RISI

The PPI Top 100 - M&As create a stir

By Graeme Rodden Sun, Sep 09, 2012
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BRUSSELS, Sept. 10, 2012 (RISI) -Few surprises mark this year's Top 100 results, which has been the case for many years. International Paper (IP) continues to be ranked at the top with sales of pulp, paper, converting and merchanting (PPCM) operations reaching more than $26 billion in 2011.

Ranked by PPCM sales, IP continues to be in a class by itself in the industry, more than $10 billion ahead of Procter & Gamble (P&G). P&G, maker of many famous consumer brands, far outpaces IP in consolidated sales. But, sales of laundry detergent don't count in these rankings.

Looking at consolidated sales, Japanese giant Marubeni is alone at the top with $132 billion although only $6.5 billion come from the paper side of its operations, putting it at No. 13 in 2012, a drop of one place compared with 2011.

There was a significant move in the top five as SCA jumped into the Number 3 slot, thanks to some acquisitions. It was Number 6 in the 2011 rankings. As a whole, the Top 10 companies did not change year over year.

Another big mover was RockTenn, now that the Smurfit-Stone takeover has been finalized. It moved from 29 to 19 in the list, with sales hitting north of the $5 billion mark.

Chinese companies continue their climb up the list. This year there are four in the upper 50 with Hengan cracking the top half for the first time, moving from 54th up to Number 47. Nine Dragons continues to be the largest of the Chinese companies in PPCM sales, with a total of 3.76 billion in 2011, good enough to move the company up eight spots into Number 23.

Newcomers to the list in 2012 are Sofidel at Number 45, Heinzel at 57, Lintec at 98 and Gascogne at 100. Sofidel and Heinzel have both been very busy on the M&A trail over recent years, as well as expanding organically in the areas of tissue and pulp respectively.

The Metsä Group is another newcomer, but only in name; the group is made up of former companies M-real (now Metsä Board), Metsä-Botnia, (now Metsä Fibre) and Metsä Tissue, Metsä Wood and Metsä Forest.

The Million Tonners Club showed a drop in membership to 54 but this was due mainly to mergers.

Compared with 2010, sales increased by about 10%. Market pulp production was up slightly while paper and board production showed a small decline among the companies reporting.

The million tonners´ club
(those companies making more than one million tonnes of paper and board in 2011)
Company 2011 Top
100 Rank
P&B Output
(1,000 tonnes)
International Paper 1 11,769.00
UPM 6 10,615.00
Stora Enso 4 10,330.00
Svenska Cellulosa Aktiebolaget (SCA) 3 8,520.00
Nine Dragons Paper Holdings 23 7,600.00
Sappi 11 6,728.00
Oji Paper 5 6,628.00
Smurfit Kappa Group 8 6,500.00
Nippon Paper 7 5,666.00
Mondi 10 5,371.02
Resolute Forest Products 20 5,019.00
RockTenn 19 4,174.00
NewPage 27 3,954.00
Norske Skog 29 3,825.00
Shandong Chenming Paper Holdings 37 3,614.30
Lee & Man Paper Manufacturing 48 3,539.80
Domtar 16 3,535.00
Siam Cement 51 3,244.00
Marubeni 13 2,950.00
Cascades 24 2,865.40
Daio Paper 18 2,700.00
MWV 14 2,584.00
Burgo Group 32 2,509.00
Packaging Corporation of America 36 2,499.00
Graphic Packaging 22 2,482.90
Shandong Sun Paper Industry 65 2,422.60
DS Smith 33 2,300.00
Metsä Group 12 2,254.00
Boise 38 2,211.00
Holmen 42 2,142.00
Palm 54 1,900.00
Hokuetsu Kishu Paper 31 1,863.65
Rengo 15 1,831.00
Sonoco Products 25 1,800.00
Yuen Foong Yu Paper 50 1,783.00
Klabin 39 1,739.00
Shandong Huatai Paper 66 1,712.00
Cheng Loong 56 1,684.34
Lecta 44 1,656.00
Hansol Paper 60 1,646.00
Verso Paper 52 1,601.00
Portucel Soporcel 49 1,600.00
Prinzhorn Holding 58 1,600.00
Empresas CMPC 21 1,511.00
Mayr-Melnhof Karton 34 1,491.00
Catalyst Paper 63 1,340.70
Suzano Papel e Celulose 30 1,335.00
KapStone Paper & Packaging 78 1,224.00
Bio-PAPPEL 80 1,210.00
Clearwater Paper 46 1,206.00
Shandong Bohui Paper Industry 85 1,163.60
Korsnäs 69 1,120.00
Sequana 17 1,100.00
Billerud 59 1,013.00
Total of 54 companies 176,682.32
See notes accompanying production figures on the Top 100 tables for further details.
Geographic portrait of this year´s top 100
No. of companies1 2011 Sales2($ million) 2010 Sales ($ million) % change 2011/
2010
% of total 2011 Mkt pulp3(1,000 tonnes) % of total 2011 P&B4(1,000 tonnes) % of total 2011
Europe 35 108,956 96,955 12.4 33.9 15,519 35.0 71,664 37.5
North America 30 112,555 104,736 7.5 35.0 12,543 28.3 51,451 26.9
Asia 25 72,054 65,856 9.4 22.4 1,743 3.9 55,506 29.0
Latin America 7 16,801 15,105 11.2 5.2 13,375 30.2 5,888 3.1
Oceania 1 3,547 2,837 25.0 1.1 0 0.0 0 0.0
Africa 2 7,946 7,253 9.6 2.5 1,170 2.6 6,728 3.5
100 321,859 292,743 9.9 100 44,350 100 191,237 100
1. Due to consolidation moves, some companies have been added and deleted from the Top 100. This will affect the regional breakdown compared to previous years. Companies are listed in a particular region according to the location of their headquarters. 2. Sales from pulp, paper, converting and merchanting only. 3: Only companies making and reporting market pulp are included. 4: Only companies making and reporting paper and board are included.
PPI top 100 of 2011 in alphabetical order
Company Rank
Ahlstrom 77
Altri 95
Amcor 26
Appleton 81
Arauco 41
Arctic Paper 82
Billerud 59
BILT - Ballarpur Industries 75
Bio-PAPPEL 80
Boise 38
Buckeye Technologies 79
Burgo Group 32
Canfor 70
Cascades 24
Catalyst Paper 63
Celulose Nipo-Brasileira (CENIBRA) 91
Cheng Loong 56
Chuetsu Pulp and Paper 64
Clearwater Paper 46
Daio Paper 18
De la Rue 90
Domtar 16
Double A 96
DS Smith 33
Empresas CMPC 21
ENCE 84
EUROPAC Papeles y Cartones de Europa 61
Exacompta Clairefontaine 88
Fedrigoni SpA 89
Fibria Celulose 28
Gascogne 100
Glatfelter 53
Graphic Packaging 22
Greif 93
Hansol Paper 60
Heinzel Group 57
Hengan International Group 47
Hokuetsu Kishu Paper 31
Holmen 42
International Paper 1
ITC 83
KapStone Paper & Packaging 78
Kimberly Clark 9
Klabin 39
Koehler 76
Korsnäs 69
Lecta 44
Lee & Man Paper Manufacturing 48
LEIPA Georg Leinfelder 71
Lenzing Group 35
Lintec 98
Marubeni 13
Mayr-Melnhof Karton 34
Mercer International 67
Metsä Group 12
Mitsubishi Paper Mills 40
Mondi 10
Moorim Group 68
MWV 14
Nampak 94
Neenah Paper 92
NewPage 27
Nine Dragons Paper Holdings 23
Nippon Paper 7
Norske Skog 29
Oji Paper 5
Packaging Corporation of America 36
Palm 54
Portucel Soporcel 49
Prinzhorn Holding 58
Procter & Gamble 2
Rayonier 73
Rengo 15
Reno de Medici 99
Resolute Forest Products 20
RockTenn 19
Sappi 11
Sequana 17
Shandong Bohui Paper Industry 85
Shandong Chenming Paper Holdings 37
Shandong Huatai Paper 66
Shandong Sun Paper Industry 65
Siam Cement 51
Smurfit Kappa Group 8
Södra 55
Sofidel 45
Sonoco Products 25
Stora Enso 4
Suzano Papel e Celulose 30
Svenska Cellulosa Aktiebolaget (SCA) 3
SWM 97
Tembec 62
Tokushu Tokai Paper 87
UPM 6
Verso Paper 52
VPK Packaging 74
Wausau Paper 72
West Fraser Timber 86
Weyerhaeuser 43
Yuen Foong Yu Paper 50
Missing in action
Every year there are companies that could be in the Top 100 that are not. This is because these often extremely prominent companies are privately owned and do not make their financial results public. These companies include (but are not restricted to): APP, APRIL, Carter Holt Harvey, Irving, Kruger, Georgia-Pacific, Saica, Visy and Pratt Industries.
Also, for this year’s rankings there is a notable exclusion: Temple-Inland (TI). Although the takeover by IP was not finalized until early this year, no record could be found of TI’s final results for 2011. Results for the first three quarters (through October 1, 2011) showed net revenues of $2.985 billion, which would have put the company in the top 30 (on these three quarters alone). TI was also a perennial member of the Million Tonners Club.

See Related Tables (pdf format):

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