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APP Sees Lower Growth for Paper but Predicts Growth in Demand for Tissue Paper
APP global communications director Tan Ui Sian said the company, a subsidiary of local diversified conglomerate Sinar Mas Group, was looking to further expand tissue paper production. It is not the end of the world for paper producers in this digital era, as more offices have gone "green" and print less, because demand for tissue paper is on the rise as an essential hygienic need of everyday life. In the digital age, activities that were done on paper have now increasingly been replaced by a tap on a smartphone or a click of a mouse. Electronic books have forced a number of publishers and book stores across the globe to close down. Many newspaper businesses have also gone out of business with the rise of online news outlets. The tissue industry, however, is unaffected by such developments. "Demand for print paper will most likely shrink over the next few years because many offices have gone digital. APP is currently focusing on expanding its tissue business; our mill in OKI [Ogan Komering Ilir, South Sumatera] will largely focus on producing tissues," Tan said. Once up and running by the end of the year, the Rp 40 trillion (US$3 billion) mill is expected to be the largest of its kind in Asia, with a production capacity of 2 million tonnes/yr, a quarter of which is reserved for tissue. The remainder would be reserved to produce other products such as paper and packaging, among others. Indonesian Pulp and Paper Association (APKI) deputy chairman Rusli Tan said that the demand for tissue had increased not only in Indonesia but across other countries in the continent because of changing lifestyle habits. "For example, most public toilets these days provide tissues because it has become a necessity. Therefore, the tissue industry will grow at an extraordinary speed in the coming years," Rusli continued. |
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