12/30/2008 10h26

APP intends to strengthen presence in Brazil in 2009

Gazeta Mercantil – 12/30/2008

Asia Pulp & Paper (APP) intends to expand its presence in Brazil in 2009. Throughout this year, the Chinese company, considered one of the largest paper and pulp producers of the world, doubled the volume of paper put in the national market, going from 35 thousand tons registered in 2007 to 70 thousand tons. The company plans for the next years continue including the increase of the sales volumes for the market of traditional coated paper as well as in the segment of special and high technology products, such as recycled paper, paper for digital printing and some special packages. "Only in these segments we are able to be competitive in the Country, because of the reduction of the tax rate for books and magazines", affirmed the CEO of APP in Brazil, Geraldo Ferreira. The appreciation of the Dollar reduces the competitiveness even more, but in these special segments, 40% of the consumption is supplied by imports, according to the Officer, because there is no local production. "The potential is huge in these segments in which we started the work this year, with excellent acceptance", added the executive. The strengthening of the Dollar caused an increase of 20% in prices, going to R$ 4 per kilogram. But part of this increase is being determined by the fall in the prices of the sea freight, according to Ferreira. Ferreira affirmed there are exaggerations in the sector when they say there will be an invasion of Chinese paper in the Brazilian market. According to him, the Asians should continue making an effort to keep their positions in more developed markets, like Europe and North-America. APP, however, keeps its plans of being present in the big markets as well as in the emerging ones, like Brazil. Even facing the setting of the world financial crisis, Ferreira emphasizes that the plans for the Brazilian market for next year are kept. "Latin America, and mainly Brazil, continues being one of the main focus of growth of APP all over the world", he affirmed. In the Country, the Chinese company offers the lines of recycled paper Enova (coated paper), Exceedo (offset), Sinar Tech "bookpaper", the Nevia Digital line (couche), Excel Pro, offset for digital printing, besides solid card paper used in high quality packages.