PRESS RELEASE 24 Oct 2017
How can pulp and paper companies thrive in a highly competitive market?
Pöyry PLC Press release 24 October 2017 at 3 pm (CEST)
The potential benefits of operational improvements on production, maintenance and supply chain can yield savings of up to 20-50EUR/t. It is the money that companies are leaving on the table by not being able to perform to their full potential with their current assets. The new Pöyry Point of View explains how this gap can be closed.
Increasing competition and declining profitability in the pulp and paper market are putting additional pressure on existing players in the mature markets. As there are now signs that the emerging markets are also maturing, the global pulp and paper industry has evolved into a highly competitive arena where producers have placed themselves in the lowest cost position possible while capturing market shares.
While companies cannot control market forces, improving operational efficiency is the lever that they can actively control. Instead of looking at new investments, more focus needs to be given to the operational efficiency of current assets. The issues are common in all geographies and phases of the investment cycle.
In a highly competitive market companies that maximise the value of their assets, regardless of their age, will achieve a competitive advantage. This can positively impact production volumes or raw materials and utilities consumption, which has direct effect on the profit equation under all market conditions.
Operations performance can be determined by the quality of assets and process, people and organisation, and management systems. Recognising this, Pöyry has developed a methodology that incorporates the best of different continuous improvement techniques and industry experts who investigate performance on the mill level.
“Our proven Execution Gap methodology is based on sound analytics and process insights into operations, supply chain and organisation,” explains Gabriel Sousa from Pöyry Management Consulting. “Qualifying and quantifying the Execution Gap of an operation is the difference between current and potential performance. Of the resulting improvement opportunity, roughly 55% can be attributed to increased production and 45% to variable cost savings. This hidden value can be the difference between survival and failure.”
Read more on the Pöyry Point of View Report, launched today at the ABTCP event in São Paulo, Brazil.
Principal, Operational Services, Management Consulting Business Group
Senior Principal, Operational Services, Management Consulting Business Group
Tel. +43 1 6411800
Director, Head of Operational Services, Management Consulting Business Group
Tel: +358 40 545 1514
Did you know? Our clients have averaged 6-10% reduction in operating costs in over 200 Operational Services projects with us.
Pöyry is an international consulting and engineering company. We deliver smart solutions across power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry's net sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq Helsinki (POY1V). Approximately 5500 experts. 40 countries. 130 offices.