PULP & PAPER INDUSTRY IN PAKISTAN 5.3.2014. PAKISTAN’S PULP & PAPER MARKET OVERVIEW 1.2 Mio. ton paper & paperboard market, of which around 30% is imported.

PULP & PAPER INDUSTRYIN PAKISTAN

5.3.2014

PAKISTAN’S PULP & PAPER MARKET OVERVIEW

• 1.2 Mio. ton paper & paperboard market, of which around 30% is imported

• Local production dominates due to high import duties for paper (20-25%) and ongoing anti-dumping investigations

• Imports mainly in higher value added products such liquid packaging board (from Sweden) and coated paper/paperboards (from China, South Korea)

• No larger scale exports

• Local paper & board capacity is 1.0 Mio. tons, largest product area container boards. Main challenge for the domestic industry is lack of reliable energy supply

• Paper & board consumption per capita 7-8 kg per annum

• Raw materials used; imported wood pulps, domestic OCC/ONP and non-wood materials (mainly wheat straw). Only one domestic wood based pulp mill, currently non-operational

• Industry concentrated in the vicinity of Lahore in Punjab

• Several companies planning rebuilds & new investments

INDUSTRY CONCENTRATION CLOSE TO LAHORE IN PUNJAB STATE

Main reasons for this;

• Non-wood raw material such as wheat straw availability; still used in paper manufacturing & energy production

• Availability of water

• Largest market area; Punjab State has 90 Mio people of Pakistan’s total 200 Mio.

• All agricultural raw material based manufacturing concentrated in Punjab

• Punjab offers a good access to Northern Pakistan & Afghanistan market

FUTURE DIRECTION OF THE INDUSTRY

• Stora Enso’s joint venture Bulleh Shah Packaging will be setting quality benchmark for the local manufacturing

• Existing producers seeking knowledge transfer, rebuilds and improvements in their process, raw material and energy efficiency

• Main domestic product focus areas; recycled fibre based testliner/fluting, WLC (white lined chipboard), wood fibre based copy paper

• Tissue consumption at nascent state, but rapidly increasing

• New domestic entrants to P&B industry looking for paper/board machinery and collaboration partners

MAIN BUSINESS OPPORTUNITIES FOR NORDIC SUPPLIERS

• Paper & Board and pulping machinery

• Improved cost competitiveness:

• Energy and Paper/Board process efficiency

• Solutions increasing fibre yields of domestic recycled fibre

• Products’ raw material mix improvements

• Energy and Paper/Board manufacturing solutions from biomass (wheat straw, rice husk, bagasse etc.)

• CTMP and softwood pulp supply

PAKISTAN’S PAPER & BOARD MANUFACTURERS

• Bulleh Shah Packaging Pvt. Ltd. , Stora Enso & Packages Ltd joint venture (capacity around 200,000 tons), located 45km from Lahore

• Century Paper & Board Mills (capacity 230,000 t/a), located 50km from Lahore (www.centurypaper.com.pk)

• Flying Group of industries (capacity close to 100,000 t/a), (www.flyingpaper.com.pk)

• Flying Paper Industries, located in Sheikpura, Punjab

• Flying Kraft Paper Mills, located in Charsadda

• Zaman Paper & Board Mills located in Sheikpura, Punjab

• Premier Paper Mills (capacity 25,000 t/a), Sheikhupura, Punjab, (www.premiergroup.com.pk)

• Other smaller producers: Malik Board, & Paper Industries, Hassan Board, Nazir Paper Mills, Taj Paper Mill, Mandiali Paper Mills, Jubilee Paper Mill, Horizon Paper Mill,

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PAKISTAN’S PAPER & BOARD MANUFACTURERS

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Map showing the locations of the

main paper & board manufacturers in Pakistan

1.Proximity of the city of Lahore in Punjab province, accounting more than 90% of the installed capacity

2.Selected smaller and lower quality producers