In this Q&A article, Rohit Ghosh, Commercial Head of Paperboard, APRIL Group, outlines the reasoning behind the company’s move to into the packaging sector following the commissioning earlier this year of its new state-of-the-art paperboard manufacturing plant in Pangkalan Kerinci, in Riau province, Indonesia.
What is driving APRIL’s move to paperboard?
We have seen a continuing increase in demand for more environmentally friendly, fiber-based packaging products in recent years. There are a number of factors at play here, including the growth in e-commerce, food production and the delivery market worldwide. We are also seeing a move away from single-use plastics in many markets, along with rising demand among consumers for greater use of renewable and recyclable materials.
As of now, it looks like demand for paperboard in Asia is set to increase by more than 3% every year up to 2030. So, our move to paperboard is aligned with major global trends in the packaging space. But this is also part of our growth strategy. We want to focus on opportunities in the emerging bioeconomy where renewable, bio-based materials are going to be used to meet demand for sustainable products.
What is BoardOne’s competitive advantage?
Our plant is vertically integrated from plantation through to products. Our paperboard operation benefits from a proven and reliable supply chain and a sustainable source of high quality fibre from sustainably run plantations. This ensures a consistent supply of product as well as resource efficiencies because of cost and supply chain synergies. Another key differentiator for us is our enduring commitment to quality, productivity and cost, along with our focus on stable quality, stable supply and stable service. In sum, BoardOne is the optimal choice for customers looking for a sustainable, superior quality, renewable, bio-based paperboard product.
Where is the fibre supply coming from to meet this demand?
The fiber requirement will come from our own concessions, Supply Partners and third-party suppliers. We continue to uphold our 2015 no-deforestation commitment across the entire fibre supply chain and any supply to the mill, including those from third-party sources, will have to be compliant with our Sustainable Forest Management Policy.
We also have a target to increase the productivity of our existing plantations by 50% by 2030. So we have been investing considerable resources in R&D, land optimization, and in improvements in our silviculture.
How can you assure stakeholders that the BoardOne operations are aligned with APRIL’s sustainability commitments?
Sustainable practices are built into our manufacturing processes. In particular, our manufacturing processes benefit from responsible use of chemical, water and waste systems. Likewise, we have an ongoing commitment to the increased use of renewable energy.
Our paperboard business is also covered by our APRIL2030 commitments. These commitments commit our company to the delivery of specific, measurable sustainable growth targets, as well other goals in the areas of climate, nature and inclusive progress. In a nutshell, we want our customers to be clear that sustainability is our business model across our operations.
What sustainability certifications do your paperboard operations have?
We have PEFC certification in place for our paperboard operations. For food contact applications, we have FDA and ISEGA certifications. We also have several applications for other certifications in progress, including the EU Label and Singapore Green Label standards, as well as ISO 14001. Again, we want to give our customers absolute assurance that we are fully compliant with all relevant sustainability and environmental impact standards, both nationally and internationally.
What are the main target markets and industries for BoardOne?
There is a whole range of industries around the world that need high quality, sustainably produced packaging, from the pharmaceutical, electronics and FMCG sectors, to food service and other general packaging applications. There is also considerable potential in using recyclable paperboard, due to the higher quality and design standards expected by a growing consumer base.
How does BoardOne fit into the operations of APRIL and RGE?
Our paperboard expansion is a natural extension of our business and part of our continuing diversification into downstream products. The close integration of our estate and plantation operations with our production facilities means our paperboard business can be seamlessly incorporated into APRIL and RGE’s wider fibre operations. We should also emphasise that our paperboard business is fully aligned with APRIL’s SFMP 2.0 sustainability commitments and RGE’s sustainability vision. Ultimately, at APRIL, we see ourselves operating at the heart of the bio economy and our paperboard operations are absolutely a part of this.
