Is the paper industry in

Paper industry in South Africa

As a significant player in the South African economy within the manufacturing sector; the forestry, pulp, paper and packaging industry has unique opportunities. There are however some significant challenges that exist, and given our involvement with many of the key players involved in these businesses and our ability to tap into expertise across the global Deloitte network, we are able to assist industry players to deal with their challenging issues.

We continually monitor industry trends across the subsectors:

Forestry -The forestry industry in South Africa is a leader in sustainable forestry management. With the favourable climate and availability of land, forestry operations are capable of good timber yield with high rotation rates. Sustainable forests have been developed to service the building, furniture and packaging industry and provide fibre for the pulp and paper industry in South Africa.

Pulp and paper - With the availability of wood fibre, the South African pulp and paper business has developed into a sizeable business in the economy. However, as our economy has opened up over the past 15 years and labour and power costs have been increasing, there are major challenges that have beset the pulp and paper mills in South Africa.

Packaging - While wood and paper have always been a major source of raw material for the packaging industry, metal, glass and plastic also play a significant role in the packaging manufacturing sector. With this variety in packaging materials, the packaging industry becomes the forward integrator for many of the core product producers.

Source: www2.deloitte.com
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