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APP-China Sustainability Report 2010

APP-China Sustainability Report 2010

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Published by Asia Pulp and Paper

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Categories:Types, Business/Law
Published by: Asia Pulp and Paper on Dec 15, 2011
Copyright:Attribution Non-commercial


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The year 2010 marked a significant year for the paper industryin China. The Chinese paper industry, recovered from the globalfinancial crisis, continued to grow rapidly and steadily. In less thantwo decades China has become the largest paper and packagingboard producer in the world as a result of the surge in production bymajor domestic industry players. The opening up of the Chinese paper sector has also led to the restructuring of the global paper industry,bringing substantial investments from global giants in upgrading andmergers with domestic paper producers. All the increasing productioncapacity was realized in 2010. On the other hand, during this year theEuropean Union initiated anti-dumping and anti-subsidy investigationswhile the U.S. began to levy both anti-dumping and anti-subsidy duties
on imports of coated ne paper from China. Rising domestic capacity
and drastic reduction in export to the U.S. and European marketsposed dual challenges to APP-China.
In the meantime, erce global competition for raw materials, changes
in the Government’s policy towards foreign investments, andincreasingly stringent environmental compliance and regulations hasled APP-China to face with key global issues.In spite of these mounting pressures, APP-China, guided bythe company’s sustainability pledge
Paper Contract with China
,succeeded in achieving production volumes of 8 million tons andan export volume of 1.64 million tons of paper and packaging boardproducts in 2010. This accounted for 8.6% of the national productioncapacity and 37.9% of the total export volume of China’s paper 
industry*. APP-China’s total assets amounted to RMB96.834 billion(US$14.90 billion) with sales revenue of RMB37.915 billion (US$5.83billion) and prot of RMB2.517 billion (US$0.39 billion). This year’s
outstanding achievement was made possible by APP-China’smanagement team’s leadership in a rapidly changing market andour 38,900 employees’ commitment to the corporate philosophy of “Challenging Limitations and Pursuing Excellence”.With a keen eye on the changing business environment, APP-Chinaacted quickly in tapping into new international markets by increasingexport volume as well as improving product quality and creatingadded value for the needs of domestic customers. Spearheadedby the strong “Integration of Plantation-Pulp-Paper” green businessmodel, APP-China has remained competitive in securing rawmaterials by continuing to develop plantation sites and throughacquiring pulp mills in Asia. For the corporate management, 2010 was a year of implementationwith a focus on efficiency. To further reduce our greenhouse gasemissions and lower our overall environmental impact, APP-Chinaraised the bar on the efficient use of energy and water, power 
generation and power plant efciency, and the recycling and reuse
of production waste and byproducts. This strategy was proven asuccess, as evidenced by a strengthened competitive edge and areduction in production costs.We are proud that APP-China has one of the lowest consumptionsof energy and water per unit of production in the paper industry,both in China and the world at large. We have met the ambitious
environmental standards in the Yangtze River, Taihu Lake and
Hainan Island regions, which employ environmental standards morestringent than the national standards. To further the sustainabledevelopment of China’s paper industry, APP-China continues toshare our industry-leading sustainability practices and managementexpertise with our counterparts.APP-China places strong emphasis on employee and communitydevelopment. In 2010, APP-China founded APP University anddeveloped a succession plan to identify and cultivate an innovativemanagement team with insights and competence. As a strong advocateof corporate social responsibility, APP-China subscribes to the spiritof harmonious and economic development by providing employmentopportunities and growth in the regions in which we operate. In additionto acting quickly and effectively in contributing to disaster relief andrehabilitation, APP-China has been investing in education and trainingfor the underprivileged, promoting environmental protection, protectingcultural diversity, and supporting the Government’s modernization of agriculture and rural transformation. With the management team takingthe lead and translating words into actions, APP-China employees areencouraged to take part in community services, and individual employees’community service hours are critical towards their career advancement.In the light of intensified market competition, the integration of strategies and resources is crucial to APP-China’s sustainabledevelopment in the next three to five years. This includesconsolidating resources from APP-China’s various business units toaccelerate market responses, expanding into new markets throughmarket integration, consolidating financial resources to explorealternative financing options and solidify the firm’s financial risk
management, and building a diversied product mix with a focus on
creating high value added products to stimulate the industry valuechain. Given the global environmental changes and the NationalTwelfth Five Year Plan, APP-China will look into product life cycle toleverage our integrated plantation-pulp-paper model, and continue to
make improvements on the efcient use of resources and promote a
recycle economy with sustainable development.
Teguh Ganda WijayaChairman & CEOSinar 
as and APP-China
essage fromthe Chairman
* Information source:
China Paper Year Book 2011
, China Paper Association

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