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THE EMERGENCE OF PROJECTS WHERE NUMEROUS TMS ARE BEING ORDERED AT ONCE IS NOW ON A SCALE UNSEEN BEFORE Tissue machinery suppliers are broadening their product offering and focus areas to meet rapidly diversifying tissue markets. As the global consolidation rate among tissue paper producers has been declining, machine suppliers are facing a more diverse client base. Merger and acquisition activity has proven to be one way forward to meet the evolving demands. AFRY Management Consulting’s Pirkko Petäjä, Principal, and Hampus Mörner, Senior Consultant, report for TWM.
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Pirkko Petäjä Principal
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y the beginning of the millennium the top-10 tissue producers accounted for almost half of the world’s production footprint. In 2020, this share had dropped to less than 40% (although there are regional differences in trends), while the total capacity was strongly growing. New projects now span between small- and mid-sized to what can almost be considered as “mega projects”. The latter category is much attributed to the emergence of Asian operators that in recent years have earned their place in the top-10. The production capacity growth in the last ten years is mainly concentrated in Asia and led by China and Indonesia. On a company level, APP, Vinda (Essity Group),
Hengan and Lee & Man are in the top of new capacity added. APP alone is estimated to have grown its Asian production footprint by more than two million annual tonnes since 2010. Within this, a project like the OKI mill in Indonesia is to be found where in total six TMs of 60kt of production capacity each were ordered from Toscotec around 2018. During the same period, a similar project in terms of size was finalised by Valmet for Lee & Man at its Chongqing mill in China where four TMs of 55kt/a each were installed. With projects of this scale the complexity grows. As new opportunities for machine suppliers open up there are also risks to be considered and mitigated. For instance, the amount of resources
THE PRODUCTION CAPACITY GROWTH IN THE LAST TEN YEARS IS MAINLY CONCENTRATED IN ASIA AND LED BY CHINA AND INDONESIA. ON A COMPANY LEVEL, APP, VINDA (ESSITY GROUP), HENGAN AND LEE & MAN ARE IN THE TOP OF NEW CAPACITY ADDED. Figure 1. Global Tissue Production Footprint Distribution - Top 10 Producers vs. Others (% share) Hampus Mörner Senior Consultant
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Tissue World Magazine | July/August 2021
