Post on 07-Jul-2020
1
COMMERCIALIZATION OF PULP &
PAPER FROM OIL PALM EMPTY
FRUIT BUNCHES
MARKET OPPORTUNITIES
LOCALLY & GLOBALLY
DR. MOHAMAD JAMIL ABU HASAN
SEA PACIFIC PAPER TECH SDN. BHD.
BIOMASS TO ECO-PRODUCTSEU-ASIA BIOMASS BEST PRACTICES & BUSINESS PARTNERING CONFERENCE 2012
2
1) INTRODUCTION
� PROCESS
� PRODUCTS
2) MARKET PROFILE
� MARKET FORCES
� EXPORT
� LOCAL
� LOCAL MARKET EXPANSION
3) SUMMARY
4) APPRECIATION
AGENDA
3
PROCESS FROM EFB
TO PULP / PAPER SHEET
4
ECO-CONSUMER PRODUCTS
5
� MARKET FORCES - GENERAL
• Packaging Industry‐ Example: corrugated boxes ‐ Waste paper as the main raw material‐ Very competitive pricing
• Price is the dominant factor for locals
- Operational profit
- Consumers’ awareness is not there
- Little consideration for biomass based paper
� OPTED FOR NICHE MARKET
MARKET PROFILE
6
�PALMOR® PULP SHEETS – DIRECT EXPORT
• Buyers are manufacturer of high end specialty papers
• Non-wood pulp content as product’s main attraction
• Exporting to Japan
• Society’s acceptance for GREEN products
• End users willing to pay for environmental premium
• Current export volume: 120 MT per month
• Serious inquiries from Korea & Europe
• Demand to grow to > 300 MT per month soon
NICHE MARKET - EXPORT
7
� PALMOR® PULP SHEETS – INDIRECT EXPORT
• Local customers who manufacture & export their
end products
• USA and European Countries
• Example: Grocery Trays
• 100% Palmor® pulp as their raw material
• 40 MT per month
� LOCAL MANUFACTURERS
• Food trays for Universities
• 50% mixture of Palmor® pulp with white pulp
• 20 to 40 MT per month
NICHE MARKET - LOCAL
8
PRODUCT AWARD BY USA PRODUCE ASSOCIATION
- BEST NEW PACKAGING
RAW MATERIAL: PALMOR PULP
9
� MARKET APPROACH
• To supply selected specialty GREEN products
• Customers / Supporters
‐ Government & GLCs
‐ Banks
‐ Universities
‐ Large Corporations
� COOPERATION WITH CONVERTERS
• SPPT supplies the raw material
• End products manufactured for SPPT or the end
users
LOCAL MARKET EXPANSION
10
� OFFICE STATIONERY
• Support Government’s Green Initiatives
• SPPT to introduce specialty papers soon
• Products samples are now available
� SPECIALTY PAPERS / PRODUCTS
• Selected office stationery
‐ Elegance
‐ Corporate image
• Primary school book covers
LOCAL NICHE MARKET
– GREEN CONSUMER PRODUCTS
11
� CREAM COLORED PAPER
- Natural (without addition of dye)
- Soft color and elegance appearance
- Special character marks
- Marks can only be obtained with Palmor® pulp
- High end products category
SPECIALTY PAPER GRADE
12
� BEST EXAMPLE OF IMPLEMENTATION:
‐ No plastics day on Saturdays and Sundays
‐ Similar concept can be applied
� EDUCATION MINISTRY
‐ Primary schools exercise book cover
� KeTTHA & OTHER MINISTRIES
‐ Office stationery
• Paper bags • Certificate papers
• Envelopes • Business cards
• Specialty Cards
� IMPLEMENTATION ON SOME PRODUCTS
‐ Helps to sustain & grow the industry
GOVERNMENT SUPPORT
TO USE BIOMASS BASED PAPERS
13
1) AWARENESS & SUPPORT OF GREEN BIOMASS PULP
AND PAPER PRODUCTS
� LOCAL
‐ Price, price, price ….. and price ….
‐ Steady volume at 60 MT per month
� EXPORT
‐ Better selling price
‐ Effect of currency exchange?
‐ Volume increasing to > 300 MT per month
2) LOCAL MARKET
� Opted for niche consumer products
� Cooperate with converters & manufacturers
� Our journey has been a difficult one but is improving
� Needs support from Government and Corporations
SUMMARY
14
� MTDC
� SME BANK
� MARTRADE
� MIDA / MITI
� PIRSB – PERAK INDUSTRIAL RESOURCES SDN. BHD.
� BIOMASS.SP
� SMECORP
� FAMILY AND FRIENDS
APPRECIATION
15
QUOTE:
“Do not follow where the path may lead, go instead
where there is no path and leave a trail.”
- Wayne Lim, Publisher The SME Paper
MALAYSIA SME, JULY 2009