It’s been 18 months since Asia Pulp and Paper (APP) announced its Forest Conservation Policy, which included a commitment to zero deforestation. And its September update report carries with it some further positive news about the company’s long-term pulp supply chain — most notably with respect to the planned opening of a third paper mill in OKI district, in South Sumatra, Indonesia.
Concerns have surrounded the opening of the new plant, and whether existing plantation forests would prove to hold sufficient stock to meet the increased demand for pulpwood. Work done by third-party entities, TFT and Ata Marie, which conducted an independent ‘Growth and Yield’ study, has, according to the company, “confirmed that APP does have sufficient resources to meet the wood demands of the mills,” though “one minor gap” in the supply has been identified in 2020, which the company asserts will be addressed.
The gap identified in 2020 can easily be filled, according to APP, by increasing the productivity of plantation operations between now and then. APP’s update report states that the TFT/Ata Marie study identified a number of efficiency gains and management improvement practices that, if implemented, could substantially increase the wood yield from the existing land-base of its pulpwood suppliers.Click to continue reading »