PORTUGUESE PAPER INDUSTRY. Statistics Reports

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1 PORTUGUESE PAPER INDUSTRY Statistics Reports 26

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3 PORTUGUESE PAPER INDUSTRY Statistics Reports 26

4 PUBLISHING: CELPA Associação da Indústria Papeleira Rua Marquês Sá da Bandeira, Nº 74, 2º Lisboa Telefone: Fax: celpa@celpa.pt GRAPHIC DESIGN, PAGINATION AND GRAPHICS: Companhia do Texto PRINTING AND BINDING: Chameleon, Marketing and Print Services, Lda. Legal Deposit /4 ISSN: Press Run: 85 copies Lisboa, October 27 The Statistics Report 26 is printed in paper Inaset Plus Offset 1 g/m2, produced by Grupo Portucel Soporcel, firm certified by NP EN ISO 91/2 and NP EN ISO 141/1999

5 In this Report The CELPA Universe CELPA Members

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7 In this Report The edition of the Statistics Report of the Portuguese Paper Industry has been produced annually since the end of the 7s, by the Pulp and Wood Pannels Section of AIP, by ACEL and FAPEL and, recently, by CELPA. In the last years, as a consequence of the consolidation movement that has occurred and the legal framework of competition, it was necessary to reformulate some minor aspects of the Report and the respective historical series, in order to prevent the identification of behaviours of individual firms. Nevertheless, relative to previous years, this edition has a significant modification. This report is a joint edition of two associations, that can be seen as complementary, CELPA - Associação da Indústria Papeleira and RECIPAC - Associação Nacional de Recuperação e Reciclagem de Papel e Cartão. The compilation and harmonization of the statistical information of both entities allows a more global reading of the national circuit of production, use and recycling of paper products. In practical terms, it was just an additional effort of broadening the universe of firms that, at the level of CELPA and RECIPAC, answer the call for filling the annual questionnaires and respective validation processes of information. Following the common interest, we shall seek, in the future, to reinforce and improve the information related to this sector in order to describe as accurately as possible the functioning of this important industrial sector. To all who contributed and mobilized, making this report possible, I woluld like to convey, on behalf of the Boards of CELPA and RECIPAC, our most sincere gratitude. Luís Costa Leal General Director

8 The CELPA Universe Of the total sector of pulp, paper and board industries, the largest producers of wood pulp and paper operating in Portugal belong to CELPA. CELPA members represent 1% of the production of pulp for papermaking and about 9% of the production of paper. All together, in 26 our members consumed about 5.9 million cubic meters of wood and were also responsible for managing about 18 thousand hectares of forest, which makes them both the largest users of forestry products and the largest private forest owners in the country. Location of mills and characterization of the sector Portucel Viana, S.A. Portucel, S.A. (Cacia) Celbi, S.A. Soporcel, S.A. (Lavos) Celtejo (Rodão) Renova, S.A. Caima, Indústria de Celulose, S.A. Portucel, S.A. (Setúbal) Characterization of the Sector Caima Celbi Portucel Celtejo Portucel Viana Renova Soporcel Industrial Site Constância Leirosa Cacia Setúbal Vila Velha de Ródão Cacia (CPK) Deocriste Torres Novas (Fab. 1) Torres Novas (Fab. 2) Lavos Main Products Bleached sulphite eucalyptus pulp Bleached sulphite eucalyptus pulp Bleached sulphate eucalyptus pulp Uncoated printing and writing paper Unbleached sulphate eucalyptus pulp Unbleached sulphate pine pulp Kraft Sacks Unbleached sulphate eucalyptus and pine pulp Recovered Paper Pulp Kraftliner Paper Recovered Paper Pulp Paper for domestic and sanitary use Wrapping and packing paper Printing and writing paper Bleached sulphite eucalyptus pulp Uncoated printing and writing paper

9 CELPA members Aliança Florestal SA Grupo Portucel Soporcel Sociedade para o Desenvolvimento Agro-Florestal, S.A. Apartado 55 Mitrena Tel: (351) Fax: (351) info@alflorestal.pt Grupo PortucelSoporcel Empresa de Desenvolvimento Agro-Florestal, S.A. Apartado 55 - Mitrena SETÚBAL Tel: (351) Fax: (351) Celulose Beira Industrial (CELBI), S.A. Leirosa FIGUEIRA DA FOZ Tel: (351) Fax: (351) Grupo PortucelSoporcel Sociedade Portuguesa de Papel, S.A. Apartado 5 - Lavos FIGUEIRA DA FOZ Tel: (351) Fax: (351) Caima Indústria de Celulose, S.A. CONSTANCIA SUL 225-O58 CONSTANCIA Tel: (351) Fax: (351) caimasede@caimacel.com Empresa Produtora de Papéis Industriais, S.A. Apartado VIANA DO CASTELO Tel: (351) Fax: (351) portucel.viana@gescartao.pt Grupo Portucel Soporcel Empresa Produtora de Pasta e Papel, S.A. Apartado 55 - Mitrena SETÚBAL Tel: (351) Fax: (351) Fábrica do Papel do Almonda, S.A TORRES NOVAS Tel: (351) Fax: (351) info@renova.pt Sociedade Silvícola Caima, Lda CONSTÂNCIA Tel: (351) Fax: (351) silvicaima@mail.telepac.pt Empresa de Celulose do Tejo, S.A. 63 VILA VELHA DE RODAO Tel: (351) Fax: (351) info@celtejo.com

10 RECIPAC members AFCAL Associação dos Fabricantes de Embalagens de Cartão para Alimentos Líquidos Av. do Forte n º CARNAXIDE Tel: +(351) Fax: +(351) info.afcal@iol.pt ANAREPRE Associação Nacional dos Recuperadores de Produtos Recicláveis Rua da Junqueira, n.º 39, Edifício Rosa, 2º Piso Lisboa Tel: +(351) Fax: +(351) agomes@anarepre.pt ANIPC Associação Nacional dos Industriais de Papel e Cartão Rua 14, N.º Espinho Tel: +(351) Fax: +(351) anipc@iol.pt APIGRAF Associação Portuguesa das Indústrias Gráficas, de Comunicação Visual e Transformadoras do Papel Largo do Casal Vistoso, 2-D, Escritórios B-C-D Lisboa Tel: +(351) Fax: +(351) geral@apigraf.pt CELPA Associação da Indústria Papeleira Rua Marquês Sá da Bandeira, 74, 2º Lisboa Tel: +(351) Fax: +(351) celpa@celpa.pt 1

11 Contents 1. The Economic Framework of the Pulp and Paper Sector in Forest 2.1. Portuguese Forest 2.2. Fire Prevention 2.3. Sustainable Forest Management Certification 2.4. Forest Management of the CELPA members 3. The pulp industry 3.1. Raw materials 3.2. Production Paper Pulp Production Recovered Fibre Production 4. Paper Recovery 5. The Paper and Board Industry 5.1. Raw Materials 5.2. Production 6. Foreign Trade 6.1. Pulp Pulp Sales Pulp Imports 6.2. Recovered Paper 6.3. Paper and Board Paper and Board Sales Paper and Board Imports 7. Environmental and Energy Indicators 7.1. Water Consumption 7.2. Effluents 7.3. Gas Emissions 7.4. Solid Waste 7.5. Energy Consumption 7.6. Quality, Environmental Management, Laboratory and Security Certification 8. Social Indicators 8.1. Workforce Characterisation 8.2. Qualification and Training 8.3. Occupational Health Safety 8.4. Work Accidents 9. Financial Indicators 1. International Comparisona 1.1 International Market Indicators 1.2 The Pulp and Paper Sector 11. The Pulp, Paper and Board Industry 12. Other Statistical Data Forest 12.2 Production, Sales and Consumption Data 13. Glossary

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13 1.The Economic Framework of the Pulp and Paper Sector in 26 13

14 1.The Economic Framework of the Pulp and Paper Sector in 26 The Portuguese GDP growth has had a nonlinear behaviour in the last 5 years. After the recession felt in 23, in which the Portuguese domestic product decreased when compared with the previous year, the Portuguese economy has had low growth rates and an unstable behaviour. In 26 the Portuguese economy grew 1.6%, mainly due to a recovery in investment, and a growth in exports. It is interesting to note that both the private consumption and government spending declined substabtially in 26, consequence of an increase of the unemployment rate and a weak consumer confidence index. Hence, in 26, the Portuguese economy growth was mostly related to the exporting sectors and the investment made by the private sector on the national economy. GDP AND THE MAIN EXPENDITURE COMPONENTS (a) Real variation rate, in percentage Table 1.1 Weights GDP Private consumption Government spending Investment GFCF Stock variation (b) Internal demand Exports Imports Internal demand contribution to the GDP (b) Net external demand contribution to the GDP (b) Notes: (a) The values are estimates made by the Bank of Portugal using the National Accounting of INE. (b) Percentage contribution to the PIB variation rate Source: Bank of Portugal, Economic Bulletin, Spring 27 14

15 1.The Economic Framework of the Pulp and Paper Sector in 26 Figure:1.1 Following the trend of negative expectations that already existed in 25, in 26 the consumer continued to be more pessimist than the average European consumer. As can be seen in the figure, the Portuguese confidence level has been deviating from the corresponding European index. This fact can be worrying since this divergence has been occurring through the last 1 years. In the last years this pessimistic trend is associated to an increase of the unemployment rate of 5% in 22 to 7.7% in Jun-86 Jun-87 Consumer Confidence Index: European consumer vs. Portuguese consumer Jun-88 Jun-89 Jun-9 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Consumer Confidence Index (EU27 average) Consumer Confidence Index in Portugal Jun-98 Jun-99 Jun- Jun-1 Jun-2 Jun-3 Jun-4 Jun-5 Jun-6 Jun-7 Source: In what concerns the industry, although there are also distinctive expectations between the Portuguese and European industry sectors, there has been an improvement in the Portuguese Industry Confidence Index in 26. This trend can possibly express that industries will start increasing their future investments in the national economy, in the short run Jan-87 Jan-88 Industry Confidence Index: European industry vs. Portuguese industry Jan-89 Jan-9 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan- Industry Confidence Index (EU27 average) Industry Confidence Index in Portugal Jan-1 Jan-2 Jan-3 Jan-4 Figure:1.2 Jan-5 Jan-6 Jan-7 The fact that the industry confidence index has been improving in Portugal resulted in 1.7 growth of the industrial production index. Although it is still one of the lowest indices in Europe, it reveals a positive growth when compared with the values achieved in 25. Source: yoy % ch. Industrial Production last value: April 27 BE 2. DE 6.9 IE 9.8 EL.1 ES 4.4 FR.4 IT 1.6 LU - NL -2. AT - PT 1.7 SI 11.5 FI -.8 Figure: Source: 15

16 1.The Economic Framework of the Pulp and Paper Sector in 26 Figure:1.4 While on one side the Europeans consumer confidence index has been improving, in reality they still find more negative aspects than positive in the way they see economic growth in the future. This attitude is demonstrated by the continuous breaking of the European private consumption, that has been sharper in the second half of 26 reaching levels as lo as the ones hit in qoq % ch Private comsuption last value: 7Q Source: Figure:1.5 In 25 the oil price increase was of the order of 65%. In the first half of 26 the tendency continued reaching the price of 75 USD/barrel. Nevertheless 26 ended with a fall in oil prices bringing the barrel down to 55 USD Oil prices last value: June USD/barrel EUR/barrel Source: Figure:1.6 As a consequence of both the fall in oil prices and the continuous break in the European private consumption, the harmonized index of consumer prices decreased to values below 2% yoy % ch Core inflation and HICP last value: May 27 HICP Core inflation BE 1.6 DE 1. IE - EL 3.4 ES 2.5 FR 1.5 IT 1.9 LU 2.3 NL 1.2 AT 1.5 PT 2.1 SI FI Source: 16

17 1.The Economic Framework of the Pulp and Paper Sector in 26 In spite of the decrease in oil prices, the emerging economies have been having strong growths resulting in a considerable increase in the price index associated with the other commodities Index (199=1) Non-fuel Commodities last value: May 27 Figure: Source: The financial markets suffered also a correction in the middle of 26, associated to the fall in oil prices. However since the emerging economies are in clear growth there is a generalized increase of exports in the European economies, which boosts the expansion of stock markets Stock markets last value: June 27 Figure: Source: 17

18 1.The Economic Framework of the Pulp and Paper Sector in 26 Key Figures of the Portuguese Pulp and Paper Sector, 26 vs 25 Direct Employees Fixed Assets (EUR thousand) Sales (EUR thousand) Table variation 26/ % % % Source: CELPA Pulp (Un. 1 ton) Table variation 26/25 Total Production % Production for Sale % Production for papermaking % Sales % Domestic Sales % Exports % EU market excluding Portugal % Rest of the World % Imports % Source: CELPA 18

19 1.The Economic Framework of the Pulp and Paper Sector in 26 Paper (Un. 1 ton) Table variation 26/25 Total Production % Sales % Domestic Sales % Exports % EU market excluding Portugal % Rest of the World % Imports % Source: CELPA and RECIPAC Table Pulp Paper Number of Companies Number of Mills * 4* *Estimate Source: CELPA 19

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21 2.Forest 2.1. Portuguese Forest 2.2. Fire Prevention 2.3. Sustainable Forest Management Certification 2.4. Forest Management of the CELPA Members 21

22 2.Forest 2.1.Portuguese Forest According to the latest National Forest Inventory (IFN5), made by Direcção Geral dos Recursos Florestais (DGRF) between 25 and 26, the portuguese forest occupies 3.4 million hectares, i. e., 38.4% of the national territory and there was an increase of 63 thousand hectares relative to the IFN4. In fact, brush alone lost 156 thousand hectares and all the other soil uses increased their área between 1995/98 and 25/26. In what concerns the type of forest, there was a decrease of 64 thousand hectares in forest área and an increase of 134 thousand hectares in burnt forest áreas. Of the latter 55% were occupied by maritime pine and 3% with eucalyptus. Of the 41 thousand hectares identified as harvested areas, around 55% were occupied with eucalyptus and 37% with maritime pine As for the evolution of the occupied areas by dominant species between 1995/98 and 25/6 the most important fact is the reduction in 245 thousand hectares of maritime pine which, according to DGRF, ceases to be the species occupying the greater area in mainland Portugal, being overtaken by the cork oak that now occupies 737 thousand hectares. The holm oak and the eucalyptus see also their areas reduced in 73 and 25 thousand hectares, respectively. Finally, in what concerns the standing volume, the inventory reports that the maritime pine as fallen from 94. million cubic meters in 1995 to 63.9 presently, and the eucalyptus increased from 34.9 million cubic meters to Area by soil use (thousand hectares), in mainland Portugal Forest Brush Agriculture Social areas and other (includes fallow land) Source: IFN5, DGRF, 27 Area by type of forest (thousand hectares), in mainland Portugal Figure 2.1 Figure 2.2 Source: IFN5, DGRF, 27 Burnt area by species (thousand hectares), in mainland Portugal 1995/98 25/6 Inland Water 1995/98 25/6 Forest Burnt forest areas Harvested areas Other forested areas Figure 2.3 Other oaks ; 1,5 Chestnut tree;,5 Umbrella pine ;,3 Holm oak; 3,4 Other species; 8,4 Cork oak; 18,9 Martime pine; 116,4 Eucalyptus; 64 Source: IFN5, DGRF, 27 22

23 2.Forest Harvested area by species (thousand hectares), in mainland Portugal Figure 2.4 Figure 2.5 Forest area by dominant species in 25/26 Umbrella pine;,7 Other species; 1,8 Cork oak ;,6 Martime pine; 15,4 Eucalyptus; 22,8 NUT II regions Source: IFN5, DGRF, 27 Holm oak Eucalyptus Other species Maritime pine Cork oak Source: IFN5, DGRF, 27 Table 2.1 Areas and volumes of maritime pine and eucalyptus, in mainland Portugal Species Composition Areas thousand ha Mean volumes m3/ha Volumes Million ha 1995/98 25/6 1995/98 25/6 1995/98 25/6 Pure Maritime pine Mixed dominant Mixed dominated Total 1, Pure Eucalyptus Mixed dominant Mixed dominated Total Source: IFN5, DGRF, 27 23

24 2.Forest 2.2.Fire Prevention Burnt Areas The burnt areas vary each year, depending considerably on weather conditions. As in other years, there were several factors behind the initiation and spreading of fires and the áreas destroyed, including some human activities and natural phenomena. In 26, 39 thousand hectares of brush and 35 thousand hectares of forest were burnt, resulting in the third year with the lowest burnt área in the last 1 years. In average, in the last 1 years, 52.5% of the burnt área in mainland Portugal was occupied by brush. Burnt areas 23 Figure 2.6 Burnt areas 24 Source: CELPA Figure Source: DGRF

25 2.Forest Figure 2.8 According to provisional data from DGRF, of the 35 thousand hectares of burnt forest in 26, 27% were occupied by eucalyptus, 26% by maritime pine and 18% by mixed forests. The remaining area was mainly classified as undiscrimineted occupancy. Burnt areas 25 As it is shown in Figure 2.14, in spite of prevention and firefighting efforts the burnt areas belonging to CELPA members varied between a minimum of 155 hectares in 1997 and an abnormally high maximum of 33,728 hectares in 23. In 26 the burnt area under CELPA members management was of 4.2 thousand hectares. It was only in 23 and 25 that the annual fraction of burnt area belonging to CELPA members exceeded 2% of the total area, reaching 13% and 6%, respectively. In 26 the value was 2.3%. Source: DGRF Figure 2.9 Burnt areas 26 Burnt area in mainland Portugal (hectares) Figure Forest (ha) Brush (ha) Source: DGRF, Source: DGRF 25

26 2.Forest Burnt forest area in mainland Portugal by species, in 26 Figure 2.11 Undiscriminated 2,3% Martime pine 26,3% Other hardwoods,8% Mixed 18,6% Other softwoods 2,4% Cork oak 2,% Holm oak 2,1% Eucalyptus 27,4% Source: DGRF Burnt forest area in mainland Portugal by species, 21 a 26 (hectares) Figure Martime pine Eucalyptus Other species Undiscriminated Source: DGRF 26

27 2.Forest Burnt Areas by Species in relation to the Species Total Area in Mainland Portugal Figure % 1% 8% 6% 4% 2% % Martime pine Eucalyptus Other species Source: DGRF Figure 2.14 Burnt Areas Belonging to CELPA Members (hectares) Burnt Areas CELPA (ha) Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 Proportion of Burnt Areas Belonging to CELPA Members Figure % 12% 9% 6% 3% % Burnt Areas CELPA (%) Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 27

28 2.Forest Causes of Forest Fires In 26, the investigation of forest fires was carried out by SEPNA/GNR, which integrates in this service the elements of Corpo Nacional da Guarda Florestal of DGRF. In 26, what stands out is the high proportion of forest fires of undetermined origin, which is a sconsiderable increase when compared to 25. 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Forest Fires by Cause, 2 to 26 Figure Negligence Intentional Natural Undetermined Source: DGRF Fighting and Preventing Fires Table 2.2 Fighting and Preventing Fire: Summary, 22 to Average Number of occurrences Fires involving damage Fires involving danger Total fires foughtincêndios Private fires Total ocurrences Burnt area (hectares) Eucalyptus Pine Other species Other Total burnt area Action time (minutes) Take-off time Arrival Helicopter flying hours AFOCELCA Other instituitions Total flying hours , , , , , , ,78 1, , , , , , % 38.% 62.% 1.% % 5.9% 1.7% 6.1% 1.% % 3.7% 1.% Source: AFOCELCA 28

29 2.Forest In 22, CELPA s members set up a complementary group of companies called AFOCELCA to manage the fighting of forest fires threatening their property. Indeed, through CELPA, these companies have been pioneers in promoting actions in fighting forest fires at a national level for years. Since 1987, in addition to their own resources, CELPA s members have hired and coordinated land and air resources to fight the fires threatening their forests, acting in their own areas or those of other owners, in close cooperation with the National Fire Fighting Service Hours Flown per Campaign by Helicopters Hired by CELPA Members Figure In the last 1 years, helicopters working for CELPA companies have flown an average of 32 hours per campaign. The maximum was registered in 25, with 47 flying hours. To make fire fighting more efficient, the member companies conducted a survey of all water points on their property and their respective classification in terms of accessibility. In 26, fire prevention measures consisted essentially on clearing vegetation, cleaning paths and fire breaks and maintaining the road and division network. These measures were taken over an area of 17, hectares, which is about 1% of the forest area of the member companies Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 Figure 2.18 Water (in m 3 ) Used per Campaign by Helicopters Hired by CELPA Members Preventing and fighting forest fires requires a significant financial outlay. In 26, it involved EUR 1.5 million to hire and coordinate land and air fire-fighting resources, EUR 1.9 million for preventive forestry and EUR 88, for maintaining the road and division network Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 29

30 2.Forest 2.3. Sustainable Forest Management Certification Growth of certification in the world Table 2.3 FSC PEFC Other (a) Total Certified forest area by system and by region in December 26 (million hectares) North America Central and South America Asia Europe Oceania Africa Russia Total (a) Other in North America stands for American Tree Farm System, in Asia for Malaysian Timber Certification Council and in Africa for areas in Gabon recognized by the system Dutch Keurhout Source: CEPI ( The certification of forest management is a voluntary instrument that allows the improvement of the quality of forest management and demonstrates that its implementation is done in a responsible way taking into account the economic, social and environmental aspects. This concern includes also the natural resources with which the forest interacts, as well as the people that are depend on it and it as acquired an international status since the Ministerial Conference on the Protection of Forests in Europe in Helsinki (1993) and the United Nations Conference on Environment and Development in Rio de Janeiro (1992). In December 26, 295 million hectares of forest had been certified, which is around 6.2% of the world s total forest and represents an increase of about 5 million hectares compared to Figure 2.19 Growth of Forest Areas Certified by the Main Systems Worldwide (million de hectares), 1996 to December FSC PEFC-SFI PEFC-CSA PEFC-OTHER MTCC Source: CEPI ( In 26, the area of certified forest increased worldwide and the trend of exponential growth from 2 onwards continued. According to CEPI, in July 25, the area of certified forest in the northern hemisphere accounted for 92% of the total certified worldwide, with around 56% in North America and 3% in Europe. At the end of 26, the PEFC (Program for the Endorsement of Forest Certification Schemes) was the system with the largest area of certified forest that amounted to about 194 million hectares mainly in North America and Europe. The FSC (Forest Stewardship Council) represented around 84 million hectares of certified forest in different parts of the world. 3

31 2.Forest The Portuguese forest certification system CELPA members, being responsible wood-based manufacturers, recognize the great importance of Sustainable Management of the country s forest resources and are actively involved since the 9 s in establishing the requirements for a sustainable forest management, in implementing forest certification schemes and in communicating wood as a raw material of excellence. CELPA is a founding member of the Concelho da Fileira Florestal Portuguesa, the entity responsible for the creation of the Portuguese Standard 446, Sistemas de Gestão Florestal Sustentável Aplicação dos Critérios e Indicadores. This organism was also responsible for the development of the Código de Boas Práticas para a Gestão Florestal Sustentável, as a support in the implementation of NP446. In 24, the conformity of the sustainable forest management certification system (PEFC Portugal) was reviewed using the PEFC Council s mutual system recognition criteria. In December the system was formally recognized and therefore, can now be used by Portuguese forest owners. Nowadays the Portucel Soporcel group is in the process of certification by FSC, Celbi is doubly certified by FSC and PEFC and Silvicaima is certified by FSC. 31

32 2.Forest 2.4. Forest Management of the CELPA members Forested Area Species Eucayptus Maritime pine Cork Oak Other species Other 26users Occupation of CELPA Members Areas (ha) Own Areas 188,895 1,412 11,7 8,611 37, ,557 11,826 1,641 1,122 37,37 83,93 4,19 4,689 5,451 14, Leased Areas 77,933 2,348 2,225 4,81 9,758 Own Areas 88,765 3,755 5,48 5,591 15, Leased Areas 67,27 1,71 1,854 3,912 8,368 Own Areas 86,75 3,796 4,992 1,383 1, Table 2.4 Leased Areas 65,787 1,74 1,75 4,42 7,864 Source: CELPA CELPA members are responsible for the direct management of about 198 thousand hectares, on their own and leased property, representing 2.2% of the country s area. Of these, close to 18 thousand hectares are occupied by forest, which is around 5.3% of the Portuguese forest. Area Managed by the Paper Industry Figure 2.2 There was a reduction of 3,4 hectares of forest managed by CELPA companies from 25 to 26. The changes in the forest area belonging to CELPA members is the result not only of changes in the total area of the managed land (sales of property, cessation and signing of leases) but also of changes in the type of land occupation in the existing areas. The paper industry s interest in the certification of forest management is related to the promotion of sustainable forest management in Portugal and with access to markets that require products from certified forests. In 26, the companies continued their internal adaptation so that they could include the Pan-European Criteria for Sustainable Forest Management and the International FSC Principles so that they can soon obtain PEFC and/or FSC certification. At the end of 26 about 25% of the member s area was certified by the PEFC system and 37% by the FSC system. Source: CELPA 32

33 2.Forest Areas Planted by CELPA Members Table Forest Management and Harvesting Planting Species 23 Area (ha) Through best management practices, CELPA s companies endeavour to optimize the production potential of the stand and, at the same time, minimize negative environmental impacts. Using the best techniques and appropriate intervention they aim to create the best conditions for the forests, most of which are of eucalyptus, to be able to develop and achieve their full potential. Their concerns begin with the preparation of the land. This is usually done along the contour lines, avoiding the erosion of the soil surface and the destruction of indigenous vegetation. The trend in recent years has been to reduce the mobilization of the soil, reducing both the intensity of intervention and the extent of the area worked on. When establishing new areas, they have paid particular attention to rationalizing the use of fertilizer (choice of fertilizer and forms of application), to maintaining sensitive areas by establishing protective strips and to managing waste in the field, such as oils, packages, containers and other waste. In 26, CELPA members planted 3751 hectares, most of which were re-plantations of eucalyptus. Just over 18 thousand hectares, or about 1% of the forested area, were fertilized in 26. Afforestation (new areas) Reforestation Fertilization Fertilization when planting Maintenance fertilization Total Eucalyptus Maritime pine Cork oak Other species Eucalyptus Maritime pine Cork oak Other species Areas Fertilized by CELPA Members 23 1,416 16,524 19, , Area (ha) Table ,692 16,558 21, , ,777 4,574 1, , Types of Fertilizers used by CELPA Members 357 3, Source: CELPA 3,52 14,596 18,98 Source: CELPA Table 2.7 Most of the fertilization is for maintenance purposes and the fertilizers most used are the ternary compounds (NPK) and compounds containing boron. Type of Fertilizer used (%) NPK Slow release Compounds with boron Others % 8% 31% 21% 38% 8% 33% 21% 43% 5% 34% 19% Source: CELPA Target Area for the sprout Selection by CELPA Members 23 Area (ha) Table Sprout selection 11,48 13,143 1,375 9,47 Source: CELPA 33

34 2.Forest The sprout selection is the main maintenance operation and is normally carried out two years after felling, and it consists in selecting the best one to three logs for each tree harvested. In 26, selection was carried out on 9,5 hectares. Although the eucalyptus is the main species grown by CELPA members, they also own vast areas of other species of trees, including maritime pine and cork oak. These areas are equally managed for the production of other wood products, pine wood and non-wood products such as cork, game reserves and winemaking. For these areas there is also specific management of fire risk. In 25 there was an investment of 4 thousand euros in species other than eucalyptus. All the forestry work was carried out by contractors, although it was planned and supervised by experts from the companies. In their forestry activities, the companies endeavour to prevent negative impacts in terms of erosion, water quality and the landscape. In 26, 1.6 million m3 ob were felled on 13,12 hectares (121 m3/ha) of the areas managed by CELPA members. Felled area (ha) Felled volume (m 3 cc) Manual cut Mechanical cut Area and Volume of Eucalyptus Harvested by CELPA Members 22 12,838 Table ,16 18,759 12,348 1,393,775 1,541, 1,368,459 1,486, 1,591,563 Type od cut of Eucalyptus Logs Harvested by CELPA Members 22 13% 87% 13,12 Source: CELPA Table % 92% 8% 92% 16% 84% 4% 96% Source: CELPA About 96% of the work was done by mechanical harvesters (machines that fell, debark and trim the wood) while the rest was done manually with chainsaws. Almost all the forestry work was done by service providers. In 26, 83% of the transport of eucalyptus logs from the forests to the pulp mills was done by road, while the rest were transported by rail. Rail Transport of Eucalyptus Logs from the Forests to the Pulp Mills Table % 2% 7% 17% In what concerns the harvesting of other tree species, it should be noted that the members extracted more than 1,65 tonnes of cork from their managed areas. Road 86% 8% 93% 83% Source: CELPA 34

35 2.Forest Plant Production The production of high-quality trees of different species, for the afforestation of their own areas and for sale to outside buyers, is the main purpose of the five nurseries belonging to the CELPA members. In 26 these nurseries produced close to 14.7 million plants. Covered Uncovered Area Occupied by CELPA Members Nurseries in 26 (m 2 ) m 2 47,55 129,55 Table 2.12 Source: CELPA When comparing with the figures of 25, there was an increase in eucalyptus production for internal use and for sales to third parties of 38% and 24%, respectively. In what concerns other species, there was also an increase in the production for internal use and for sales to third parties of 826% and 49%, respectively. The Forestry Department has delegated powers to these companies nurseries to certify the quality of their own trees. Million plants Production at CELPA members nurseries, 22 to 26 Figure 2.21 Own use Sale Own use Sale Own use Sale Own use Sale Own use Sale Euclyptus Maritime pine Cork oak Other species Source: CELPA 35

36 2.Forest 2.5. Research and Development CELPA s members invested around 2.7 million euros in their research and development programs in 25. The main goal of these programs is to promote sustainable forest management by developing techniques to maximize the productivity of stands, protection against pests and disease, the quality of the wood for paper pulp and the efficiency of forestry and transport operations, thus reducing production costs and environmental impacts. Therefore, in 26 the member companies research programs involved fertilization and nutrition tests, fight against Gonipterus scutellatus and Mycosphaerela, genetic improvement and diversity of the eucalyptus, coppice silviculture and, finally, bioenergetic cultures. 36

37 2.Forest 2.6. Professional training and support to private forests The companies provide training and awareness-raising activities for their employees with operational responsibilities and appropriate training plans are established every year for their specific needs. These courses are not limited to their own staff and are available to all service providers, wood suppliers and specialists from forestry associations. In 26, CELPA s members continued to organize training courses and technical, environmental and security instruction mainly to its internal collaborators, but also to service providers and wood suppliers. In addition, the member companies have developed a number of support programs for forest producers and other agents aimed at sustainable forest management in order to help them find solutions in the field to the problems that they have to face in their activities. The idea is to help directly and indirectly to strengthen forestry associations and, in general, to contribute to a more rational use of the available resources in forestry. 37

38 38

39 3.The pulp industry 3.1. Raw materials 3.2. Production Paper Pulp Production Recovered Fibre Production 39

40 3.The pulp industry 3.1. Raw materials In consonance with the previous years, the Portuguese forests continue to be the main source of raw materials for the pulp and paper production. In 26, around 99% of the purchased wood came from Portuguese eucalyptus and pine forests, and only sporadically ther were imports of eucalyptus wood. Table 3.1 Purchased Wood by Type and Origin, 1997 to 26 (Un. 1 m 3 eq. debarked) Eucalyptus Pine Type Wood chips Logs with bark Logs without bark Total Eucalyptus Wood chips Logs with bark Logs without bark Total Pine Total wood Origin 1997 Other portuguese suppliers, Own forest Import Other portuguese suppliers Own forest Import Other portuguese suppliers Import Other portuguese suppliers Own forest Import Other portuguese suppliers Import Other portuguese suppliers 775,9 6, , 431, 882,8 828, ,9 229,3 696, 1, 1,6 47, 89,3 176, ,1 6.88, , 925, 4, ,4 34,3 973,4 827, ,4 211,5 685,1, 12,4 485,1 54,6 111,5 1.65, ,6, 777,5, ,9 376,9 595,2 921, ,6 156,4 77,, 37,9 526,5 62,1 89, , ,1, 469,, 2.23,7 46,7 45, ,8 4.67,1 8,7 661,4, 158, 288,4, 67, , ,8, 574,9 53, ,9 455,1 32,8 1.21, , 1,1 654,3, 416,2 49,1, 13,5 1.62, ,2 22, 71,7, 1.869,6 611, 21,4 1.55, ,6, 76,4, 58,1 454,5 73,4 82, 1.374, ,9 23,6 624,1, 1.815,3 533,5, 1.648, ,6 6,2 574,5, 69,3 378,1 4,3 7,1 1.12, ,1 24,5 496,4, 2.43,1 672,3, 1.73,8 5.33,1, 578,7, 16,7 378,, 85, 1.58, ,5 25,4 545,1, 2.134,3 577,3,1 1.48, ,8 21,9 69,1, 1,1 36,4, 114, ,7 5.88,5 26,4 623,9, 1.962, 536,7 45,7 1.64,6 4.89,1, 78,4,, 338,6, 45,6 1.92,6 5.91,7 CELPA Universe 4

41 3.The pulp industry From the total purchased wood less than 1% was imported. The imports were restricted to eucalyptus (and it represented around 1% of the total eucalyptus wood acquired in 26). 3% Wood Imports, 1997 to 26 Eucalyptus Pine Figure % 2% 15% 1% 5% % CELPA Universe In 26, the wood purchasements were stable when compared to 25. There was a slight increase (less than 1%) in both eucalyptus and pine wood. The supply orginated from the industry managed areas had a behaviour similar to the market, with an increase of 3.5% Acquisition of Wood by Origin, 1997 to 26 (Un. 1 m 3 ) eq. debarked Own forests Imports Domestic suppliers Figure CELPA Universe 41

42 3.The pulp industry Wood Eucalyptus Pine Total Acquisition, Consumption and Stock of Wood, 1997 a 26 (Un. 1 m3 eq. debarked) Origin Acquisition Consumption Stock Acquisition Consumption Stock Acquisition Consumption Stock Table CELPA Universe 42

43 3.The pulp industry In 26 there was a sustainment of the trend already hinted in 25 of reduction od wood stocks. For both woods, eucalyptus and pine, the 26 stock was reduced in about 59% relative to volume in stock in 25. As for the total consumptions there was an increase in wood consumption of eucalyptus and pine resulting from an increase in pulp production (both increases were around 4%). For the eucalyptus the consumption was 9% higher than the acquisition causing the reduction of the final stock of this wood to about 1/3 of the existing in 25. In the case of the pine wood, there was a rise of 1% in consumption that caused an increase of 18% in the production of pulp from this wood. In 26 there was a decrease in acquisitions relative to 25. The pine wood stocke were 39% lower, at the end of 26, than the corresponding stocks of 25. Acquisition, Consumption and Stock of Eucalyptus Wood, 1997 to 26 (Un. 1 m3 eq. debarked) Figure 3.3 CELPA Universe Figure 3.4 Acquisition, Consumption and Stock of Pine Wood, 1997 to 26 (Un. 1 m 3 eq. debarked) Acquisition Consumption Stock Acquisition Consumption Stock CELPA Universe 43

44 3.The pulp industry 3.2.Production Paper Pulp Production In 26 there was a rise of 4% in the production of virgin pulp from eucalyptus and pine. In the case of virgin pulp from eucalyptus the increase in 26 was of 2%, as for the case of pine pulp the production raised 18% when compared with 25. The component of production destined for sale had a small rise (2%) and the component for papermaking, i.e., the pulp used in paper production in the same mill rose 6%. Pulp production, 26 (Un. 1 ton) Total Pulp Production Pulp for Sale 26 Pulp for Papermaking Total Prodution Table Total Prodution Source: CELPA Figure 3.5 Pulp Production, 1997 to 26 (Un. 1 ton) However, the behaviour of eucalyptus and pine pulps were relatively different. 25 Pulp for Sale Pulp for Papermaking CELPA Universe For the pine pulp the 18% rise in production explains the increases of 26% in the volume for sale and 14% for papermaking. Pulp for Papermaking, 1997 to 26 Figure 3.6 In the case of eucalyptus pulp the production increase caused a larger increase (1%) in the volumes of pulp for paper making, than the increase in the volumes of pulp for sale that stood at 2%. Summarizing, the increase of pine pulp was canalized to sales while the eucalyptus pulp was used in papermaking. 1% 8% 6% 4% 2% Pine pulp Eucalyptus pulp % CELPA Universe 44

45 3.The pulp industry Recovered Fibre Production The production of pulp from recovered paper in 26 had an increase of around 21%. The production of de-inked pulp rose 15% and the production of not de-inked pulp rose 21%. Table 3.4 Production of Recovered Pulp and Paper, (Un.1 Ton) De-inked Not de-inked Total For Papermaking For Sale Total Total Source: CELPA and RECIPAC Figure 3.7 Production of Recovered Pulp and Paper (Un. 1 ton) 35 3 Destinadas Não Destinadas Source: CELPA and RECIPAC The data relative to 26 was obtained through direct surveys to the producers carried out by CELPA and RECIPAC. The data from previous years was revised in order to harmonize it with the available information in some products, for which the base for estimation was substantially improved. 45

46 46

47 4.Paper Recovery 47

48 4.Paper Recovery 4. Paper Recovery The scheme of Figure 4.1 describes in a genenal manner the path of the paper/board waste through their life cycle. Figure 4.1 Recovered Paper and Board Life Cycle Consumption and Separation Collection and Recovery Contaminant Removal Commercial Sorting Paper/Board Products Transformation Recycling The paper/board waste can be classified in two categories according to its origin. The paper/board waste can be Urban (with household origin) or Extra-Urban (with origin in industry, commerce and services). In what concerns the paper waste of the urban flux, after its separation and disposing by the consumer, it is collected by the Municipalities and the Collection Operators. The contaminant removal is performed by the sorting operators of the Multimunicipal and Intermunicipal Systems, while the commercial sorting is performed by the Recovered Paper Collectors and Merchants. As for the waste generated by the extra-urban flux, after its usage it is collected by the Collectors (Private Operators of Waste Management), which in their facilities perform the contaminant removal and the respective commercial sorting. The paper industry, due to the standard practice of integration of complementary economic activities, encompasses two different entities: Collectors and Recyclers. A Collector of paper and board is an eonomic operator that buys waste and performs the sorting operation and the classification by paper grades. This separation is called Commercial Sorting, and it is executed based on the European Standard EN 643:21 of July 22 European List of Standard Grades of Recovered Paper and Board. 48

49 4.Paper Recovery The compliance of EN 643:21 constitutes the minimum acceptable level required so that the Paper industry can use the paper and board waste, recycling it. The Standard EN 643:21 classifies Recovered Paper in 57 categories, included in 5 groups: Group 1: Current Grades (includes 11 categories); Group 2: Medium Grades (includes 12 categories); Group 3: High Grades (includes 19 categories); Group 4: Kraft Grades (includes 8 categories); Group 5: Special Grades (includes 7 categories). In this way, the Collector acquires a final product that is generally desicnated by secondary raw material, that ends up being transformed by the Recyclers. It is therefore a commercial activity that, in all its operational process, does not introduce any intrinsic change to the waste, which is the minimal condition to be treated as an industrial activity. The Collectors typically have their own places for the handling of paper and board waste, as weel as the necessary means for sorting and baling. They have also storage rooms or parks to keep the bales while they are waiting to be put in the market for future recycling. On the other hand, in the paper industry a Recycler is a manufacturer that acquires and uses the secondary raw materials, operates on them through transformation with the intent of obtaining a final product that is launched in the market. It is an industrial activity different from the activity of the Collector that is characteristically comercial. The data presented in this chapter was obtained in the begin of 27 by a survey performed by RECIPAC in collabaration with other entities, namely ANIPC Associação Nacional dos Industriais do Papel e Cartão (National Association of Paper Industries). The results obtained in this exercise, that naturally do not cover all the universe of oprators in the area of paper recovery and recycling, allow us to represent accurately this important activity. The experience gained from the survey and the operators willingness to fill the questionnaires and share the data enable us to envisage with optimism the possibility of progressively improving, in future editions, the quantity and quality of the information to query. 49

50 4.Paper Recovery Table 4.1 In order to allow the assessment of the evolution of some recovery and recovered paper consumption indicators it became necessary to harmonize some information of previous years with the one from 26. Paper and Board Recovery in 26 (Un.1 ton) Total Collectors 694 Recyclers 1 Energy recovery 4 Total 744 Source: RECIPAC Table 4.2 Since the directive 24/12/CE of Feruary 11 and its transposition to Portuguese domestic law through the Decree n. 92/26 of May 25 took effect, there has been a rise in the quantity of package waste of recovered paper in Portugal. Acquisitions and Sales of Recovered Paper and Board by the Collectors in 26 (Un.1 ton) Acquisitions From the collection systems Imports Here is presented data from 26 refering to paper recovery by destination obtained by direct survey of the operators. Of the total paper collected for recovery, 93% is sorted and baled by the Collectors and that only 1% is directly acquired by the Recyclers. Note that 4% of the total recovered paper and board was used in energy recovery. Sales From recyclers EU exports Outside EU exports Source: RECIPAC The total recovered paper and board acquired by the Collectors is mainly used in domestic recycling. However, in 26, around 43% of the traded quantities were directed to the exports. Total Acquisitions of Recovered Paper and Board by the Recyclers in 26 (Un.1 ton) Collection systems 1 Collectors 398 Imports 15 Table 4.3 Total 423 Source: RECIPAC 5

51 4.Paper Recovery The consumption of recovered paper since 24 has a positive trend (the break in 22 resulted form the closedown of a recycler with a significant dimension). Of the total consumption of recovered paper note that 66% belong to the category other types of paper. Table 4.4 Consumption of Recovered Paper, 22 to 26 (Un.1 ton) Designation 22(*) 23(*) 24(*) 25(*) 26 26/5 Unsorted 13 (4%) 13 (4%) 13 (4%) 13 (4%) 13 (4%) Paper for Corrugated Board 18 (3%) 98 (32%) 96 (32%) 18 (33%) 121 (34%) Paper for De-inking 5 (14%) 5 (16%) 5 (17%) 5 (15%) 5 (14%) All Other Types of Recovered Papers 221 (6%) 169 (55%) 162 (54%) 168 (51%) 173 (48%) Total 366 (1%) 31 (1%) 31 (1%) 328 (1%) 357 (1%) (*) Data estimated for all operators inquired in 26 [%] 13 [12%] [%] 5 [3%] 29 [9%] Source: CELPA and RECIPAC 51

52 4.Paper Recovery Being aware of the possible variation of the data from different information sources there was, in 26, a significative increase in apparent paper and board recovery (25%) and, particularly, in its package component. In this way, there is also a positive evolution in the indicators reflecting the paper recovery and recycling activity. Table 4.5 Main Indicators of Recovered Paper and Board (Un.1 ton) Designation 22(*) 23(*) 24(*) 25(*) 26 Recovery Rate (b/d) Utiliation Rate (i/a) Recycling Rate (i/b) Package Recycling Rate (f/c) Package Recycling Rate (e/c) Paper and Board Production (a) Paper and Board Apparent Consumption (b) Portuguese Packaging placed in the Market (c) Paper and Board Apparent Recovery (d) Waste Recovery of Paper and Board Packaging (e) Sent for Recycling (f) Sent for Energy Recovery (g) Recovery of Other Paper and Board Waste (h) Recovered Paper and Board Apparent Consumption (i) 49,% 24,5% 37,9% 51,1% 57,2% ,9% 2,9% 31,2% 52,8% 55,5% ,5% 18,3% 24,9% 54,5% 62,1% ,8% 2,9% 25,2% 59,8% 69,1% ,8% 21,7% 27,3% 8,2% 87,5% (*) Estimated data for the universe of inquired operators in 26 (a) Total Portuguese production of paper and board (b) Paper and board apparent consumption = production + imports exports (c) Packaging made in Portugal placed in the market. NOTE: excludes packages from imported goods (packaging containing products) (d) Total recovered paper and board in Portugal = RPB consumption + RPB exports RPB imports = (e) + (h) (e) Proportion of recovered paper and board from packaging (f) Recovered paper and board packaging sent for recycling (g) Recovered paper and board packaging used for energy recovery (h) Proportion of recovered paper and board from sources other than packaging (i)total consumption of recovered paper and board in Portugal reported by the inquired operators 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Main Indicators of Recovered Paper and Board in Portugal Taxa de Valorização de Embalagens (e/c) Package Recycling Rate (f/c) Recovery Rate (b/d) Recycling Rate (i/b) Utiliation Rate (i/a) Source: CELPA and RECIPAC 22(*) 23(*) 24(*) 25(*) 26 Figure 4.2 Source: CELPA and RECIPAC 52

53 4.Paper Recovery Nevertheless, there are package volumes for which there is no effective accounting system. The imports of consumption products, with the respective packages, generate a waste volume of packaging that enters circulation and is finally captured in the process of recovery and recycling. Therefore, we present an estimation process, developed by RECIPAC, for the computation of the total volume of packages in Portugal for 25 and 26. Using mean indicators to gauge the proportion of non-recoverable paper and board and the proportion of packaging in the urban solid waste deposited in landfills, we estimate that about 8 thousand tones are the net external trade of packages containing products. This computation allows one to estimate the real quantity of packages that, annually, circulates in the Portuguese market. Computation of the volume of packages in Portugal (Un. 1 ton) 25 Table Apparent consumption of paper and board in packages and otherwise Paper for packaging (Portuguese production) Non-packaging paper and board Non-recoverable non-packaging paper and board (19%) Useful non-packaging paper and board Total paper and board waste that would go landfills Total paper and board Paper and board deposited in landfills (22.5% of Urban Solid Waste) Total recovery of paper in 25 (did not go to landfills) Selective recovery Estimation of the net external trade of packages containing products (total waste that would go to a landfill paper and board) Packages circulating in the Portuguese market a) b) a) and b) Estimated values for the quantity of paper/board packages that entered the Portuguese market in the respective years. This estimation was made considering net filled packages, i.e., packaging in imported minus exported goods. Source: RECIPAC 53

54 54

55 5.The Paper and Board Industry 5.1. Raw Materials 5.2. Production 55

56 5.The Paper and Board Industry 5.1.Raw Materials The manufacture of paper and Board in Portugal is based on virgin eucalyptus and pine fibre pulp and on recovered fibre. Eucalyptus virgin fibre pulp is the main raw material. Nevertheless, the importance of virgin pine fibre pulp and recovered fibre as raw materials has been steadily increasing. Total Pulp Consumption, 26 (Un. 1 ton) Imported Pulp 53 Pulp for Papermaking 915 Domestic Sales 16 Consumption Table 5.1 Consumption Source: CELPA Consumption=Imported Pulp + Pulp for Papermaking + Domestic Sales The total pulp consumption increased 7% relative to the previous year. This rise was due mainly to an increase in consumption of pulp for papermaking (6%) and in the volume of imported pulp (26%). Hence, in 26 the quantity of pulp used by the paper industry with imported origin was at a similiar level of 24. However the data supplied by National Institute of Statistics is still provisional and are subject to future revision Pulp Consumption by Origin, 1997 to 26 (Un. 1 ton) Pulp for Papermaking Domestic Sales Imported Pulp Figure CELPA Universe Production Paper and board production, in the last three years, as shown some stability in contrast with the average 5% growth a year that had been characteristical previously. Production in 26 presented a slight growth relative to 25, even though it is still below the figure of 24. The total pape rand board production in 26 was 1,643 thousand tonnes. This rise was caused by increases in production of all types of paper excluding the ones with domestic and sanitary use which decreased 3% in produced volume Evolution of Paper Production by Type, 22 to 26 (Un. 1 ton) Other paper Paper and board for packaging Corrugated board covering Domestic and sanitary use paper Paper for printing Figure Source: CELPA and RECIPAC

57 5.The Paper and Board Industry Paper and board for graphical uses Paper for domestic and sanitary use Covers of corrugated board Paper and board for packaging Paper and board for graphical uses Paper for domestic and sanitary use Case Materials Wrappings < 15 gr Cartonboard Evolution of Paper Production by Type, 22 to 26 (Un. 1 ton) Uncoated paper without mechanical pulp Coated paper without mechanical pulp Total Total Kraftliner Semi-chemical fluting Testliner and others Total Kraft sacks Other kraft paper Sulphite paper for packaging Greaseproof and grassline papers Other wrappings Total Multiplex and other boards % % % 86 6% 27 18% % 23 2% 292 2% 57 4% 18 1% 15 1% 2 % 8 1% 1 7% 57 4% % % 97 65% 81 5% % % % % 52 4% 17 1% 16 1% 1 % 9 1% 96 6% 42 3% % % % 9 5% % % 28 2% % 6 4% 16 1% 15 1% 1 % 7 % 1 6% 43 3% % % % 77 5% % % 19 1% % 57 4% 14 1% 11 1% 1 % 8 % 91 6% 43 3% % % % 75 5% % 15 % 51 3% % 64 4% 15 1% 7 % 1 % 8 % 95 6% 35 2% Table /25 1% % 1% -3% 6% 1% 62% 17% 11% 5% -46% -17% 3% 5% -23% Other paper and board for packaging Other boards weighing more than 15 gr/m 2 6 % 6 % 6 % 6 % 6 % -4% Others Total Other papers Total Total Total 63 4% 1 1% % 48 3% 22 2% % 49 3% 13 1% % 49 3% 2 1% % 4 2% 3 2% % -21% 33% 4% The data relative to 26 was obtained through direct surveys to the producers carried out by CELPA and RECIPAC. The data from previous years was revised in order to harmonize it with the available information in some products, for which the base for estimation was substantially improved. 57

58 58

59 6.Foreign Trade 6.1. Pulp Pulp Sales Pulp Imports 6.2. Recovered Paper 6.3. Paper and Board Paper and Board Sales Paper and Board Imports 59

60 6.Foreign Trade 6.1. Pulp Pulp Sales Total Pulp Sales, 1997 to 26 (Un. 1 ton) Figure 6.1 The total pulp Sales in 26 increased 2.3% with respect to 25. This increase was mainly due to sales in the EU25 market where it rose 7.3%. The domestic sales maintaned a the level of the previous year. The rest of the world is not the main destination of Portuguese pulp production and it had a 25, tonnes reduction, which means a decrease of 39% with respect to 25. The common market continues to be the main destination of Portuguese pulp for paper. This market absorbed 96% of the total Sales volume Exports Domestic Sales Source: INE Table 6.1 Pulp Sales 26 (Un.1 ton) EU25 Market Including Portugal Rest of the world Total Sales Total exports Note: For legal reasons it is only possible to present the data for pulp sales in an aggregated form Total Pulp Total Pulp Source: INE Figure 6.2 Total Pulp Exports, 1997 to 26 (Un. 1 ton) Source: INE 6

61 6.Foreign Trade Pulp Exports to EU, 1997 to 26 (Un. 1 ton) Figure Source: INE Pulp Imports The trend decrease in pulp imports that was being drawn since 21 has been reversed in 26. Thus, there was an increase of 11 thousand tonnes that corresponds to 27% in respect to 25. It is not possible to identify the type or types of pulp reponsible for this increase since the volume that mainly contributed to this rise is undiscriminated Pulp imports, 1997 to 26 (Un. 1 ton) Figure Source: CELPA and RECIPAC Table 6.2 Mechanical pulps Chemical pulps for dissolution Bleached sulphite pine pulp Bleached sulphite eucalyptus pulp Undiscriminated Total Pulp Imports, 26 (Un. 1 ton) Imports 26 Imports 25 variation 26/ % % % % % % Source: CELPA and RE- 61

62 6.Foreign Trade 6.2. Recovered Paper Table 6.3 Recovered Paper Imports (Un. 1 ton) EU Market Including Spain Other european countries American Continent Middle East, Asia and Oceania Africa Total Imports Total Source:Eurostat The exports of recovered paper are carried out by the paper/ board Collectors, while the imports of recovered paper are mainly carried out by the Recyclers. The foreign trade of recovered paper is chiefly done with Spain. Recovered Paper Exports (Un. 1 ton) EU Market Including Spain Other european countries American Continent Middle East, Asia and Oceania Africa Total Imports Total Table 6.4 Source: Eurostat 62

63 6.Foreign Trade 6.3. Paper and Board Paper and Board Sales The 26 sales volume maintained the same level of the previous year, with a slight rise. Being aware of the improvement in the gathering of data in 26 through the incorporation of information collected by RECIPAC using surveys, the observed growth was measured at 2% of which 1% results from the improvement in the coverage rate of the base data Paper and Board Sales, 1997 to 26 (Un. 1 ton) Figure Source: CELPA and RECIPAC In 26 there was a strengthning of the weigh exports in sales, growing from 78% to 79%. Total Paper and Board Exports, 1997 to 26 (Un. 1 ton) Figure Source: CELPA and RECIPAC Paper and Board Sales, 26 (Un. 1 ton) Table 6.5 EU Market Including Portugal Other european countries American Continent Middle East, Asia and Oceania Africa Total Sales Total Exports Total Total Source: CELPA and RECIPAC 63

64 6.Foreign Trade In 26, 84% of production was sold in the EU market (including Portugal). Paper Exports, 26 Figure 6.7 The quantities exported to Spain have grown in 26 nearing the quantities sold domestically. 4% 7% 3% 3% Still in terms of sales destinations it it important to highlight the French and German markets, as in previous years. 21% 62% EU Market (ex. Portugal ) Portugal Other european countries American Continent Middle East, Asia and Oceania Africa Source: CELPA and RECIPAC Exports to the EU Market, 26 (Un. 1 ton) Figure EU Market Source: CELPA and RECIPAC 64

65 6.Foreign Trade Figure 6.9 Main Destinations of Paper Sales in the EU MArket, 26 (Un. 1 ton) Portugal Spain Germany France Italy United Kingdom Netherlands Belg/Lux Greece Austria Denmark Source: CELPA and RECIPAC The paper and board volume sold to the Eastern European countries suffered a minor reduction. This situation occurred also in the Middle East, Asia and Oceania Markets. Yet in the case of the Americas it was possible to have a relative increase of 1% in comparison with this marbet s weigh in Paper and Board Sales by Destination, 26 (Un. 1 ton) Middle East, Asia and Oceania African Continent Figure 6.1 American Continent Other european countries Source: CELPA and RECIPAC 65

66 6.Foreign Trade Paper and Board Imports In 26 there was 2% increase in paper and board imports. The available data displays a reduction in imports of several paper types. Worth highlighting are newspaper and coated paper, since they are not produced in Portugal. However, the 36 thousand tonnes of imported paper of unknown type do not allow us to draw any conclusions. Newspaper Writing and Printing Uncoated Paper and Board, with Mechanical Pulp Writing and Printing Uncoated Paper and Board, without Mechanical Pulp Coated Paper and Board for Graphical uses, with Mechanical Pulp Coated Paper and Board for Graphical uses, without Mechanical Pulp Paper for Domestic and Sanitary Use Corrugated Board Paper for Packaging and Other Boards Paper and Flat Board for Packaging Other Paper and Board for Packaging Other Paper and Board Other Paper Undiscriminated Total Paper and Board Imports, 26 (Un. 1 ton) Imports 26 Imports Table 6.6 Variation 6/5-5% -53% 3% -1% -5% 3% -2% % 2% -4% 3% 9% 156% 2% Source: INE Figure 6.11 Paper and Board Imports, 1997 to 26 (Un. 1 ton) Source: INE

67 6.Foreign Trade Apparent Consumption of paper and board had a slight increase relative to 25. Table 6.7 Apparent Consumption of Paper and Board, 1997 to 26 (Un. 1 ton) Apparent consumption of paper and board Annual variation (%) 5% 6% 8% -14% -8% 3% 22% 7% 1% Apparent consumption = Domestic sales + Imports Source: Eurostat Table 6.8 Imports and Exports of Recovered Paper, 1997 to 26 (Un. 1 ton) Imports Exports Source: Eurostat Figure 6.12 Imports and Exports of Recovered Paper, 1997 a 26 (Un. 1 ton) 35 3 Exports Imports Source: Eurostat 67

68 68

69 7.Environmental and Energy Indicators 7.1. Water Consumption 7.2. Effluents 7.3. Gas Emissions 7.4. Solid Waste 7.5. Energy Consumption 7.6. Quality, Environmental Management, Laboratory and Security Certification 69

70 7.Environmental and Energy Indicators This chapter continues our efforts of gathering, systematising and sharing with the public information relevant from the environmental point of view. CELPA began publishing this information in the 21 Statistics Report. Additional environmental information on each of CELPA s members can be found in the EPER (European Pollutant Emission Register) database on eper/ Water Consumption The water used by the paper industry has been consistently decreasing in recent years. In 26, the water consumption was approximately 96.3 million m3, which meant a decrease of 2.6% relative to 25. This reduction has been possible thanks to an investment program that has rationalised water circuits by optimising each phase of the manufacturing process. milhões de m Figure 7.1 Total Water Consumption Total Volume m 3 por ton de produção Total Water Consumption Water Consumption/Tonne Produced Source: CELPA Total Water Consumption Water Origin Figure 7.2 The volume of water necessary to produce each tonne of pulp and paper has been falling even more dramatically, which has made it possible to compensate for the increases in production. In 26, 26.3 m3 of water were necessary to produce each tonne of pulp and paper, which was 5.6% down on 25 (27.9 m3). As in previous years, the water used by the paper industry in 26 came mainly from surface consumption (rivers and reservoirs), representing 67% of the total water obtained. 1.m Surface water Subterranean water Source: CELPA 7

71 7.Environmental and Energy Indicators 7.2. Effluents As with water consumption, the volume of effluents emitted has been falling, in spite of the substantial increase in production. In 26, there was a 1.5% reduction in total effluent produced and a 4.8% reduction in effluents per mill when compared to m Discharge of Effluents Total Volume Figure m 3 / ton de produção Effluent produced Effluent produced per tonne of production Source: CELPA Figure 7.4 What happens to the effluents depends essentially on the location of the mills, mainly near the coast or in the Tagus Valley. In 26, 67.6% of the effluent was discharge into the ocean, 2.8% into estuaries and 11.6% into rivers and reservoirs. Effluents discharged into the ocean occur at a considerable distance from the coast using underwater pipes. 1.m Discharge of Effluents Destination Rivers, reservoirs and Lakes Estuaries Ocean Source: CELPA Figure 7.5 All the produced effluents are treated before being released into the environment. In 26, about 7.3% of the effluent underwent primary treatment followed by secondary treatment before release and the remaining 29.7% received only primary treatment. Secondary treatment 7,3% Type of Final Effluents Produces, 26 Primary treatment 29,7% Source: CELPA 71

72 7.Environmental and Energy Indicators Figure 7.6 Effluents Quality Total Suspended Soils The quality of the effluent released continued to improve in 26, with reductions of 19.3% in biochemical oxygen demand, 11.3% in total phosphorus, 8.9% in total suspended solids and 2.4% in total nitrogen, compared to The values of chemical oxygen demand were kept stable while there was an increase in Adsorbable Organo-Chlorate Compounds (AOX) of 9% ton kg / ton de produção Total suspended soils Total suspended soils per tonne of production Effluents Quality Chemical Oxygen Demand Source: CELPA Figure ton 7. 4 kg / ton de produção Total Chemical Oxygen Demand Chemical Oxygen Demand per tonne of production Effluents Quality Biochemical Oxygen Demand Source: CELPA Figure ton 2. 1 kg / ton de produção Total Biochemical Oxygen Demand Biochemical Oxygen Demand per tonne of production 72 Source: CELPA

73 7.Environmental and Energy Indicators Quality of Effluents Adsorbable Organo-Chlorate Compounds Figure , 1.6,8 ton 1.2 8,6,4 kg / ton de produção 4, , Adsorbable Organo-Chlorate Compounds Adsorbable Organo-Chlorate Compounds per tonne of production Source: CELPA Quality of Effluents Total Nitrogen and Total Phosphorus Figure 7.1 ton Total Nitrogen Total Phosphorus Total Nitrogen per tonne of production Total Phosphorus per tonne of production g / ton de produção Source: CELPA 73

74 7.Environmental and Energy Indicators 7.3. Gas Emissions Figure 7.11 The main sources of gas emissions in the paper industry are associated with the need to produce steam and electricity, the recovery of processing chemicals and the production of lime for the processes Quality of Gas Emissions Total Particles 5 In 26 the indicator for total particles, which reflects the quantity of suspension particles in the gas emissions, has had a 2.8% decrease in relation to 25. ton kg / ton de produção Total particles Total particles per tonne of production Source: CELPA Figure 7.12 The emission of acidifying gases, in 26, had a global reduction of 8.7% relative to 25. Quality of Gas Emissions Acidifying Gases, Direct Emissions by Type of Pollutant This global reduction results from a reduction of 8.7% in the emited sulphur oxides, 5.9% in the nitrogen oxides and a rise of 7.3% in the reduced sulphur compounds, relative to the previous year. 1. ton SO 2 eq , 6, 5, 4, 3, 2, kg SO 2 por ton produção 2 1,, SOx Sulphur Oxides NOx Nitrogen Oxides H 2S Sulphidric Acid GA per tonne of production Source: CELPA 74

75 7.Environmental and Energy Indicators Quality of Gas Emissions Acidifying Gases, Sulphur Oxides (SO 2 and SO 3 ) Figure ton 5. 2 kg / ton de produção Total Sulphur Oxides Total Sulphur Oxides per tonne of production Source: CELPA Quality of Gas Emissions Acidifying Gases, Nitrogen Oxides (NO and NO 2 ) Figure , ,5 ton 2.5 1, kg / ton de produção 1.25, Total Nitrogen Oxides Total Nitrogen Oxides per tonne of production, Source: CELPA 75

76 7.Environmental and Energy Indicators Pulp production mills emit unpleasant smelling gases. The smell is mainly the result of emission of reduced sulphur compounds. It should be noted the human sense of smell is particularly sensitive to the odour of these compounds and can detect tiny concentrations in the air, of the order of parts per billion. Although it is impossible to eliminate them completely, the pulp industry has been investing considerably in reducing emissions of this type of gases. In 25 the production of these gases rose 7.3% when compared to 25, but remained under the values of the previous years. ton de H 2 S Quality of Gas Emissions Odours Direct emission of reduced sulphur compounds Reduced sulphur compounds Figure 7.15 Reduced sulphur compounds per tonne of production,1,67,33, kg H 2 S / ton de produção Source: CELPA Figure 7.16 In what concerns the emission of greenhouse gases (fossilbased carbon dioxide, methane and nitrous oxide) there was a reduction of 1.1% in total emissions and of 4.3% in the emissions per tonne of production, relative to Quality of Gas Emissions Greenhouse Gases Direct emissions by type of Pollutant 4 These reductions have been possible in spite of the increase in production and the resulting rise in energy consumption, thanks to the increased consumption of biomass and natural gas and the reduction in the amount of fuel oil used. 1. ton CO 2 eq kg CO 2 eq. por ton de produção CO2 Carbon Dioxide N2O Nitrous Oxide CH4 Methane GEE per tonne of production Quality of Gas Emissions Greenhouse Gases Direct emissions by type of use Source: CELPA Figure ton CO 2 eq Fuel for Steam and Electricity Production Fuel for Other Uses Process Emissions Source: CELPA 76

77 7.Environmental and Energy Indicators 7.4. Solid Waste The production of solid waste resulting from the main industrial process is directly related to the production pattern of pulp and paper. Moreover, other types of waste are also produced, resulting for example from the demolition or construction of buildings and the figures therefore vary significantly from one year to another. 1. ton Production of Solid Waste Figure Other Solid Waste Ash, Slag, Dust and Other Waste from Boilers Sludge Sorting of Recovered Paper and Production of Pulp from Recovered Paper Wood and Wood Shavings Source: CELPA Figure 7.19 In 26 the solid waste destinations that stand out are the use of the total sludge and ash from the burning of biomass in agriculture and as compost, representing 27% of the total waste, and the energy production, corresponding to 45% of the waste. The landfills absorbed 18% of the produced waste. 1. ton Solid Waste Disposal Landfill Energy Production Agriculture and Compost Use by Other Industries Other Uses 7.5. Energy Consumption Consumption of biofuel increased 6.3%, while there was an increase of 2% in fossil fuels compared to 25. Total fuel consumption rose by around 5.1% in relation to 25, reaching a figure of 52,839 TJ. This increase was due mainly to growth in production in this year (4% in total pulp and 3.4% in total paper) and growth in electricity production. PJ (milhares de milhões de Joule ) Source: CELPA Figure 7.2 Fossil Fuel Consumption Fuel Oil Natural Gas Other Fuels Source: CELPA 77

78 7.Environmental and Energy Indicators Biofuel is still the dominant fraction of fuel used in this sector and representing 74% of the total consumed in 26. The main biofuel used is black liquor a by-product of pulp production which represented 81% of the biofuel used in 26. Within the fossil fuels, again there was an increase in natural gas consumption representing 58% of fossil fuels. Once more it exceeded fuel oil consumption (traditionally the most used fossil fuel), which now represents 36% of consumed fossil fuels. PJ (milhares de milhões de Joule) Figure 7.21 Biofuel Consumption Black Liquor Wood Bark and Waste Other Biomass In 26, this sector maintained its excess of electricity production, exceeding consumption in 2%. This fact was due to a reduction in electric energy consumption of 1.8%, while in the production side there was a growth of 4.7%, relative to the previous year. Electricity production was numbered at 2.14 TWh in 26. TWh Electricity Production and Consumption Source: CELPA Figure Electricity Production Electricity Consumption Source: CELPA Figure 7.23 The sector s energy efficiency (quantity of energy needed to produced each tonne of product) has been improving. This increased efficiency is more evident in fuel than in electricity consumption. Nevertheless, it should be noticed that, in the sector, paper production has expanded faster than pulp production and the first demand more electricity than the second. Therefore the apparent stability of the specific electricity curve actually reflects considerable gains in energy efficiency. GJ / ton de produção Energy Consumption per Unit of Production 1,5 1,2,9,6,3 MWh / ton de produção, Electricity per tonne of production Fuel per tonne of production 78 Source: CELPA

79 7.Environmental and Energy Indicators 7.6. Quality, Environmental Management, Laboratory and Security Certification Fraction of Paper Produced in Certified Mills Figure 7.24 Quality management was the first priority of the industry in terms of certification of its management processes. Nowadays the whole industry possesses these certificates. Environmental management has become increasingly important in the Portuguese paper industry. As a result, the first mills received ISO 14.1 certification in 1999 and the first EMAS was awarded in 21. In 26, 81% of Portuguese paper was produced at ISO 14.1 certified mills and 11% at mills certified by the EMAS. 1% 8% 6% 4% 2% % Environment: ISO Environment: EMAS Quality: ISO Laboratory: ISO Security: NP and OHSAS Source: CELPA The certification of laboratories ensures the quality of laboratory processes used in quality and environment control. In 26 the whole industry had these certificates in its laboratories. Security certification was the next natural step. In 26, 74% of production had its origin in mills with this kind of certification. 79

80 8

81 8.Social Indicators 8.1. Workforce Characterisation 8.2. Qualification and Training 8.3. Occupational Health Safety 8.4. Work Accidents 81

82 8.Social Indicators 8.1. Workforce Characterisation The pulp and paper sector is responsible for about 3253 workplaces of direct employment, as well as a number of indirect employments resulting from the activities developed around each mill which are very hard to account for. Total Direct Employment Table 8.1 Evolution of Direct Employment, 1997 to CELPA Universe Since 21 the number of direct employment has been decreasing due to the restructuring of the sector. Workforce Composition Figure Numero_total_Homens Numero_total_Mulheres CELPA Universe Figure 8.2 The fraction of permanent employess rose from 91% in 25 to 97% in 26. This relative increase shows that the reduction in the total direct employment was mainly caused by the ending of short term employment contracts. 98,% 97,% 96,% 95,% 94,% 93,% 92,% 91,% 9,% 89,% 88,% Fraction of Permanent Employees CELPA Universe

83 8.Social Indicators Figure 8.3 As a consequence of the 1% decline in the number of permanent employees between 25 and 26, and of the growth of the permanent workers fraction, its annual variation decreased to 6.4%. Annual Variation of Permanent Employees, 1997 to 26,% -1,% ,% -3,% -4,% -5,% -6,% -7,% -8,% -9,% -1,% CELPA Universe Figure 8.4 Absentee Rate and Overtime Rate, 1997 to 26 The absentee rate has been nearly constant since 23.The rate of overtime work suffered a slight increase reaching a level similar to the one of 24. 6,% Tx Absentismo Tx.Trab. Suplementar 5,% 4,% 3,% 2,% 1,%,% CELPA Universe Figure 8.5 In 26 there was a reduction of the personnel costs as a result of the reduction of direct employees. Evolution of Total Personnel Costs, 1997 to 26 (thousand euros, current prices) However, there was an increase of 6% in the costs per permanent worker CELPA Universe 83

84 8.Social Indicators Total Cost per Employee, 1997 to 26 (thousand euros, current prices) Figure CELPA Universe Figure Qualification and Training The pulp and paper sector has been investing in a more qualified workforce. Tipically, in the last 1 years there has been constantly a higher qualification of the female employees, either in higher education and in secondary school. Since 1997 the fraction of employees with higher education has gone up from 1% to 18%. In the case of women the increase of the fraction with higher eduction was from 16% to 38%. Less than Primary School Secondary School 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Employees Qualifications, st to 3rd Cycles Higher Education Men Women Total CELPA Universe 84

85 8.Social Indicators Figure 8.8 In 26, there was a strengthening of the previous trend of increase of the average workers qualification, especially for women. The increase of 3% in the number of workers with higher education results from an increase of 5% in both men and women workers. 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Less than Primary School Secondary School Employees Qualifications, 26 1st to 3rd Cycles Higher Education Men Women Total CELPA Universe Total Training Hours Table 8.2 Training Hours, 1997 to CELPA Universe Figure 8.9 In 26 the trend of reduction of the training rates is maintained, resulting from the reduction of the total hours of training as well as total workable hours. The training effort per worker was of 31.6 hours. Training Rates, 1997 to 26 4,% 3,5% 3,% 2,5% 2,% 1,5% 1,%,5%,% CELPA Universe 85

86 8.Social Indicators 8.3. Occupational Health Safety Concerns with work safety are constant and much present in the companies daily management. This concern has brought the introduction of a group of training actions concerning the various security aspects associated with each of the functions with greater risk of accident, as well as the increase in expenditure in occupational medicine by the companies. In 26, there was a 27% increase in the number of medical exams, in spite of a significant decrease of the number of exams done due to new workers admission. The spending per worker in occupational medicine has grown 2% when compared to 25. In 26, there was an increase of 23% in the global costs of security per worker. The item which contributed the more significantly was the acquisition of protection Table 8.3 Occupational Health Indicators, 1997 to 26 Total Medical Examinations Admission Examinations Routine Examinations Occasional and Diagnostic Examinations Number of Visits in Workplace Cost of Occupational Medicine per Employee (EUR, current prices) CELPA Universe Table 8.4 Investments in Safety per Employee, 1997 to 26 Structure Costs of Occupational Medicine and Safety Cost of Protection Equipment Cost of Risk Prevention Training Other Costs Total Investments in Occupational Medicine and Safety CELPA Universe 86

87 8.Social Indicators 8.4. Work Accidents Work Accidents, Figure 8.1 The result of the the concerns and action of risk prevention and medical prevention as been shown once again in 26. The number of days lost due to work accidents has been almost stable in the last 3 years in spite of the 3% increase in the last year. As in 25, the number of disability cases reported per year has been null. This fact reveals the efficiency and efficacy of the policies developed by the firmsin this area. Hours Lost Due to Work Accidents Number of Disability Cases Reported per Year As a result of the 3% rise in the number of lost hours due to work accidents the accident rate has grown from.5% to around.6%. Cost per Employee of Work Accident Prevention, 1997 to 26 (Euros) CELPA Universe Figure Cost of Occupational Medicine and Safety Structure Cost of Protection Equipment Cost of Risk Prevention Training CELPA Universe Figure 8.12 Accident Rate 1,2% 1,%,8%,6%,4%,2%,% CELPA Universe 87

88 88

89 9.Financial Indicators 89

90 9.Financial Indicators In 26 there was a 4% growth in sales and a significant increase in the firms results. Moreover, the several financial indicators progressed positively when compared with the previous year. The employees productivity grew 17% and the gross added value per produced unit maintained the 25 level with a slight increase of 1%. These increments are the result of an increase of 5% in gross value aded, an increase of %% in total production and a reduction in the number of employees. Table 9.1 Financial Indicators, 1997 a Net return on sales * Return on equity * Sales/equity Total liabilities/equity Operating return on sales * Return on invested capital * GVA/tonne produced (EUR per tonne) Productivity (EUR thousand per employee) * Equity/total net assets Number of employees 1% 6% 66% 31% 24% 5% % % 2% 57% 25% 23% 1% % % 4% 62% 3% 26% 3% % % 13% 8% 53% 38% 9% % % 7% 96% 114% 4% 3% % % 8% 94% 13% 121% 4% % % 6% 91% 112% 134% 3% % % 5% 11% 16% 21% 3% % % 6% 14% 1% 23% 3% % % 12% 13% 9% 25% 6% % CELPA Universe *Net return on sales = Net results / sales Return on equity = Net profit /equity EBITA = Operating results + Amortisation Operating return on sales = EBITA /sales Return on capital invested = Net profit /total net assets Total investment = Tangible assets + Intangible assets Productivity = GVA /Number of employees 9

91 9.Financial Indicators Productivity, GVA per Tonne Produced and Investment Made Figure GVA per produced tonne (EUR per tonne) Productivity (EUR per tonne per employee) Total investment (gross assets, EUR thousand) CELPA Universe Sales Net profit Operating Amortizations Total gross assets Total net assets Fixed assets (gross) Total liabilities Equity Gross Value Added Pulp and paper tonnage Annual Variation of Some Indicators of the Pulp and Paper Sector (Un. thousand euros) Table /25 7% 14% 71% -35% 5% 2% 4% -3% 8% 12% 5% CELPA Universe 91

92 92

93 1.International Comparisons 1.1. International Market Indicators 1.2. The Pulp and Paper Sector 93

94 1.International Comparisons 1.1. International Market Indicators Short-term Evolution of Pulp Price Indices, 21 to 27 Figure euros/ton NBSK BHKP Short-term Evolution of Paper Price Indices, 21 to 27 Source: PIX Figure A4 B-copy CWF (REELS) LWC (REELS) Evolution of Oil Prices (Brent Crude), 1991 to 27 Figure Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan- Jan-1 Jan-2 Jan-3 Jan-4 Jan-5 Jan-6 Jan-7 Source: PIX US$/Brt 94 Source: DGE -

95 1.International Comparisons 1.2.The Pulp and Paper Sector Table 1.1 Austria Belgium Czech Republic Finland France Germany Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom CEPI Total EU-25 Total Chemical Pulp Production by the CEPI Countries (Un. 1 ton) Relative wheigh of each country 4,4% 1,2% 1,8% 3,% 5,7% 6,8%,%,% 1,6%,3% 5,3% 2,4% 5,% 1,4% 4,7% 28,1%,5%,7% Source: CEPI 95

96 1.International Comparisons Table 1.2 Paper and Board Production in CEPI Countries (Un. 1 ton) Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Total CEPI Total EU Relative wheigh of each country n.a n.a. 569 n.a n.a n.a. 546 n.a ,1% 2,% 1,% 13,8% 9,8% 22,2%,5% 9,8% 3,3% 2,1% 2,8% 1,6%,9% 6,2% 11,8% 1,7% 5,5% Source: CEPI 1.3. Paper and Board Production by Type Table 1.3 Uncoated Paper Production without Mechanical Pulp in CEPI Countries (Un. 1 ton) Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Other CEPI Countries CEPI Total EU-25 Total Relative wheigh of each country ,% n.a ,1% n.a. n.a n.a. n.a n.a ,6% ,% n.a. n.a ,% n.a. n.a ,3% ,6% ,5% ,1% ,6% ,1% ,5% ,% ,7% ,3% ,5% Source: CEPI 96

97 1.International Comparisons Paper Production for Domestic and Sanitary Uses in CEPI Countries (Un. 1 ton) Table 1.4 Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Other CEPI Countries CEPI Total EU-25 Total Relative wheigh of each country n.a. n.a n.a. n.a. n.a n.a. n.a n.a. n.a. n.a ,9% 1,5%,8% 11,5% 19,6% 22,1% 1,7%,3% 5,6% 1,% 2,1% 9,5% 5,% 1,5% 12,6% 3,2% Source: CEPI Table 1.5 Corrugated Board Production in CEPI Countries (Un. 1 ton) Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Other CEPI Countries CEPI Total EU-25 Total Relative wheigh of each country ,4% n.a. n.a ,1% n.a. n.a ,5% ,% ,5% n.a. n.a n.a n.a. n.a ,5% ,5% ,3% ,% ,5% ,9% ,% ,8% ,2% ,2% 66 2,5% Source: CEPI 97

98 1.International Comparisons Table 1.6 Production of Paper and Board for Packaging in CEPI Countries (Un. 1 ton) Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Other CEPI Countries CEPI Total EU-25 Total Relative wheigh of each country ,5% ,% ,2% ,3% ,2% n.a. n.a. n.a. 222 n.a. 5 n.a n.a. 274 n.a. n.a n.a. 8 n.a n.a ,6% 1,4%,7% 5,% 1,7%,5% 3,8% 25,8%,8% 19,6% Source: CEPI Table 1.7 Production in CEPI Countries (Un. 1 ton) Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Other CEPI Countries CEPI Total EU-25 Total Relative wheigh of each country n.a n.a n.a. 26 n.a n.a n.a n.a. n.a. n.a n.a ,4%,6%,6% 16,9% 6,3% 22,7% 1,9% 7,2%,5% 2,%,6%,% 2,8% 19,9% 1,3% 3,3% Source: CEPI 98

99 1.International Comparisons Consumption (Use) of Recovered Paper in CEPI Countries (Un. 1 ton) Table 1.8 Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Norway Poland Portugal Slovakia Spain Sweden Switzerland United Kingdom Other CEPI Countries CEPI Total EU-25 Total Relative wheigh of each country n.a. 377 n.a n.a n.a. 419 n.a ,9% 2,3%,9% 1,5% 12,4% 31,2%,9% 11,4% 4,8% 1,% 2,1%,7%,4% 11,% 4,2% 2,% 8,5% Source: CEPI 99

100 1

101 11.The Pulp, Paper and Board Industry 11

102 11.The Pulp, Paper and Board Industry 11. The Pulp, Paper and Board Industry Pulp and Paper Industry is the general designation given to a set of organizations connected to production of pulp for papermaking and paper and board of different types. In reality the activity of this industry extends to almost all the life cycle of paper products, taking part in activities from the production of raw-material (forest production) to the products treatment at the end cycle (through recycling or energy production using recovered paper). We are, therefore, before a type of industry with unique characteristics in the Portuguese and world industrial panorama. We are, therefore, before a type of industry with highly unique characteristics in the Portuguese and World industry. The main activity of this industry is related to the various stages of the paper productive process, beginning in wood production (the Portuguese paper industry is responsible for the direct management of about 18, ha of forest), its harvest and manufacturing of pulp for papermaking and finally the manufacturing of different types of paper and board. Figure 11.1 Production Cycle of Pulp and Paper Industry Carbon Dioxide Sustainable Forest Management Energy Recovery Waste and Nonrecoverable Paper Paper and Board Recovery Paper and Board Products Recycled Fibre Wood shavings and Wood Virgin Fibre Pulp and Paper Mill Source: CEPI 12

103 11.The Pulp, Paper and Board Industry In addition to the main circuit there are various activities supporting and assisting the main activity, which are: 1. Tree Nurseries. This activity is responsible for producing plants that will be the source of the future forests. Most of the production is obviously intended for the industries own stands but some of them go also to other private owners. 2. Management of Forest Areas. Direct management of forest areas, owned or rented, by the producers of pulp, paper and board constitutes a privileged form of intervention in the forest sector. It enables the companies to secure part of the supply of wood and promote the modernisation of practices, optimise the resources and introduce more exigent technologies for forest intervention. Often used as a demonstration or as the motor of promotion to third parties, forest management of industrial companies has made them pioneers in the voluntary adoption of codes of good practices in forestry and development of R&D programmes in partnership with universities and other institutions. 3. Supply of Wood. The vast quantities of wood consumed by the industry are produced by a large number of forest producers, most of whom with minute areas of intervention. The impact of this activity on the service sector in terms of forestry and transport is extremely important as the competitiveness of the Portuguese paper industry depends on it to a large extent, as opposed to other non-eu paper producers, where social and environmental standards are not so stringent. 4. Water Catchment, Treatment and Release. The water treatment unities not only guarantee a water supply with the required quality for the manufacturing process (water supply), but also ensure that the effluents have the minimum organic, physical and chemical requirements specified by the authorities for each mill (effluents). 5. Energy Production. The industry produces and consumes considerable amounts of energy in various forms throughout the production process: wood digester; pulp machine; paper machine; treatment of effluents and gas emissions; recovery of used paper. Most of the energy is produced by the mills themselves by burning fuel such as biomass resulting from wood preparation (bark and other waste) and dissolving the lignin from wood (black liquor). 13

104 11.The Pulp, Paper and Board Industry 6. Chemical Recovery. Pulp and paper production uses various chemical products, mainly in the wood digester, in the bleaching processes and in the paper machine. Some of these chemicals work in almost closed circuits, being used in the manufacturing process and subsequently recovered for re-use. Therefore, usually there are on-site facilities dedicated to that recovery. 7. Solid Waste Sorting and Treatment. This industry does not produce hazardous waste. Nevertheless, it produces considerable amounts of solid waste. Nowadays most mills possess controlled landfills for the secure deposit of this waste. They also have mechanisms to sort the waste by types, enabling the treatment, recycling, re-usage or energy production with some of the produced waste, thus reducing the quantities deposited in landfills. 8. Paper Recovery. Some mills use as raw-material not only virgin fibre but also fibre from the recycling of recovered paper, carried out in facilities dedicated to that purpose. 9. Process and Quality Control. Given the complexity of this kind of industrial facilities and the need to guarantee a process articulation and the product quality, complex systems of sampling and control are set in the main stages of production. 1. Research & Development. The constant evolution of the required quality profile for paper products, the need to create and adapt products to the conditions and demands of the main markets, as well as the need to increasingly optimize the production processes, from forest management to industrial production, have determined the strategic goals for an abundant activity of research and development, conducted with the companies own resources or in partnership with several organizations, like universities or research institutes. The articulation between these various activities is schematically illustrated in the figure of the next page. 14

105 11.The Pulp, Paper and Board Industry Process Schematization Seedlings effluents Water Effluents Treatment catchment waste water treated water Nurseries Recovery of Chemicals treated water waste water Seeds chemicals other subsidiary materials Forestry Pulp Mill Paper Mill wood pulp machine paper recovery preparation and finishing pulp preparation planting maintenance Forest Wood Pulp harvesting digester bleaching paper machine Paper screening and washing coating dyeing add chemicals calendering manufacturing and packaging sawmill waste other fuel Energy Production electricity steam thermoelectric energy electricity steam Recovered Paper Consumption other industries and final consumer National Grid electricity Legend: Main product Complementary product Main process Complementary product 15

106 16

107 12.Other Statistical Data Forest Production, Sales and Consumption Data 17

108 12.Other Statistical Data 12.1 Forest Table of Figure 2.1 Area by soil use (thousand hectares), in mainland Portugal Forest Brush Agriculture Social Areas and Other Inland Water 1995/98 25/6 3349,3 254,6 2972,9 395,7 17,3 8879,8 3412,3 1898,6 328,3 413,5 143,8 8896,5 Variation ,4 17,8 36,5 16,7 Source: IFN, DGRF Area by type of forest (thousand hectares),in mainland Portugal Table of Figure 2.2 Forest Burnt Forest Area Harvested Areas Other Forested Areas 1995/98 25/6 32,9 79,3 27,5 41,4 3349,1 3136,8 213,3 41,1 21,2 3412,4 Variation -64, ,6-2,2 63,3 Source: IFN, DGRF Table of Figure 2.3 Burnt area by species (thousand hectares), in mainland Portugal Table of Figure 2.4 Harvested area by species (thousand hectares), in mainland Portugal Burnt Harvested Maritime Pine Eucalyptus Cork Oak Holm Oak Oaks Umbrella Pine Chestnut tree Other 116, ,9 3,4 1,5,3,5 8,4 Maritime Pine Eucalyptus Cork Oak Holm Oak Oaks Umbrella Pine Chestnut tree Other 15,4 22,8,6,7 1,8 Source: IFN, DGRF Source: IFN, DGRF 18

109 12.Other Statistical Data Table of Figure 2.1 Burnt area in mainland Portugal (hectares) Forests Brush Table of Figure 2.11 Burnt forest area in mainland Portugal by species, in 26 Maritime Pine Other hardwoods Eucalyptus Holm Oak Cork Oak Other softwoods Mixed Undiscriminated % 26,3%,8% 27,4% 2,1% 2,% 2,4% 18,6% 2,3% Source: DGRF Source: DGRF Burnt forest area in mainland Portugal by species, 21 a 26 (hectares) Table of Figure 2.12 Maritime Pine Eucalyptus Other species Undiscriminated Source: DGRF Table of Figure 2.13 Burnt Areas by Species in relation to the Species Total Area in Mainland Portugal Maritime Pine Eucalyptus Other species 21 2,%,9%,8% ,3% 2,1%,9% 11,2% 8,7% 6,1% 1,1% 1,5% 1,9% 9,% 8,1% 2,5% 1,4% 1,6%,7% Source: DGRF 19

110 12.Other Statistical Data Table of Figure 2.14 Burnt Areas Belonging to CELPA Members Burnt areas CELPA (ha) Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 Table of Figure 2.15 Proportion of Burnt Areas Belonging to CELPA Members Burnt areas CELPA (%),6%,2%,2%,85%,58%,93% 13,17% 1,79% 6,27% 2,34% Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 Table of Figure 2.17 Hours Flown per Campaign by Helicopters Hired by CELPA Members Table of Figure 2.18 Water (in m 3 ) Used per Campaign by Helicopters Hired by CELPA Members Hours Flown Water used (in m3) ,8 344,92 283,5 383,58 382,62 268, 228, 312, 47, 195, Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 Source: CELPA, 1997 to 21 and AFOCELCA, 22 to 26 Table of Figure 2.2 Area Managed by the Paper Industry Own use Sale Own use Sale Own use Sale Own use Sale Own use Sale Euclyptus Maritime Pine Cork Oak Other species Source: CELPA 11

111 12.Other Statistical Data Production, Sales and Consumption Data Wood Imports, 1997 to 26 Table of Figure Eucalyptus 2% 2% 13% 9% 7% 4% % % % 1% Pine 5% 1% 6% 13% 26% 1% 7% 2% 1% % Source: CELPA Table of Figure 3.6 Pulp for Papermaking, 1997 to 26 Pulp Sales (Un. 1 ton) Table of Figure 6.1 Pine Eucalyptus Exports Internal Market % 76% 76% 7% 68% 69% 68% 72% 63% 61% 23% 24% 24% 3% 36% 38% 35% 4% 41% 42% Source: CELPA Table of Figure 6.4 Pulp Imports (Un. 1 ton) Source: CELPA Source: INE 111

112 12.Other Statistical Data Table of Figure 6.5 and 6.6 Paper and Board Sales (Un. 1 ton) Exports Domestic Sales Total Source: CELPA Table of Figure 6.8 and 6.1 Paper and Board Sales (Un. 1 ton) EU Market including Portugal Other European Countries The Americas Middle East, Asia and Oceania Africa Source: CELPA e RECIPAC Table of Figure 6.9 Main Destinations (Un. 1 ton) Country Portugal Spain Germany France Italy United Kingdom Netherlands Belg/Lux Greece Austria Denmark Source: INE

113 12.Other Statistical Data Total Water Consumption Total Volume Table of Figure Total Water Consumption (1m 3 ) Water Consumption/Tonne Produced(m 3 /ton) ,9 26,3 Table of Figure 7.2 Total Water Consumption Water Origin Surface water (1m 3 ) Subterranean water (1m 3 ) Table of Figure 7.3 Discharge of Effluents Total Volume Effluent produced (1 m 3 ) Effluent produced per tonne of production (m 3 /ton) Table of Figure 7.4 Discharge of Effluents Destination Rivers, reservoirs and Lakes (1 m 3 ) Estuaries (1 m 3 ) Ocean (1 m 3 ) Municipal grids (1 m 3 ) Effluents- Treatment Table of Figure 7.5 No treatment (%) Primary treatment (%) Secondary treatment (%) Tertiary treatment (%) 26,% 29,7% 7,3%,% 113

114 12.Other Statistical Data Table of Figure 7.6 Effluents Quality Total Suspended Soils Total suspended soils (ton) TSS per tonne of production (kg/ton) 8,96 5,91 4,41 2,95 3,24 3,35 3,42 3,44 2,91 1,79 2,4 1,85 1,64 1,49 1,2 1,2,9 Table of Figure 7.7 Effluents Quality Chemical Oxygen Demand Total COD (ton) COD per tonne of production (kg/ton) 66,36 54,2 39,53 24,29 25,92 26,41 26,91 26,56 22,17 15,93 17,67 15,36 14,78 14,19 1,94 9,75 9,46 Table of Figure 7.8 Effluents Quality Biochemical Oxygen Demand BOD5 Total Load (ton) BOD5 per ton of Production (kg/ton) 17,54 14,15 8,38 5,24 4,46 4,36 4,9 4,8 3,66 2,83 3,17 2,82 2,53 2,49 2,2 2,2 1,58 Table of Figure 7.9 Quality of Effluents Adsorbable Organo-Chlorate Compounds AOX Total Load (ton) AOX per ton of Production (kg/ton),91,75,35,7,7,8,9,9,11,7,7,6,7,13,7,5,5 Quality of Effluents Main nutrients Table of Figure N Nitrogen Total Load (ton) N per ton of Production (gr/ton) 18,83 98,13 95,55 9,18 Quality of Effluents Main nutrients Table of Figure N Phosphorus Total Load (ton) N per ton of Production (gr/ton) 74,12 7,63 67,28 57,66 114

115 12.Other Statistical Data Quality of Gas Emissions Total Particles Table of Figure PM Total Load (ton) PM per ton of Production (kg/ton) 4,4 4, 1,3 1,3,9,8,7,6,5,5,4,5,4 Quality of Gas Emissions Acidifying Gases, Direct Emissions by Type of Pollutant Table of Figure SOx Sulphur Oxides (ton SO 2 eq.) NOx Nitrogen Oxides (ton SO 2 eq.) H2S Sulphidric Acid (ton SO 2 eq.) Total Acidifying Gases (ton SO 2 eq.) AG per tonne of production (kg SO 2 eq./ton) 5, 3,9 3,1 3,3 2,9 3,1 2,7 1,9 1,9 1,3 1,2 Quality of Gas Emissions Acidifying Gases, Sulphur Oxides (SO2 and SO3) Table of Figure SOx Total Óxidos de Enxofre (ton SO 2 ) SOx Total Sulphur Oxides per tonne of production (kg/ton) , , , , , , , , , , 3.264,9 2.37, ,5 Quality of Gas Emissions Acidifying Gases, Nitrogen Oxides (NO and NO 2 ) Table of Figure NOx Total Nitrogen Oxides (ton NO 2 ) NOx Total Nitrogen Oxides per tonne of production (kg/ton) 2.29, , , , , , , , , , , , 3.45,9 Quality of Gas Emissions Odours Direct emission of reduced sulphur compounds Table of Figure TRS Total Load (ton H 2 S) TRS per ton of production (kg/ton),5,6,6,1,,,,,,,,, 115

116 12.Other Statistical Data Table of Figure 7.16 Quality of Gas Emissions Greenhouse Gases Direct emissions by type of Pollutant CO 2 Carbon Dioxide fossil (ton CO 2 eq.) CH 4 Methane (ton CO 2 eq.) N 2 O Nitrous Oxide (ton CO 2 eq.) GEE Total (ton CO 2 eq.) GEE per tonne of production (ton CO 2 eq.) Table of Figure 7.17 Quality of Gas Emissions Greenhouse GasesDirect emissions by type of use Fuel for Steam and Electricity Production (ton CO 2 eq.) Fuel for Other Uses (ton CO 2 eq.) Process Emissions (ton CO 2 eq.) Table of Figure 7.18 Production of Solid Waste Wood and Wood Shavings (1 ton) 78, 112, 146, 163, 173, 129, 28, 352, Sludge (1 ton) 212, 243, 35, 295, 298, 3, 283, 288, Ash, Slag, Dust and Other Waste from Boilers (1 ton) 38, 31, 31, 31, 34, 5, 44, 53, Sorting of Recovered Paper and Production of Pulp from Recovered Paper (1 ton) 44, 52, 7, 4, 4, 7, 6, 6, Other Solid Waste 11, 17, 6, 183, 12, 23, 2, 42, Table of Figure 7.19 Solid Waste Disposal Landfill (1 ton) 137, 14, 118, 114, 67, 15, 13, 136, Energy Production (1 ton) 6, 23, 77, 115, 128, 12, 257, 338, Agriculture and Compost (1 ton) 14, 12, 16, 16, 182, 263, 25, 23, Use by Other Industries (1 ton) 8, 22, 23, 15, 13, 2, 2, 27, Other Uses (1 ton) 5, 13, 59, 172, 2, 9, 27, 45, 116

117 12.Other Statistical Data Fossil Fuel Consumption Table of Figure Fossil - Fuel Oil (TJ) Fossil - Natural Gas (TJ) Fossil - Other fuels (TJ) Table of Figure 7.21 Biofuel Consumption Biomass - Black Liquor (TJ) Biomass - Wood Bark and Waste (TJ) Biomass - Other Biomass (TJ) Table of Figure 7.22 Electricity Production and Consumption Electricity Production (MWh) Electricity Consumption (MWh) Table of Figure 7.23 Energy Consumption per Unit of Production Energy intensity - Combustíveis (GJ/ton) 17, 16,2 15,6 16, 16,3 16,1 16, 16,3 15,5 15,6 15,1 14,6 14,3 14,2 14,3 14,2 14,4 Energy intensity - Electricidade (MWh/ton),992 1,14 1,3 1,64 1,93 1,64 1,16 1,12 1,72 1,32 1,53 1,113 1,17 1,76 1,95 1,9 1,71 Table of Figure 7.24 Fraction of Paper Produced in Certified Mills Environment: ISO 14.1,%,%,%,%,%,%,%,%,% 19,6% 19,6% 55,% 55,2% 58,8% 81,7% 8,8% 8,8% Environment: EMAS,%,%,%,%,%,%,%,%,%,%,% 8,8% 8,5% 11,3% 11,5% 11,1% 11,1% Quality: ISO ,% 55,4% 52,8% 79,1% 78,9% 92,2% 96,% 96,6% 96,7% 96,9% 96,9% 96,8% 96,9% 97,3% 1,% 1,2% 1,2% Laboratory: ISO 45./ ,2% 6,3% 57,1% 55,6% 53,2% 82,9% 92,6% 93,7% 93,5% 96,9% 96,9% 96,8% 96,8% 96,7% 99,8% 1,% 1,% Security: NP and OHSAS,%,%,%,%,%,%,%,%,%,%,%,%,%,% 11,5% 51,6% 74,3% 117

118 12.Other Statistical Data Tabelas de apoio Table 12.1 Table 12.2 Purchased Wood (Historic data) (Un. 1 m 3 ) Consumption of wood (Historic data) (Un. 1 m 3 ) Eucalyptus Pine Total Eucalyptus Pine Total Source: CELPA Source: CELPA Table 12.3 Pulp Production (Un. 1 ton) For Papermaking For sale Total Source: CELPA 118

119 12.Other Statistical Data Paper and Board Production by Type (Un. 1 ton) Table Graphical Uses Domestic and Sanitary Use Corrugated Board For Packaging Other papers and boards Total Source: CELPA Table 12.5 Paper Imports (Un. 1 ton) Paper Sales (Un. 1 ton) Table 12.6 Exports Internal Market Source: CELPA Source: INE 119

120 12

121 13.Glossary 121