LIGHTWEIGHTING ~ WHAT CUSTOMERS WANT

Atul Kaul, Director Pulp & Paper, Arab Paper Manufacturing Co. (WARAQ), Saudi Arabia

INTRODUCTION - WARAQ

PM I Startup 1996 PM II Startup 2004 ARC Incorporated 2011 PM III Startup 2013 Grades: Linerboard. Linerboard Capacity, 210,000/MT/Y Employees Over 500 Employees,

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INTRODUCTION - WARAQ WARAQS S PHILOSOPHY

g for g p Aiming global footprint Investing in resource development Meeting stakeholders expectation Enhancing shareholders value Customer-centric Organization Consistent Supply of Quality Products Proactive technical customer support Exceeding customer expectations Focusing on Paper Industry CSR & Green Initiatives
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OUR PRODUCTS

High Performance Fluting Wet Strength Fluting Test Liner Kraft Liner WhiteTop Whit T Liner Li Saturating Kraft Unbleached Coreboard
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GSM Range ~ 80 to 300

INTRODUCTION - MENA OVERVIEW

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TOP PAPER AND BOARD PRODUCERS IN MIDDLE EAST*

MEPCO (Saudi Arabia) Waraq (Saudi Arabia) Hadera Paper (Israel Ob ik (Saudi Obeikan (S di A Arabia) bi ) Saudi Paper Manufacturing (Saudi Arabia) Union Paper Mills (UAE) Gulf Paper Manufacturing (Kuwait / UAE) Jordan Paper and Cardboard Factories (Jordan)
Containerboard Cartonboard

N Nuqul l (J (Jordan) d )
Pr & Wr Tissue

Abu Dhabi National Industrial Projects

0
Source: POYRY

100

200 300 400 500 capacity, 1000 tons/a

600

700

*EXCL. TURKEY AND EGYPT

WORLD DEMAND FOR PAPER AND BOARD 1990-2020

500 450 400 350 300 250 200 150 100

Million tons

Forecast

Other Latin America Rest of Asia Emerging markets CAGR C G 3.6%/a

China Eastern Europe Japan Western Europe

50
North America

Mature markets CAGR -0.6%/a

0 1995
Source: POYRY

2000

2005

2010

2015

2020
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RECOVERED PAPER COLLECTION & CONSUMPTION BY REGION

Global recovered paper collection has been growing from 117 million tons in to 216 million tons by the year 2010. 2010 Developed regions represent nearly 60% of the global recovered paper collection. Global recovered paper consumption has grown from 117 million tons in 1995 to 216 million tons in 2010. 2010 Emerging markets represent over 55% of the global recovered paper consumption.

Source: POYRY

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LONG-TERM LONG TERM DEMAND GROWTH BY REGION 2010 2010-2020 2020

Source: POYRY

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LONG TERM DEMAND GROWTH BY PRODUCT AREA

Demand growth, %/a 4 3

Average 1.8%/a
India Tissue Containerboard Cartonboard

2010-2020

2 1 0 -1 -2 0 20
Newsprint Sack C t dM Coated Mechanical h i l Uncoated Mechanical Uncoated Woodfree Coated Woodfree Other Grades

Highest demand growth in packaging grades based on RP

40 60 80 100 Share of consumption in 2010, %

10

Source: POYRY

10

RECOVERED PAPER WORLD BALANCE 2010

North America and Western Europe are the main exporters. China has the biggest deficit. de ct
North America Western Europe Japan O Oceania Eastern Europe Africa -0.003 -0.162 -2.07 -7.93 7.85 4.33 1.49 0.555 18.8

Middle East
Latin America Rest of Asia China -23.8 -30 -20

-10

10

20

30

Source: POYRY

Million tons
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FROM BROWN BOX TO POS DISPLAY

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LIGHTWEIGHTING
g and papermaking g Innovations in fiber processing technology led to true lightweight grades to be introduced. Today y approximately pp y 40% of all Recycled y Containerboard capacities in Europe is already truly lightweight (100 GSM and less).

One of the most interesting technological developments over the past years has been the development p and use of lighter g weight g liners and few y flutings. Improved papermaking technologies have ensured that the overall structural properties of the corrugated container can be maintainedto produce economic and environmental benefits. ..Pira International
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PAPER/BOX CHALLENGES IN LIGHTWEIGHTING

Reduce Fiber Requirement. Use Double Wall instead of Single Wall to achieve strength. Adjust flute type and combinations to get desired strength. This will result in better finishing g and better p printability. y Smarter display product at POS.

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ON THE CORRUGATOR ~ LESS IS MORE

/ Less g glue/starch Less heat Less tension More productivity Faster running speeds Improved quality

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RULE 41 ~ IS IT RELEVANT ANYMORE

When the industry adopted the alternate certification standard for Rule 41 more than twenty years ago it was a landmark event for the linerboard industry. Focus shifted for box construction from weight of components to a combined bi d board b d performance. f The linerboard from one mill/machine can be stronger than that of f another mill is a serious concern. The standardization is thus board performance and not grade specifications. Proliferation of new, lighter weight grades and the introduction of ring crush specifications as a measure of the boards strength.
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SHORT SPAN COMPRESSION TEST

Ring Crush Test and Short Span Compression Test both measure the stiffness of linerboard. linerboard In the west RCT is less in vogue for quite some time now. SCT is a much better indicator of ECT which ultimately is a better indicator of BCT (Box Compression Test) which demonstrates the stack ability of cartons.

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SUSTAINABILITY REASON TO SUCCEED

Corporate CSR initiatives make sustainability a key

factor to recon with when it comes to supply chain. chain to a economic product prod ct to producer prod cer and consumer. cons mer producers designing their product. cost strategies and campaigns.
includes reducing raw material consumption and employing lean manufacturing and efficient processes.

Cost of Raw Material and efficient production leads Packaging cost is always a major concern for

Clean and Green is the common theme which

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THANK YOU,,,

Atul Kaul Director Pulp & Paper Arab Paper Manufacturing Co. Atul.kaul@waraq.com

www.waraq.com