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P

ulp

&

P

aper

Indus

try

S

tr

a

tegy

Gr

oup

Final

R

eport

In 2009, the Pulp and Paper Industry Strategy Group
commissioned a major analytical study to identify growth
opportunities for the industry. The Competitive environment of the 
Australian pulp and paper industry report was undertaken by Pöyry
Forest Industry Pty Ltd. The Strategy Group also undertook a
SWOT (strengths, weaknesses, opportunities and threats) analysis.

This chapter discusses the findings of these analyses.

Competitive environment study

Pöyry’s Competitive environment study benchmarked the Australian
pulp and paper industry against its regional competitors, assessed
the competitive environment in which the Australian industry
operates, and identified the industry’s strengths and weaknesses.

In summary, Pöyry concluded that the competitive position of
Australia’s pulp and paper industry was mixed:

■

The Australian pulp and paper industry has become
globalised over the last two decades and must now compete
in international markets.

■

Aside from the tissue sector, the rest of Australia’s pulp
and paper manufacturing assets are relatively small and
ageing, with only two new paper machines commissioned in
Australia in the last decade.

■

Coupled with relatively high personnel costs, production and
domestic freight costs are also higher in Australia compared
to countries in the Asia–Pacific region, although Australia has
a cost‑competitive advantage in its raw materials and energy
costs.

■

Australia’s expanding fibre resource gives its pulp and paper
industry a significant competitive advantage over companies
in the Asia–Pacific region.

■

Governments in the developing countries analysed have taken
a more active role in assisting new projects, although Australia
is considered to have a better environment for business.

4. Analysis

Opportunities

of

for the industry