
Representing the values and importance of the national paper industry
CELPA members’ turnover in 2016 was 2,538 million euros. This cluster creates 90,000 jobs directly, indirectly and indirectly. Figures that attest to the strategic importance of the sector for the Portuguese economy and territory.
The Paper Industry Association (CELPA) resulted from the 1993 merger between ACEL (Association of Pulp Producers) and FAPEL (Portuguese Association of Paper and Board Manufacturers). It is a non-profit organization that brings together the Altri group, Europa&C (Kraft Viana), The Navigator Company and Renova.
CELPA’s member companies are responsible for 100% of the country’s production of virgin fiber paper pulp and around 80% of the country’s paper production. They process around 8 million cubic meters of eucalyptus and pine wood every year and manage around 199,000 hectares, on their own and leased properties, the vast majority of which have certified forest management (FSC and PEFC).
In an interview with Altri News, Carlos Amaral Vieira, director-general of the Paper Industry Association, discusses the role the association plays in promoting and defending the collective interests of the pulp, paper and cardboard industry and related activities, with national and international public and private entities and bodies, and highlights the strategic importance of this cluster for Portugal.
How is the pulp, paper and cardboard sector doing in Portugal?
It is recognized that the Portuguese pulp, paper and cardboard industry is of significant strategic interest to Portugal.
The pulp and paper industrial sector is of enormous importance to the Portuguese economy, with special emphasis on the export market, being one of the largest exporters of national added value. Its activity is based on strict respect for natural assets and ecosystems, namely soil, water, air, forests and biodiversity.
It represents a forest-based industry that uses national and renewable raw materials and exports almost all of its production to around 140 markets. It competes in an extremely competitive world market and contributes to reducing the country’s trade deficit.
It is Portugal’s second or third largest net exporter of tradable goods. In 2015 and 2016, according to INE, the “cellulose pulp and paper” sector was the second largest sector in the trade balance, behind “minerals and ores”.
The industry sources around 70% of its raw material needs from the many hundreds of national forest producers and owners for whom this income is crucial. We have a good story to tell!
How do you classify the folders and papers produced in Portugal?
They are quality leaders in the world, not only because of the very high technology present in the industrial units, but above all because of the excellence of the eucalyptus globulus fiber, the forest species that the country has the virtue of having in its territory.
The paper industry has the capacity to promote exports, to balance the trade balance and to contribute to the socio-economic dynamism of the country and to the development of the business fabric of the abandoned interior. It does so by creating jobs and value, both directly and indirectly, through different business opportunities, ranging from the sale of forestry goods and services to the provision of various services in areas where income alternatives are scarce.
The industry sources around 70% of its raw material needs from the many hundreds of national forest producers and owners for whom this income is crucial. We have a good story to tell!
What is the most important project in the sector?
One of the most important projects we are currently working on is the Better Eucalyptus Project. The main objective is to pass on the best forestry management practices followed by the paper industry to producers, owners, associations and forestry technicians, in order to promote improved forestry productivity and its environmental and social influence (the slogan is: Environmental Respect, Natural Gain.
How do you analyze the evolution of exports of your members’ production over the last two years?
The quality of Portuguese paper products has allowed the growth trend of the last decade to continue, despite the downturn in consumption and the economic crisis felt throughout Europe.
According to the latest available data, pulp exports reached 1.2 million tons in 2016 and paper and board foreign sales stood at 2.15 million tons.
What was the sector’s turnover in 2015 and 2016?
The turnover of CELPA members was 2,647 million euros in 2015 and 2,538 million in 2016.
How many associate factories are there in Portugal?
There are nine associated factories in Portugal.
How many hectares of forest do CELPA members own?
CELPA’s members are responsible for the direct management of around 199,000 hectares, in their own and leased properties, which corresponds to 2.2% of the national territory. Of these, 165,000 hectares are occupied by forest (152,000 with eucalyptus, 7,000 hectares with cork oak and 6,000 hectares with maritime pine), which represents 5.2% of the national forest.
Are these hectares managed directly or by forestry producers from whom they buy raw materials?
This area is managed directly. The evolution of the forestry area of CELPA’s members is the result of both changes in land ownership (purchase and sale of assets, termination and conclusion of lease agreements) and changes in the land use profile of existing areas.
How many people does this cluster employ?
CELPA’s members directly employ around 4,000 workers and represent around 90,000 direct, indirect and induced jobs.
In terms of production, what is the reality of the sector in Portugal compared to Europe?
In 2016, European pulp production increased by 2.7% compared to 2015, standing at 37.2 million tons. Portugal is Europe’s third largest pulp producer, accounting for 7.3% of all pulp produced in Europe. As far as paper is concerned, Portugal ranks 11th among European paper and cardboard producers, with 2.5% of the total.
An analysis by type of paper reveals that the country is Europe’s second largest producer of uncoated woodfree papers (UWF), with 18.3% of the total production of this type of paper.
What are the main trends in the sector internationally?
In recent years, the paper and board production of the 18 members of CEPI (Confederation of the European Pulp and Paper Industry) has been relatively stable, with a marginal reduction at the 91 million tons level. Given that installed capacity is around 100 million tons, this meant an operating rate of 90.6% in 2016 (91.1% in 2015).
Globally, production in 2016 in Brazil, the USA and Canada was down on the previous year. Japan, South Korea and China saw increases. The percentage changes, however, do not exceed the absolute value of 1.6%.
What types of paper have been consumed more?
Packaging paper, hygiene/household paper and some specialty papers saw an increase in production and consumption. In the opposite direction, newsprint and printing and writing paper saw reductions in production and consumption.
Newsprint saw a drop in production of 6.7% compared to 2015. Uncoated Woodfree Grades (UWF), which include office papers and offset papers for the printing industry, maintained relative stability in demand in Europe.
Paper pulp production in Europe in 2016, after a few years of decline, increased by 2.7% to 37.2 million tons, of which 25 million were chemical sulphate pulps. Fibers from paper for recycling accounted for around 46% of the raw material used in paper production in CEPI member countries that same year. On the other hand, virgin fibers obtained from woody material, virgin paper pulp, accounted for around 40%.