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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

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1) INTRODUCTION

� PROCESS

� PRODUCTS

2) MARKET PROFILE

� MARKET FORCES

� EXPORT

� LOCAL

� LOCAL MARKET EXPANSION

3) SUMMARY

4) APPRECIATION

AGENDA

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PROCESS FROM EFB

TO PULP / PAPER SHEET

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ECO-CONSUMER PRODUCTS

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� 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

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�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

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� 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

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PRODUCT AWARD BY USA PRODUCE ASSOCIATION

- BEST NEW PACKAGING

RAW MATERIAL: PALMOR PULP

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� 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

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� 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

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� 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

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� 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

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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

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� MTDC

� SME BANK

� MARTRADE

� MIDA / MITI

� PIRSB – PERAK INDUSTRIAL RESOURCES SDN. BHD.

� BIOMASS.SP

� SMECORP

� FAMILY AND FRIENDS

APPRECIATION

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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