August 7, 2020
FOR IMMEDIATE RELEASE
Nick Ince, Marketing Director, Asia Pacific
Tom Hayden, Global Market Director, Graphic & Specialties and Pulp
If you're at all familiar with the graphic papers market, then you've been hearing for years that it's in a decline — and that's true. On average, the global market has been dropping by roughly 3.2% CAGR (compounded annual growth rate) for the last five years. However, the good news is that there are hot spots where potential growth opportunities exist in this declining market.
Focus on Viable Assets
First, it's important to consider the top, most viable paper machines. These are the assets that will operate long-term, providing good, stable business. The Fisher Viability Index Ranking Value chart (Fig. 1) shows all the graphic paper producers in the world, with the higher value also being the greater risk. The machines in red are at high risk of being shut down or converted to more financially stable paper grades.
The most viable machines will typically be the modern, large machines that are the lowest cost and most efficient to operate. However, smaller machines producing higher value specialty grades are also viable.
Focus on Growth Subsegments
Second, it's important to understand that not all segments of this market are equal. While the market as a whole is declining, there are growing subsegments. For example:
The digital print market, especially, should be a target segment. This includes the new, high-speed, roll-fed, inkjet printers and HP Indigo printing. The number of pages printed on these have been growing at 20% plus annually. The advent of new printing techniques requires changes in paper properties, and both high-speed inkjet and HP Indigo printing require paper with specific surface treatments to ensure the highest print quality. To address this need, Solenis has developed a new line of imPress™ paper additives, with imPress IJ technologies for high-speed inkjet printing and imPress ID technologies for HP Indigo printing. These additives help paper producers achieve the necessary print quality and printer runnability for their end customers. This is just one case where Solenis aligns research and development resources to focus on the future growth of subsegments.
Aligning With Market Needs
It's also important to understand and align with market needs, especially in the areas of cost reduction, development of new grades and machine conversions.
For paper producers seeking to increase growth, it's important to work with suppliers and technology providers that can offer a broad array of capabilities for specific applications. As a leading global chemical supplier for the printing and writing market, Solenis is equipped with a long history of delivering both the technology and experience to help keep machines viable, even in a declining market.
With more than 30 years of specialty chemical experience in the paper industry, Nick Ince is responsible for driving Solenis growth in the regional market segments for graphic & specialty and tissue & towel in Asia Pacific. Originally from the U.K., Ince has been based in Shanghai for over 10 years. He holds a bachelor's degree in Chemistry from the University of Sheffield.
Tom Hayden is a Pulp and Paper Engineer graduate out of the University of Wisconsin — Stevens Point with over 25 years of specialty chemical experience in the pulp and paper industry. He joined Solenis in 1992 as a sales professional and subsequently held roles in sales management and, most recently, marketing, where his current responsibilities include driving growth in the global market segments for graphic & specialties and pulp industries.
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