Pulp Matters 2/2022

F IBRE PHENOMENA

During the past 20 years, China has seen extraordinary and unnaturally fast growth.

Chinese consumers are increasingly interested in the issues of high quality and sustainability.

PLASTIC BEING PHASED OUT IMPROVES THE MARKET CHANCES OF SUSTAINABLE AND RENEWABLE PULP.

A s the market for tissue, for example, has matured, the attention of Chinese consumers has turned to such issues as high quality and sustainability. “We see that the same drivers that are potent in the West are gaining ground in China, too.” However, the headwinds of the Chinese economy have an impact here, as well. “Consumerism will slow down to some degree.” Nevertheless, Wright sees some exciting opportunities out there. China is a forerunner in the fight against plastic waste, with a plan in place to phase out manufacturing and circulation of single-use plastics. “China has shown they can adopt innovative, flexible policies.” As the globally biggest single market for pulp China is very important also for UPM Pulp. UPM has strong experience and knowledge of the Chinese market – in fact, the local APAC (Asia-Pacific) sales and service team has enjoyed a great 11-year run in China. Right now, the APAC team features 18 professionals. Senior Sales Manager Rachel Sun says that the growth of the Chinese middle class is certainly having an impact on the market. “With UPM you have a product that is sustainable and safe, with great quality – and this is something that the customers really respond to,” she says.

According to Sun, the APAC office is committed to supply chain security and always making the delivery window. “We see the customer as our partner and believe that we can grow together, as we have done in the past. We also want to pursue transparency in our actions at all times.” Whenever problems arise, this mindset of openness and doing things together helps to solve them. “We take challenges head on and overcome them,” she says. With the new Paso de los Toros mill soon delivering “a wave of pulp” to China, this will certainly impact various things. “This new volume will ease pressure on demand and supply, and we can serve more Chinese customers.” Sun believes that the competitiveness of UPM Pulp will increase with growing volumes, but also due to sustainability issues. “Our customers want to be more sustainable throughout their value chain, and with the new capacity we’re in a great position to support them.” Connie Bi , Sales Director for APAC, says that with the pulp volumes growing, UPM will take a more important role in the pulp market – and contribute to the healthy development of the local paper industry. “Our responsibility to the customer means supporting them with great quality and service,” Bi says, adding that APAC has a strong reputation as a promise-keeper in the market.

Rachel Sun, Senior Sales Manager, UPM Pulp, APAC

Connie Bi, Sales Director, UPM Pulp, APAC

being phased out, this is certainly improving the market chances of our pulp, which is a sustainable product made out of renewable sources.” Yet, uncertainties remain in the market, as both Rachel Sun and Connie Bi point out. The UPM APAC, however, has a very straightforward playbook for the coming years. “We want to keep doing great business – as well as be agile in our sales operations and emphasise customer focus at all times. That’s the best certainty one can have in uncertain times,” says Bi.

As the Paso de los Toros mill is set to take pulp volumes to the next level, Bi talks about a positive challenge facing the APAC sales team. “We’re excited about the opportunity to get a lot stronger as the pulp volumes grow,” she says, adding that the team has acquired three new members recently. B i also notes the anti-plastic stance of the Chinese government that is promoting the use of fibre based alternatives in a big way. “With plastic

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PUL P MAT TERS 02/2022