PRESENTATION OF THE ANNUAL REPORT AND STATISTICAL UPDATE SUSTAINABILITY REPORT

Paper industry still fragile and in a context of uncertainty Recovery

• Among the six major paper producers in the EU, Spain is who else grows in 2015
• FIRST QUARTER 2016: paper production grew 4.7% (January-May the figure is 2.6%, because production in   April grew only 0.6% in May and down 1%)
• FIRST QUARTER 2016: paper consumption grows 8%
• Exports down for the loss of competitiveness resulting from energy reform. Nevertheless, Spain exports 45% of paper and 44% of the pulp produced
• The increase in investment of 29% in 2016, confirmed the new investment cycle started in 2014.
• With 71 paper mills and 10 pulp, the sector directly employs 16,320 people, to which must be added 85,000 indirect jobs. Employment remained broadly stable in 2015.
• In the last ten years accident rates have been halved.

The year 2015 is the beginning of recovery in the sector, which finally sees growing paper production, although still far from able to harness the pull of domestic demand. The 2.6% increase in paper production is still well below the 5.6% growth of the internal market, which has been covered largely with imports, which recorded an increase of 2.3%. Regress paper exports by the loss of competitiveness resulting from the energy reform and decreased 4.1% in 2015, according to ASPAPEL that this morning the Annual Statistical Report and Paper Sector Update 2016 Memory Paper sustainability.

“The main challenge now explained ASPAPEL president, Enrique Isidro is the consolidation of this emerging and still fragile recovery. This requires improving the competitiveness, create a breeding ground in which industrial activity can develop. And that goes for a competitive price of energy for industry, infrastructure development and regulation that will improve the logistics and transport, defense of the interests of the Spanish and European industry in the context of trade policy EU and encouraging R + D + i “.

still fragile and in a context of uncertainty Recovery
“Proof of that fragility of the recovery Isidro- added is that while the data for the first quarter of this year pointed in the same direction recovery in the second quarter is detecting a clear slowdown”. The cumulative growth of paper production in the first quarter of 2016 is 4.7%. But the data from January to May is 2.6%, because production in April grew only 0.6% in May and down 1%.

 

Among the six major paper producers in the EU, Spain is who else grows. Germany, the first European manufacturer, is maintained at a similar volume to 2014. Large Nordic Sweden and Finland producers are cutting production, like France. And only Italy, with an increase in paper production 2.2%, approaches the Spanish figure of 2015.

Special papers (15.3%) and hygiene and health (9.2%) were the fastest growing in 2015. The papers for graphics applications (press and printing and writing) recovery began in the second quarter of 2015 and the aggregate of the year still recorded red numbers with a decline in production of 1.6%.

Finally, packaging papers are finding in the growth of electronic commerce an important lever for growth. More than half of the paper production in Spain is concentrated in packaging papers.

With respect to cellulose, there has been a severe adjustment capacity with the closure of a plant at the end of last year, which marked the decline of production in 2015 of almost 12%. However, production of integrated cellulose, produced for own consumption, increased 0.8%.

Consumption: clear recovery, but asymmetric

In fiscal 2015 paper consumption recovery begun last year and consolidated. The consumed 6,607,300 tons represents an increase of 5.6%, which doubles the growth of the previous year and well above the increase in GDP. Despite this pace of recovery, we are still far from the record high of 7.9 million tonnes recorded in 2006.

Recovery is asymmetric for different media. The greatest increases are found in the paper for packaging, an increase of 8.2% on paper for corrugated cardboard, 6.8% in coated paperboard and 9.3% in other papers for packaging (kraft paper bags, paper bags, paper / cardboard tubes, molded pulp products such as egg cartons, etc.). The consumption of paper for hygienic and sanitary use is also growing at a good pace (5.3%). On the contrary, graphics papers (newsprint and printing and writing paper) still recorded a slight decrease of 0.1%.

The packaging papers account for 62% of total paper consumption in our country, followed by graphic papers (22%), hygienic and sanitary (10%) and specialty papers (6%).

Spain is the fifth largest consumer of paper in the EU, behind Germany, Italy, United Kingdom and France. Per capita consumption was 142 kilos, 135 kilos compared to the previous year.

 

Decline in exports
The loss of competitiveness in the sector caused by the additional costs resulting from the energy reform -Competitiveness only partially recovered, is at the root of the behavior of foreign pulp and paper market in 2015. Thus, in the case of paper, exports 4.1% fall.

Nevertheless, the sector continues to show its export strength: Spain exports 45% of paper and 44% of the pulp it produces and exports account for 57% of the sector’s turnover.

The new investment cycle started in 2014 is ratified
Sector investments in 2015 amounted to 177 million euros and kept in line with the previous year, which had marked the beginning of new investment cycle with growth of 23%.

228 million investment planned for 2016 confirms that investment trend with a further increase of 29%.

In the last ten years, despite the crisis, the sector invested nearly 2,800 million euros. It is primarily aimed at increasing investment in production capacity, cost reduction and technological renovation and innovation as well as quality and the environment.

71 paper mills and 10 pulp
The paper sector in Spain has 10 plants manufacturing pulp and paper mills and 71 acts as a social backbone of many communities across the country, some of which is of key importance in creating wealth and employment.

The sector directly employs 16,320 people, to which must be added 85,000 indirect jobs. The workforce remained almost stable in 2015.

 

The accident rate dropped by half in the last ten years
Stability in employment, continuing education and risk prevention are basic elements of human capital management in the Spanish paper industry.

ASPAPEL develops an ambitious program of PRL in collaboration with unions and with the participation of companies.

Despite a slight rise in 2015, in the last ten years (2006-2015) have occurred accident rates have been halved. The incidence rate has gone from 58 to 31.5, the frequency is reduced from 35 to 18 and gravity from 2 to 0.6.

 

Source: Aspapel.es