The Pulp & Paper Industry Strategy Group Issues Paper was developed by the Pulp and Paper Industry Strategy Group (PPISG) established by Carr in June, with the minister describing it as an “important first step in identifying opportunities for the industry to become more internationally competitive”.
“The industry has been up front about the challenges it faces and now needs to develop strategies to overcome them,” Carr (pictured) said in a statement.
Indeed, the report singles out research and development (R&D) and capital investment as areas of particular concern.
“[The industry’s] weaknesses lie in the need for more investment in world-class plant and equipment and for new, innovative production processes,” the report states. “Measures to promote investment, R&D and innovation on the basis of mutual obligation between governments and industry, may need to be considered.”
The report also covers the impact of digital media technologies on the demand for paper, as well as the challenges raised by climate change, environmental sustainability issues, and emerging economies such as China.
In a boost to the industry’s sustainability claims, the report says that “the Australian community needs to become more aware of the pulp and paper industry’s strong environmental credentials in terms of water reduction and use of biofuels”.
However, the report also forecast further economic hardship for the industry, acknowledging that “the challenges presented by increasing international and domestic competition and by the industry’s aging capital stock may result in mill closures and further industry rationalization”.
Amongst the technological challenges faced, the report mentioned the emergence of e-readers and the Espresso Book Machine (EBM) as worrisome for the industry. The report also touched on the controversy surrounding the Productivity Commission’s recommendation to repeal parallel import restrictions (PIRs) on books.
“Some participants in the pulp and paper industry are concerned that the parallel importation of books may lead to a reduction in the quantity of books being produced in Australia,” the report states.
A final report is expected to be delivered by the PPISG in November. The paper can be downloaded from the Department website.
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