Why is Asia pulp and paper recommended by many
This paper industry is a collection of recycling and manufacturing industries that are located in Asia. Asia pulp and paper industry is composed of tree pulp, recycled paper, and processed materials including ground pulp, newsprint, printing papers and more. The company operates a number of mills around Asia. They also have facilities abroad in Adelaide Australia where they manufacture raw material for overseas use. Why is it recommended by many?
1. Their mills use latest technological advancements
They provide high quality raw materials. Their products are environmentally friendly as they use no chemicals in production. In addition, their mills are also equipped with state of the art machinery and automated systems that help in better management and result in high output per unit of raw material.
2. There is a very good coordination amongst the companies under this industry
The members have been working together even from before the formation of this Association (APPA) in 1998 when there was just one company, International Paper (IP). At present there are 33 members in APPA with a combined production of nearly 26 million tons annually and sales running into billions of dollars every year.
3. Technological advancements have greatly helped this industry
The mills in the region have enhanced productivity substantially over the years. The latest technology has been incorporated in their operations and this has helped them achieve better quality paper than their counterparts. This means that they also meet international standards which allows them to export their products worldwide.
4. Their relationship with the local community is great
The APPA members have always tried to work with the local communities and NGOs. Asia pulp and paper are also seen as a good corporate citizen, actively contributing to social welfare projects throughout the region through various charitable donations and sponsorships of sports events among other initiatives. They help with disaster relief efforts and provide employment opportunities for local people who otherwise would be out of work.
5. The scope for growth in the industry is unlimited
Their products are in demand across the globe and there is ample scope for the companies to expand their geographical reach by setting up new mills. There is also a huge market for their recycled products. The industry has been steadily growing over the years and this trend is expected to continue in future.
6. The industry has good future prospects
The region as a whole has been showing impressive rates of economic growth and this will ensure that there is a rising demand for pulp and paper products, both within and outside Asia. Exports are also likely to increase with growing economies like India and China turning into export oriented nations.
7. The industry is attractive for investors
There are a number of factors that make the industry an attractive investment. Asia pulp and paper include the availability of cheap capital, low operating costs and high margins. In addition, there is ample scope for growth in the region with growing economies and the demand for pulp and paper products projected to increase throughout Asia. Also, paper products are highly profitable and this means that APPA members have an excellent earning potential on their invested capital.