An economics graduate and the author of ‘Sulle decisioni di investimento in un mercato competitivo’ (On investment decisions in a competitive market), Giovanni is among the most renowned names in the plastics sector with over 24 years of experience across diverse functions of the industry.

CEO Insights Asia recently got a chance to interact with Giovanni. He shared insights on various aspects pertaining to the paper manufacturing industry and even shed light on how they are impacting the laminate sector. Read on to know more about this interesting topic –

What are your thoughts on the current paper manufacturing sector in Asia?

Paper and resin are the primary raw materials in manufacturing high pressure laminates. Close to 70 percent of the product is produced using kraft paper and design paper. Currently, the paper manufacturing industry is undergoing a very volatile condition due to the ongoing crisis in Red Sea and Suez Canal, which have greatly disturbed global trade and caused huge delays in supply chains for the paper and laminate manufacturing industries. Also, it is necessary for the kraft paper to be of a certain standard quality to be used in the manufacturing of laminates. However, the paper produced in India is not suitable to be used in laminate manufacturing due to quality related issues. Thus, it is important for the paper manufacturers to enhance the quality of their products to be able to effectively cater to the laminates industry.

What are some of the key emerging trends and use cases that are currently driving the demand for paper manufacturing?

Given the versatile nature of paper, which makes it usable in a wide range of use cases, the demand for high quality paper is increasing in recent times. A major growth driver for the sector has been the packaging industry, which is also seeing an exponential growth lately due to the demand from almost every business vertical. Additionally, the rising disposable income among the population today has resulted in the sale of furniture products to skyrocket. This has been a boon to the paper manufacturing industry as it is a primary raw in making laminates, which are used in the production of

various furniture.

What steps is the industry taking to become more sustainable?

Additionally, the rising concerns surrounding environmental sustainability has led to stringent regulatory frameworks and guidelines being implemented by governments and regulatory bodies worldwide. This also includes the sourcing and traceability of primary raw materials used in paper production such as wood and cellulose which must be done only from sustainable forests. Also, with rising awareness among customers about sustain ability and thus becoming more inclined towards using products that are manufactured in a completely ecofriendly manner have led to a heightened demand for FSC and PEFC (Program for the Endorsement of Forest Certification) certified paper. This has forced the paper manufacturers to strictly adhere to all the prescribed guidelines while sourcing the raw materials for their production process.

Since paper manufacturing is a very capital intense process, companies are now increasingly relying on automation technologies to reduce the need for manpower to the maximum extent possible.

Briefly explain the role of modern-day technologies in the paper manufacturing process.

Additionally, manufacturers are implementing modern-day technologies to come-up with new, innovative ways to reduce the power consumption across the entire production process and even utilizing renewable energy sources to the maximum extent possible in the factories. Since paper manufacturing is a very capital intense process, companies are now increasingly relying on automation technologies such as AI and IoT to reduce the need for manpower to the maximum extent possible.

What does the future hold for the paper manufacturing industry?

The increasing restriction being put-out in terms of usage of plastics worldwide is expected to boost the demand for paper by manifold in the coming days. While the demand is rock solid, the industry is falling behind in terms of maintaining the supply due to the disruptions caused by the ongoing geopolitical crisis worldwide. Thus, going forward, it is important for the paper manufacturing industry to have a global network for both ends of the supply chain - sourcing raw materials and distribution of finished goods.