UPM-Biofore-Magazine-2-2014-EN

CHINA’S SHARE OF GLOBAL GDP GDP adjusted by purchasing power parity in US dollars

0.15

0.10

0.05

1990

1997

2004

2011

2018

Source: The Economist Intelligence Unit

GDP USD

13,390 billion (2013) 12,430 billion (2012) 11,540 billion (2011)

Close cooperation with customers According to Ali Malassu, a company that selects the right products, market areas and customer segments will prosper in the current market situation. However, further measures will also be required as the competition gets tougher. “We must get as close to our strategic customers as possible and get them to commit to our business by providing better service than our competitors and devel- oping our cooperation. The importance of distribution channels will increase in the fine paper business,” Malassu says. UPM is one of China’s leading office paper manufac- turers. In coated fine paper, the company focuses on light- weight, high quality paper grades that printers use in magazines, catalogues and advertising leaflets. A number of magazines, including the Chinese version of Elle, are printed on fine paper manufactured by UPM. UPM is currently investing in label material production in China. “Once the new production line at the Changshumill is complete, we will be able to deliver products to our Asian

customers more rapidly and performproduct development based on the needs of the local markets.” The demand for environmentally friendly and certi- fied products will increase in Asia in the future. This will improve the competitiveness of companies like UPM. Malassu says that environmental matters are important to specific customer groups. These include global copy machine manufacturers and international publishers printing magazines or books in China. “We have been able to show them that UPM’s environ- mental investments in China have been at the same level as in Europe from the very beginning. This is a big competi- tive advantage for us compared to Chinese paper manufac- turers,” Ali Malassu says. Concern for the environment grows Malassu believes that environmental awareness will grad- ually increase everywhere in China. The smog threatening the health of city dwellers, factories polluting waterways and agricultural land, and toxic substances found in food have also alerted the authorities.

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