2013

Pulp & Paper Industry

Portugal

aicep Portugal Global

Content

Pulp & Paper

Industry

PORTUGAL IS A BUSINESS OPPORTUNITY

Why choose

Portugal?

Strategic location

Portugal is the European nearest country to the U.S.

3-hour distance between Brazil and Russia.

Same time as UK and Ireland.

Why choose

Portugal?

Portugal 10,6

Iberian Market 51

European Market 494

Portuguese Speaking countries 220

Attractive Consumer Market

Million Inhabitants

Great and privilege economic relations

between Portugal and Brazil, Angola and

Mozambique.

Daily flights to major European cities.

Qualified Workforce

Flexible labour lawHigh-standard educationWide availabilityPartnerships with world-class US institutions

71,7%

42% At least 1 language

23% At least 2 languages

6% At least 3 languages

43,6

Working Days Lost

(per 1.000 employees – EIRO, 2005-

2009)

11,3

Portugal has a highly skilled and educated

workforce. Portugal ranks on Top within the

EU countries in number of PhDs per 1,000

inhabitants.

40% of students in tertiary education are

enrolled in engineering, sciences and health.

The increase rate in the last 3 years is about

30%.

Portuguese are known for commitment to

work which places us below the EU average

regarding working days lost per year.

Language skills: English, French and Spanish

are the most spoken languages. English is

universally taught from 1st grade.

Why choose

Portugal?

Competitive Costs

Portugal is still cost competitive according to international recognized

sources. There was a decrease of -1,2% in hourly labour costs in 2012

Q1 (Euro 27 rose by +2,0%).

In terms of real estate – industrial space - and within 53 countries/cities

worldwide, Portugal/Lisbon is the 8th less expensive location.

Portugal also has one of the lowest monthly minimum wage in Europe

(485€).

11,4 12,4

Electricity (Prices for industries in

€/100kWh – Eurostat 2012

S1)

3,4 4,0

Natural Gas (Prices for industries, in €/GJ –

Eurostat 2012 S1)

87 100

Cost of Living (HFC 2011 - Eurostat)

+1,5

Labour Cost Index (Year-on-year rate of change –

Eurostat 2012 Q1)

-1,2

Why choose

Portugal?

1,5

Technological Infrastructures

Why choose

Portugal?

Telecommunications have been

a major priority in Portugal. The

country has now 95% coverage

of broadband infrastructures.

The net increase in the

broadband penetration growth for

Portugal is above the OECD

average (Dec 2010).

The percentage of fiber connections in total

broadband is already 6% for Portugal,

ahead of countries such as Netherlands,

Finland, France, Spain, Italy, Poland,

Austria Germany or Belgium.

The Internet is also well developed.

Portugal is a United Nations case study in

terms of e-Government and its availability

of public services on-line.

0,38 0,72

Telecom Prices Euro/10 min call

Eurostat 2010

FULLY DIGITALIZED

Office Space available

Portugal offers a dynamic real estate market. High quality

space, well designed and energy efficiency oriented has

boomed and rent prices are competitive comparing the other

European countries.

Why choose

Portugal?

Occupancy cost, in €/sqm/year, C&W2011

Industrial space

123,5

52,2 79,2

Occupancy cost, in €/sqm/year, C&W2013

Office space

915

290 439

Portugal is ahead of

countries such as France

and Spain in terms o

cost. The figures are

shown for Lisbon. If we

considered Porto area,

prices can lower 25%.

Business friendly environment

Why choose

Portugal?

MULTI-CULTURAL

Portugal is very open to foreign cultures:

the availability of international schools,

the safety record and quality of life

attract expatriates.

As a result Portugal is ranked #2 in the

Migrant Integration Policy Index 2011.

“Portugal is unique in attracting young

graduates and executives.” Carlos

Brazão, Cisco Portugal

EASE OF DOING BUSINESS

• Major public services are on-line;

• Portugal is considered by the United

Nations, a case study in e-

Government;

• Average time to set up a firm is less

than 1-hour

They chose us

Why choose

Portugal?

Our decision is a result of the recognition of the hospitality and

the commitment of the Portuguese Government, of the multilingual skills of the

local population as well as its professionalism and ability, and proven success

in innovation areas.”

Chris Dedicoat, Senior Vice-President for Europe, Cisco

“

”

One of our main strategic lines was always to shorten

distances with the academic world and to bet in strong innovation,

investigation and development in Portugal thus taking advantage of the

Portuguese engineer’s excellence.

João Picoto, Chairman of Nokia Siemens Networks

Portugal

“

”

SERVICES MANUFACTURING

The best office paper in the world – the Navigator, by the Portucel–Soporcel

Group – is produced here.

Other companies like Celbi (Altri Group) and Renova help to place Portugal in

the forefront of pulp and paper production.

Pulp & Paper

Did you know…

PULP

PAPER

With a total area of about 210,000 ha managed by pulp companies, 75% of eucalyptus wood

and 73% of pine wood for this industry is sourced in Portugal;

Portugal is the 4th largest European producer of pulp and the 3rd of chemical pulps;

Portuguese sector is the 11th largest European producer of paper and cardboard, the 1st

largest of uncoated fine paper (UWF) and the 6th worldwide producer

The recovery rate of recycling paper is 63%;

Since 2000, the industry has invested over 5.000 Million € in projects for environmental

improvement;

Surplus in electricity production: 34% of the electricity produced internally from biomass

cogeneration is sold.

In 2011, water consumption has reduced 3.8% and wastewater 2.7%. Source: CELPA – Portuguese Paper Association, 2012

Pulp & Paper

Fast Figures

PULP PAPER AND BOARD

Nº companies (2011) 9

Turnover (2011 - Million €) 1,241

Exports (2011 - Million €) 532

World’s Portuguese share 1.5%

Portuguese ranking as world supplier 17th

Exports (2012 – Million €) 530

Export growing rate -0.5%

Weight in Portuguese exports 1.2%

Nº companies (2011) 486

Turnover (2011 - Million €) 2,392

Exports (2011 – Million €) 1,568

World’s Portuguese share 1.2%

Portuguese ranking as world supplier 19th

Exports (2012 – Million €) 1,604

Export growing rate 2.3%

Weight in Portuguese exports 3.5%

Source: Statistics of Portugal, February 2013, ITC – International Trade Centre

Pulp & Paper

Trade: Sustainable positive balance…

In 2012 exports exceeded by 91% the value of

2008. The Balance has been always positive

and the Top market is Spain where Portugal

has a share of 19.7%.

Trade Balance: PULP Trade Balance: PAPER

In 2012 exports exceeded by 41% the value of

2008. The Balance has been always positive

and the Top market is Spain where Portugal

has a share of 10.1%.

277 328

50

0

53

2

530

34

17

39

55

52

243

311

461

477

477

0

200

400

600

2008 2009 2010 2011 2012

Mill

ion €

Exports Imports Balance

1.1

40

1.0

90 1

.474

1.5

68

1.6

04

1.1

36

1.0

51

1.1

19

1.1

29

928

247

349

815

916

1.1

53

0

500

1.000

1.500

2.000

2008 2009 2010 2011 2012

Mill

ion €

Exports Imports Balance

Source: Statistics of Portugal, February 2013

Pulp & Paper

Main Export Products

PULP PAPER

In the Pulp segment, Portugal is strong in producing and exporting chemical wood pulp.

In the paper segment, main export products are paper and cardboard for graphic purposes.

Chemical wood pulp,

soda or sulphate

79%

Chemical wood pulp,

sulphite 11%

Recovered paper or

paperboard 10%

Paper and paperboard for writing, printing or

other graphic

purposes 69%

Kraft paper and

paperboard 9%

Boxes, cases, bags

and other packing

containers 8%

Toilet paper and similar

6%

Other 8%

Source: Statistics of Portugal, February 2013

Source: www.portucelsoporcel.com

Success Stories

Pulp & Paper

Portucel Soporcel Group is the leading European

manufacturer of UWF printing and writing paper and

the 6th largest producer in the world! Annual turnover

above 1,500 Million €. Group's sales are made to 113

countries in five continents.

Navigator, the world’s leading brand in the

premium office paper stationery segment.

The Group manages 120 thousand

hectares of forest under FSC and

PEFC certification systems.

Sales to more than 100 countries over 5

continents. Portucel‘s exports account for more

than 3% of Portuguese exports of goods.

Altri Group (Celbi, Celtejo and Caima) is one of the most efficient eucalyptus

paper pulp producers in Europe.

From 2004 to 2012, the production of bleached eucalyptus Kraft pulp

increased from 440 K to 910 K tons, following an investment of over 450 M€

Altri’s Pulp is mainly used for printing and writing, tissue and speciality

papers. With 90% of its production sold in international markets,

particularly within EU, in 2012, Altri’s turnover reached 543 M€

Altri is a fully integrated company: operates 3 pulp

mills, manages 84 K ha of double certified forests and,

through a joint venture company, is a major producer

of electrical power using biomass in four dedicated

plants (55 MW in operation, 120 MW licensed).

Success Stories

Pulp & Paper

Source: www.wellbeingworld.com

Success Stories

RENOVA has a global brand available in more than 50 countries

and it is the European leader in the colored toilet paper segment.

Renova is the brand that turned toilet

paper into an iconic media star with

the invention of black toilet paper.

Today, the colorful range of products

includes toilet paper, paper napkins,

pocket tissues and kitchen towels.

.

Renova has been winning awards for

strategy, management, product

development. Renova’s Marketing &

Branding success is a Case-study in

universities around the world.

Pulp & Paper

Source: AMS

Success Stories

Pulp & Paper

Paper tissue producer, AMS

Goma Camps operates in both

markets: consumer (toilet paper,

kitchen rolls and napkins) and

professional (a wide range of

tissue paper hygiene products).

Integrated Management

System (IMS): set of

voluntary commitments

in the business ethics

field, as well as

economic,

environmental and

social responsibility

Pulp & Paper

Main Entities

Industry

Association

– PULP &

PAPER

www.celpa.pt

Technology

and R&D

www.recipac.pt www.afcal.pt

www.apigraf.pt www.anipc.pt

www.aiff.org.pt: The Association for the

Competitiveness of the forest industry. It

supports R&D in several fields.

www.anarepre.pt

aicep Portugal Global

We are a Business Development Agency, focused on

the development of a competitive business

environment that contributes to the international

expansion of the Portuguese Economy.

Who are we?

Increasing the country’s competitiveness,

promoting large private investment and fostering

the internationalization of Portuguese companies. Mission

Values

Focus on clients. We serve our clients in accordance to their requirements

through various solutions and long-term relationships.

Selectiveness. We direct our activity towards projects and markets that

make a better contribution to company competitiveness and the

sustainability of the Portuguese economy.

Excellence. We seek to exceed expectations by means of a rigorous

approach, effectiveness, enthusiasm and a willingness to innovate.

aicep Portugal Global

About Us

aicep Portugal Global: how can we help

you?

1

Pre- Investment

2

Incentives

Negotiation

3

Settling In

4

After Care

Promoting a direct negotiation

with companies, through which a

tailored approach to incentives

may be applied in order to define

a global package that fully

satisfies the investor's needs

Single point of contact

in all phases: pre-

investment, incentives

negotiation, settling in

and after care

Government

business entity,

flexible, free of

charges and

streamlined services

Dynamic

approach

focused on the

client or investor

www.portugalglobal.pt