Subscribe to Updates in Energy & Industrials

RSS By Email

RSS By RSS

Add to Google Reader or Homepage

Subscribe in Bloglines


The Expertise Imperative and Compliance Technology
Access to a diverse array of specialized expert inputs drives superior decisions in every organizational context: within corporations, by investors and consultancies, and within nonprofits. When decision makers are confident of their decision inputs, they can respond more quickly and creatively to challenges and opportunities.




This page may include content provided by Council Members, your access to which is subject to the Terms of Use.
Find Out More

March 7, 2008

Why do environmentalists hate market pulp mills?

Analysis of: Activists invade Stora-Enso plantation in Brazil | www.paperage.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Dave Hillman, Independent Consultant, Dave HillmanDave Hillman 
Independent Consultant, Dave Hillman
Implications: Demand for papermaking pulps over the next 5 years is projected to increase by 5%/year which translates to almost 3 million mt/year.  Where will all this pulp come from?   This demand translates to 3 new world-class market pulp mills being built each year. Ideally market pulp should be (a) low cost, (b) produced from fast growing trees and (c) desireable for producing high quality printing and specialty papers.  This greatly limits the potential locations for new mills. Government regulations now require all new mills to be non-polluting and environmentally friendly.  When will this message finally get through to the environmentalists and the local population?  Are they not aware of the considerable benefits one of these world class pulp mills will mean to the local economy?  

Analysis: Stora-Enso already is operating a joint venture  1 million mt/year mill (Veracel) built in cooperation with Ara Cruz in Brazil.  Their Chinese papermills are planning to expand and will be requiring huge amounts of additional hardwood pulp.  Realizing this S-E has already announced plans to build at 3000mt/day BEKP (eucalyptus) mill in the southern state of Rio Grande do Sul.   Plantations must be planted 7 years prior to the mill's start-up.  Therefore it is imperative that upwards of 50,000 hectares should already have been planted.  Last week some 800 women demonstrated against the company claiming S-E wanted to create a "green desert" from the countryside.  Is this so bad?   Hasn't it occured to these women demonstators that the soil has been worn out by the constant planting of the same crops year and after year and that the Government encourages the planting of euclayptus trees to help restore the soil?    So....who is organizing these demonstrations?  That's a good question!  
In the case of the "workers" demonstations in Argentina last year when they laid across the bridge carrying steel and equipment to Metsa-Botnia's huge new mill in Uruguay it was suggested that these demonstrations were orchestrated by Argentina's then-president Nestor Kirschner as a means of gaining publicity to compete with Venezuela's Hugo Chavez. 
If this is true, it has nothing to do with preserving the environment!  Eventually, though, the mill did get built and is now up and running....but, nine months later than scheduled.
Then there's the case of the Green Party in Tasmania doing everything it can to stop the Gunn's company from building a 3000 mt/year (world class in every respect) BEKP mill at the northern end of the Island.  Aren't they aware that Gunn's has been maintaining E.Nitens plantations for the past 25 years and shipping the chips to Japan and Taiwan for them to make pulp?   Gunns will not be cutting down old growth natural forests.....that was already done 25+ years ago.  It's much too late to complain now!  Are they demonstrating because they think this new mill will pollute the air and water?   They only have to check existing Government regulations to see that restrictions are already in place to prevent that.  It's obviously impossible for them to believe that a new market pulp mill can be a responsible good neighbor. Gunns already announced their plans to ship most of their BEKP to the emerging (and huge!) new pulp market in India.
Going back a decade we can recall the "tree huggers" in British Columbia who were so violent in their demonstations against the logging companies condemning  them for logging "old growth natural forests". The question invariably comes up "how many old growth trees do you tree huggers need in order to be satisfied"?   The US national park service tells us that an old growth natural forest is actually an unhealthy forest.  Many of the trees are dead and decaying....leaning up against healthy trees.  The overly dense canopy overhead keeps out sunlight so no small trees can grow underneath.   Consequently, as a remedy, God sends lightning to "clear cut" that old forest so He can start over again with a new, vibrant, healthy forest!   Makes sense, doesn't it?
To summarize - why is there always such a furor over any new market pulp mill?   Each will employ thousands of well-paid workers, the company will be paying taxes to both the community as well as the State, worn out soil will be restored and the best part is that the world's societies will have the papermaking pulp  needed to produce the necessary papers such as cut-size copybond, offset paper for novels and textbooks, envelope paper, tablet paper for students etc etc.  Can any society get along without these kinds of papers?


Report a Concern

GLG News: What Experts Think Is Important





Analytics