Volume 3, Number 6
Dec 1990

The Paper Industry in Europe

• The economic condition of the paper industry in eastern European countries, and opportunities for investment there, are described in a two-page article in the October Tappi Journal, p. 36 & 38. It presents the experience and advice of Pekka Serviö of Helsinki, Finland. He says Poland is stabilizing, Czechoslovakia now permits 100% foreign ownership of companies, and there are about 1000 joint ventures in Hungary, but Russian bureaucracy was a quicksand (not his word). It would be a good idea for anyone who wanted to approach eastern Europe to join forces with companies used to dealing with those countries, e.g. West Germany EM Finland, so as to avoid getting burned.
• In the same issue, on p. 80, David Clark (Executive Director, European Paper Institute, Paris) compares the use of fillers in Europe and the U.S. In Europe, high-quality chalk limestone or ground marble is widely available, whereas in the United States, high quality kaolin has historically been preferred and available. It still makes up 60% of the filler market here. Precipitated calcium carbonate now has a slight edge on ground calcium carbonate here, but it is used hardly at all in Europe.
• International Paper's expansion into Europe is described in the August 25 Economist on p. 59-60. IP is said to expert a greater expansion of the paper market there than in this country in future years, and it also wants access to European technology, which is ahead of ours. It is pursuing a policy of friendly acquisition, by which in the last 18 months it has bought Zanders Feinpapiere (coated papers), Aussedat-Rey (copy papers) and Ilford (black-and-white photographic paper).