venture. The paperboard is well established in the highest quality segments in the more than 100 national markets where it is sold. It is made of virgin fibre and meets exacting standards of purity, so it should do well in Japan.
“When we decided to focus more on global sales, one of the first steps was to develop our delivery service outside Europe,” explains Ivan Chong, President of Iggesund’s Asia Pacific operations. “Since then we’ve built up new inventory and sheeting facilities on the US West Coast and in Taiwan. The result is radical reductions in lead times to Asia.”
Iggesund has been represented in both Singapore and Hong Kong for almost two decades now and has been successful in building sales over that period. The improved availability means there are good prospects for the company to reach a wider market not only in Japan but also in the Asia Pacific region generally.
“The improved inventory and service are a game changer for us,” Chong says. “Now we can be competitive in contexts where before we weren’t even an option due to the lead times. We’ve already gained a number of new orders due to our new delivery capacity.”
“We have great respect for Japanese business culture and are therefore only recruiting Japanese staff,” Chong explains. “We believe that this factor, together with our long-term commitment, will be decisive to succeeding in Japan.