Thailand’s Pulp & Paper Industryvppa.vn/wp-content/uploads/2019/11/10-TPPIA-Country...2019/11/10...
Transcript of Thailand’s Pulp & Paper Industryvppa.vn/wp-content/uploads/2019/11/10-TPPIA-Country...2019/11/10...
The Thai Pulp and Paper Industries Association
Thailand’s Pulp & Paper Industry
The 34th Federation of ASEAN Pulp and Paper Industry Conference
November 1, 2019
by Mr. Pornchai Vittayakoonsakulchai
President of TPPIA
Topic
- Economic Outlook
- Pulp and Paper Industry Outlook
- Challenges for Thai Pulp and Paper
Industry
Economic Growth - Tourism, Investment and Spending from both Government & Private Sectors
are key drivers of Thai economic growth in 2019.
Source: NESDB, EIC analysis based on data from CEIC, NESDB, BOT and MOC
4.0 3.0
0.1
2.9
-1.2
9.5
13.2
0.7
4.1 4.6
1.8 3.9 3.3
7.5
13.7
1.1 3.2 4.2
2.2 3.7 4.0
-1.2 -1.6
1.2
-5
0
5
10
15
20
GDP Private
Con.
Government
Con.
Private
Invest.
Government
Invest.
Export Import Inflation
%
2017 2018 2019F
Thailand GDP growth by components
Supporting Factors Risk Factors
Population in 2018 66.41 million
The Eastern Economic Corridor (EEC) - Government approved 5 large infrastructure projects in EEC area, worth
THB 695 billion in total, thus help boost both public and private investment.
Source: The Eastern Economic Corridor Office of Thailand
10 keys industries identified as new-growth engines and promoted in EEC area
The Next-Generation Automotive
Industry
The Intelligent Electronics
Industry
The Advance Agriculture and Biotechnology
The Food Processing
Industry
High Wealth and Medical Tourism
Industries
Digital Industry The Robotics Industry
Aviation and Logistics Industry
Comprehensive Healthcare
Industry
Biofuel and Biochemical
Industries
Topic
- Economic Outlook
- Pulp and Paper Industry Outlook
- Challenges for Thai Pulp and Paper
Industry
1,329 1,426 1,425
1,343 1,330
1,529 1,580 1,688 1,665 1,672
0
500
1,000
1,500
2,000
2015 2016 2017 2018 2019F
Capacity Consumption
Utilization 85% 82% 86% 95% 99%
Pulp Capacity & Consumption - Pulp in Thailand mainly derives from Eucalyptus
- Slow growth in pulp demand; less than +2% per annum
(‘000 Tons)
Source: The Thai Pulp and Paper Industries Association (TPPIA)
11,863 12,249 12,523 12,090 12,600
7,680 8,100 8,400 8,590 8,800
0
5,000
10,000
15,000
2015 2016 2017 2018 2019F
Supply Consumption
Export (million tons) 4.18 4.15 4.12 3.50 3.80
(‘000 Green Tons)
Eucalyptus Wood Supply & Consumption - Eucalyptus Wood Supply 12 million tons per year
- Consumption 9 million tons, with growth +2% per annum
Source: The Thai Pulp and Paper Industries Association (TPPIA)
5,749 5,783 5,903 5,784 5,816
4,296 4,286 4,676
4,447 4,524
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2015 2016 2017 2018 2019F
Capacity Consumption
Utilization 84% 86% 88% 88% 89%
Paper Capacity & Consumption - Capacity 5.8 million tons; Consumption 4.5 million tons
- Growth +3% per annum for packaging paper
(‘000 Tons)
Source: The Thai Pulp and Paper Industries Association (TPPIA)
Containerboard 62% Printing & Writing
Paper 20%
Paperboard 12%
Newsprint 3% Sanitary 3%
Paper Consumption by Category - Paper for industrial use accounted for 74% of total demand
- Trend of application for food container e.g. street food, food delivery
Paper consumption per capita in 2018 = 67 kg. Total consumption in 2018 = 4.4 million tons
Source: The Thai Pulp and Paper Industries Association (TPPIA)
3,415 3,500 3,641 3,557 3,583
2,589 2,662 2,747 2,761 2,844
0
1,000
2,000
3,000
4,000
2015 2016 2017 2018 2019F
Capacity ConsumptionContainerboard (‘000 ton)
1,551 1,468 1,437 1,410 1,411
924 875
1,156 914 896
0
500
1,000
1,500
2,000
2015 2016 2017 2018 2019F
Capacity ConsumptionPrinting & Writing (‘000 ton)
508 539 539 539 542 505 492 513 526 542
0
200
400
600
800
2015 2016 2017 2018 2019F
Capacity ConsumptionPaperboard (‘000 ton)
2,673 2,678 2,758 2,841 2,926
3,763 3,715
4,168 4,045 4,167
0
1,000
2,000
3,000
4,000
5,000
2015 2016 2017 2018 2019F
Domestic Collection Consumption
Recovery Rate 62% 62% 59% 64% 65%
Recovered Paper Consumption - Imported RCP represents 33% of the consumption (1.4 million tons)
- Consumption growth rate +3% per annum
(‘000 Tons)
Source: The Thai Pulp and Paper Industries Association (TPPIA)
Topic
- Economic Outlook
- Pulp and Paper Industry Outlook
- Challenges for Thai Pulp and Paper
Industry
Global Challenge - All industries move towards Sustainable Development Goals.
- Climate issue appears to be the most impactful SDG.
Source: WBCSD, Responsible Business Trends Report 2019
National Policies and Plans - Climate change mitigation has been incorporated into National
Development Plans.
(Industrial Process & Product Use)
Source: Office of Natural Resources and Environment Policy and Planning, Thailand
“THAILAND INTENDS TO REDUCE GREENHOUSE GAS EMISSIONS BY 20% FROM BAU (business-as-usual) LEVEL BY 2030”
Thailand's Nationally Determined Contribution Roadmap on Mitigation
Challenges to Industry - The industry will encounter more stringent regulations and measures
against global warming.
Development and certification of environmental products; environmental friendly labeling
Stringent supervision and law enforcement; more supervision on imports of recycled materials, increase efficiency of waste disposal and waste treatment
Economic mechanisms and social measures for pollution management system
CHALLENGES TO INDUSTRIES
Energy & Transport • Increase power generation
efficiency • Energy efficiency in
buildings/ households • Energy efficiency in
transport • Renewable energy
generation • Promote biofuels etc.
Waste • Waste reduction • Municipal wastewater
management • Industrial wastewater
management etc.
Industrial Process & Product Use
Action Plan for Roadmap on Mitigation
In Conclusion
• To stay competitive, Industry has to foresee the impacts from changes, be resilient and adaptive.
• Embracing circular economy concept into action across the industry’s value chain will contribute to a long term growth and sustainable development.
• Cooperation will be key to making the circular economy a reality.
Thank You