CEO, Asia Pulp & Paper, Thailand
APP is the world’s largest integrated paper group with over 100,000 employees and global manufacturing footprint. APP produces and supplies high-quality tissue, packaging, and paper in more than 150 countries. We prioritize sustainability and ethical practices by leveraging technology and innovation, collaborating with communities, and upholding international standards in line with ESG principles.
Could you tell us the importance of markets outside Asia for the company's growth?
While we originate from Asia, we are a global company, investing in manufacturing and people across the world. Our consumer goods, like Tissues, are in demand all over the world, with the US being the biggest market globally. Commensurate with the market size, we draw up plans and strategies that are most suitable to serve our customers/consumers in the target market.
With operations in over 150 countries across six continents, we have a clear understanding of the complexities of navigating dynamic business environments, as we also look into sustainable solutions to provide everyday necessities.
How could raw material inflation affect the development of Asia Pulp & Paper? What are the plans of the company to face this situation?
Raw material inflation can be subdivided into two parts – ordinary and extraordinary. The latter was what we experienced during and in the immediate aftermath of COVID and other geopolitical issues. Not only did the raw material prices shoot up, other input costs like shipping also followed suit. Fortunately, inflation linked to such extraordinary factors has peaked out and is easing.
Coming to the point of ordinary raw material inflation, our first response is to bring more efficiency into the business and absorb costs as much as possible. We strive to reduce costs by investing in greener and more energy-efficient technology. We also reduce waste created in our operations by treating and repurposing our wastewater on-site for various applications, as well as repurposing biomass byproducts like sludge and bio-ash as fertilizers in our plantations.
We continue sourcing from a variety of sustainable suppliers to allow for flexibility. Through this, if any of our suppliers are affected by price fluctuations or potential supply disruptions, we have other suppliers that we can continue receiving sustainably-sourced fiber and wood products from.
If the time comes when the raw inflation prices impact our business greatly despite all these measures, and we have to increase costs, we remain committed to being as transparent and honest as we can with our customers, and will clearly communicate any challenges faced with mitigating costs.
Regarding the last question, how relevant is the adaptability of companies in order to thrive in adverse scenarios?
To remain competitive, companies must be adaptable in adverse scenarios to be able to continue supplying the global demand for paper products in the face of any potential challenges that may come up. Some ways that companies can remain adaptable is by harnessing technological advancements and fostering innovation.
What would you say are the biggest challenges regarding the consumers’ needs and their behaviour?
Consumer needs are constantly changing, as we have most recently seen with the notable shift in consumer preferences for more sustainable paper and packaging products. Although some brands have been making efforts to keep up with this by switching to plastic-free packaging, research has shown that less than 30% of global organizations are adequately prepared to meet regional requirements regarding sustainable packaging.
To assist more brands with the switch to plastic-free packaging, APP provides the option of using packaging by Foopak Bio Natura, APP’s flagship innovation brand, which provides consumers eco-friendly packaging options that value-add to their sustainable lifestyles.
Finally, How would you describe the significance of making partnerships with different companies and being part of events such as Tissue World? What opportunities does it provide to the company?
One sentiment that resonates with me is that collaboration is truly the key to success when it comes to achieving a sustainable future for all. I am incredibly grateful for the various opportunities APP has had through its partnerships with different companies and through its participation in leading global events such as Tissue World. These events not only provide a great platform for like-minded individuals to connect over the need for sustainability in the pulp & paper industry, but they also give us the opportunity to learn from our industry peers and allow us to glean valuable insights and best practices for achieving more sustainable operations.
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