Shandong Bohui Paper Industry reported nine-month net profit of USD 14.566m (CNY 97.158m), down 20% from USD 18.211m (CNY 121.466m) a year earlier. Revenue for the period fell 1.0% to USD 2.145bn (CNY 14.305bn) from USD 2.166bn (CNY 14.450bn).
Why this mattersA near-flat top line with a sharper profit decline points to margin pressure at Bohui, whose nine-month revenue exceeds USD 2bn.
- Nine-month net profit USD 14.566m (CNY 97.158m), down from USD 18.211m (CNY 121.466m) a year earlier
- Revenue fell 1.0% to USD 2.145bn (CNY 14.305bn) from USD 2.166bn (CNY 14.450bn)
- Earnings per share USD 0.0109 (CNY 0.0727) against USD 0.0147 (CNY 0.0982) a year earlier
- The company is listed in Shanghai under ticker 600966.SS
- Q3 2026 net profit attributable to shareholders fell 36.10% year on year to RMB 20.09m; total profit fell 51.70% to RMB 23.53m
- Nine-month net operating cash flow fell 38.45% to RMB 1.40bn as cash paid for purchases rose to RMB 10.86bn from RMB 9.75bn
- Short-term borrowings rose to RMB 6.43bn and notes payable to RMB 3.09bn at period end, from RMB 5.92bn and RMB 1.85bn at the prior year-end
- Controlling shareholder Shandong Bohui Group (28.84% stake) and Ningbo Jinjiayuan Paper (20.00% stake) have pledged 215.8m and 184.0m shares respectively
- Mainstream 250-300g white board paper averaged USD 597.6/tonne (CNY 3,976.11/tonne) in Q3, falling to a year-low USD 577.0/tonne (CNY 3,839/tonne) by late September
- Nine Dragons Paper, Bohui Paper and Asia Pulp & Paper (China) raised white board paper prices by USD 30.1/tonne (CNY 200/tonne) in October
- Bohui is expanding chemical and mechanical pulping capacity to cut reliance on purchased market pulp
The Singapore Environment Council has required Asia Pulp & Paper to report daily on hotspots, fire prevention and firefighting from 21 October 2026, with no end date set, after fires on the concessions of three of its Indonesian suppliers. The council, which administers Singapore's green-label scheme, can suspend APP's pulp-and-paper certification, held since May 2019, if the company cannot show that its fire monitoring, prevention and suppression measures are working.
Why this mattersSuspension would remove the green-label logo from affected APP products in Singapore, where retailer FairPrice removed APP-linked products during the 2015 haze.
- Singapore Environment Council imposed fire-reporting restrictions on Asia Pulp & Paper on 18 October 2026
- APP must report daily on hotspots, prevention and firefighting from 21 October 2026, with no stated end date
- The suppliers are PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT Sebangun Bumi Andalas Wood Industries (PT SBA Wood Industries)
- Singapore's National Environment Agency said smoke from fires on the suppliers' concessions could have reached Singapore, and plans to notify three more Indonesian firms
- APP received enhanced pulp-and-paper green-label certification from the council in May 2019
- Sustainability and Environment Minister Grace Fu confirmed the SGLS+ restrictions on APP and said Singapore is pursuing cross-border haze investigations.
- APP must file daily fire-response reports, beyond earlier hotspot and prevention reporting, for Bumi Mekar Hijau, Bumi Andalas Permai and Sebangun Bumi Andalas Wood Industries.
- Singapore's National Environment Agency has issued preventive notices to ten Indonesian companies in total, four identified as APP suppliers including Buana Megatama Jaya.
Singapore's National Environment Agency issued preventive measure notices on 16 October 2026 under the Transboundary Haze Pollution Act to seven Sumatra-based companies over land and forest fires; three are wood suppliers to Asia Pulp & Paper, part of Sinar Mas Group. The notices require the firms to put out fires, stop any burning and submit fire-prevention plans; a lawyer quoted in coverage noted they do not establish a breach of the law. APP said it has contacted the suppliers and will support their full cooperation with the agency.
Why this mattersUpstream fire enforcement against Asia Pulp & Paper's wood suppliers renews cross-border regulatory and reputational pressure on Sinar Mas Group's fibre supply chain.
- Singapore's National Environment Agency issued preventive measure notices on 16 October 2026 to seven Sumatra-based companies under the Transboundary Haze Pollution Act
- Three of the seven, PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT SBA Wood Industries, supply wood to Asia Pulp & Paper, part of Sinar Mas Group
- PT Bumi Andalas Permai's plantation covers about 190,415 hectares and PT Bumi Mekar Hijau's about 249,650 hectares, both in Ogan Komering Ilir Regency
- The same three received similar notices over the 2015 haze, and investigations from that episode are still ongoing
- APP said its supply partners must follow a zero-burning policy and that it will support the suppliers' cooperation with the agency
- Singapore's 24-hour PSI was forecast at 150 to 230 on 17 October 2026
- The Singapore Environment Council issued Asia Pulp & Paper a notice of temporary SGLS+ certification restrictions on 18 October 2026.
- APP must submit daily fire response reports for concessions held by PT Bumi Mekar Hijau, PT Bumi Andalas Permai and PT SBA Wood Industries.
- A further three Indonesian firms were served Preventive Measure Notices on 19 October 2026, bringing the total to ten.
- The SEC may suspend APP's SGLS+ certificate if fire prevention and monitoring are not demonstrated as effective.
- NEA issued notices under the Transboundary Haze Pollution Act to 10 Indonesian plantation firms on 20 October 2026, four confirmed as Asia Pulp & Paper suppliers and a fifth possibly linked.
- Three of the ten firms are repeat offenders also notified over the 2015 haze episode.
- Fines under the Act can reach SGD 100,000 a day, capped at SGD 2m per case.
- Asia Pulp & Paper says it has invested USD 300m in fire management since 2015 and maintains a zero-burning policy.
- NEA issued notices under Section 10 of the Transboundary Haze Pollution Act to 10 Singapore-registered companies on 23 October 2026, including Asia Pulp & Paper Company Limited and Asia Pulp & Paper Company (China) Limited.
- NEA separately issued Section 9 Preventive Measure Notices to 10 Indonesian companies: 7 in Sumatra (16 October) and 3 in Kalimantan (19 October) over fires.
- The notices request corporate-link details, concession locations and fire-prevention and firefighting measures.
- Asia Pulp & Paper confirmed receipt of the notices and said it is cooperating with authorities.
Asia Pulp & Paper and CVC Capital Partners are separately weighing bids for Essity's consumer tissue division, with RGE also named as a potential bidder, Bloomberg reported citing people familiar with the process. The business, which includes the Cushelle, Tempo and Tork brands, could be valued at around EUR 3bn (USD 3.4bn), and a sale process is expected to start this month. Essity says its strategic review remains open and it may decide not to divest.
Why this mattersA sale would transfer the Cushelle, Tempo and Tork brands from Essity to an Asian pulp and paper group or a financial sponsor, changing ownership of a major European tissue portfolio.
- Asia Pulp & Paper and CVC Capital Partners are separately considering bids for Essity's consumer tissue division, according to Bloomberg sources
- RGE is also named as a potential bidder
- The tissue business, including the Cushelle, Tempo and Tork brands, could be valued at around EUR 3bn (USD 3.4bn)
- The sale process is expected to start this month
- Essity says its strategic review remains open, including the possibility of not divesting
- Essity launched the strategic review of Consumer Tissue in May 2026, flagging possible separation
- Consumer Tissue generated SEK 43,537m net sales in 2025, 31% of group sales
- The division's 2025 EBITA excluding items affecting comparability was SEK 5,187m, an 11.9% margin
- Consumer Tissue employs about 13,000 people across 29 production facilities, with brands including Lotus, Tempo, Zewa, Cushelle, Plenty, Regio and Familia
PT Indah Kiat Pulp & Paper, a Sinar Mas Group unit, has outlined IDR 3.50 trillion of new bonds, sukuk and dollar notes to refinance debt maturing in November 2026. The package comprises IDR 2.00 trillion of bonds, IDR 1.50 trillion of sukuk and USD 13.76 million of dollar bonds, against IDR 1.043 trillion plus USD 900,000 of obligations due on 21 and 22 November 2026. The company reported first-half 2026 sales of USD 1.70 billion, up 8.74 percent year on year, and net income of USD 372.00 million, more than double the prior-year period.
Why this mattersA refinancing package larger than the November maturities it replaces gives the Sinar Mas pulp and paper unit room to roll debt rather than repay from operating cash.
- New debt instruments total IDR 3.50 trillion: IDR 2.00 trillion bonds, IDR 1.50 trillion sukuk, USD 13.76 million dollar bonds.
- November maturities comprise IDR 739.72 billion bonds and IDR 303.56 billion sukuk due 21 November 2026, plus USD 900,000 dollar bonds due 22 November 2026.
- First-half 2026 sales reached USD 1.70 billion, up 8.74 percent year on year.
- First-half 2026 net income reached USD 372.00 million, up 127.43 percent year on year.
- Indah Kiat is listed on the Indonesia Stock Exchange under ticker INKP, with market capitalisation of IDR 45.5 trillion as of 13 October 2026.
- Indah Kiat is a unit of Sinar Mas Group.
Asia Symbol (Shandong) Pulp and Paper is completing the second phase of its tissue project, which adds 150,000 tonnes a year of capacity for facial tissue, toilet paper and kitchen paper sold under the Vinda brand. The TM35 and TM36 machines are in the final stage of installation and two soft-pack converting lines are in commissioning. The first line is due to start up in November 2026, with all lines at full production in the first half of 2027.
Why this mattersA 150,000-tonne addition at a single Shandong site raises branded converted-tissue supply in China at a time of already heavy domestic capacity growth.
- Phase two at Asia Symbol (Shandong) Pulp and Paper adds 150,000 tonnes a year of tissue capacity.
- Output will be sold as facial tissue, toilet paper and kitchen paper under the Vinda brand.
- TM35 and TM36 are in the final stage of installation; two soft-pack converting lines are in commissioning and testing.
- More than 550 construction workers are on site.
- The first production line is expected to start up in November 2026.
- All lines are targeted to reach full production in the first half of 2027.
Shandong Bohui Paper, the sole A-share listed unit of Sinar Mas Group's APP (China) business, has begun operating Zibo city's first domestic-transfer export supervision warehouse after customs acceptance. The facility, the first of its kind under Jinan customs jurisdiction, is expected to save the company CNY 1.8m (USD 0.27m) a year by replacing a bonded-zone transfer process that previously risked holiday-season delays.
Why this mattersA streamlined customs transfer process cuts logistics cost and delivery risk for a major Chinese paper exporter serving more than 90 countries.
- The warehouse passed customs acceptance and began operation in early October 2026
- It is Zibo city's first domestic-transfer-type export supervision warehouse and the first under Jinan customs jurisdiction
- Bohui Paper is the sole A-share listed company under Sinar Mas Group's APP (China) unit, with annual capacity of nearly 5 million tonnes
- The company exports paper products to more than 90 countries and regions
- Expected savings are CNY 1.8m (USD 0.27m) a year versus the previous bonded-zone round-trip transfer process
- The prior process required a same-day bonded-zone round trip, raising costs and risking holiday-season customs delays
Asia Pulp & Paper Group (APP Group), part of Sinar Mas, has joined RE100, the global renewable electricity initiative led by The Climate Group and CDP, becoming the first Indonesian company to do so. The commitment sits within its Sustainability Roadmap Vision 2030, which targets a 30% cut in carbon intensity from a 2018 baseline. Membership was marked at the Indonesia International Sustainability Forum in Jakarta on 6 October 2026.
Why this mattersA first Indonesian RE100 member signals pressure on the country's pulp and paper sector to source renewable power as buyers tighten scope 2 emissions scrutiny.
- APP Group is the first Indonesian company to join RE100
- RE100, led by The Climate Group with CDP, has more than 440 member companies globally
- APP Group's Sustainability Roadmap Vision 2030 targets a 30% cut in carbon intensity from a 2018 baseline
- Membership was marked at the Indonesia International Sustainability Forum in Jakarta on 6 October 2026
- The commitment is part of APP Group's Regenesis sustainability platform
Suzano is attempting a further pulp price increase in October, targeting USD 600 per tonne for short-fibre pulp in China, after successfully pushing through a rise in September, according to a BTG Pactual note following meetings with Suzano executives in New York. The bank cites lower port inventories, delays to Asia Pulp and Paper's OKI II project and about 1.3 million tonnes of permanent long-fibre capacity closures as supporting near-term prices, but Suzano itself warned that new supply due in 2027, including Arauco's 3.5 million tonne Sucuriu plant and the delayed 1.4 million tonne OKI II project, could outpace demand growth of only 1-1.5 million tonnes a year and push prices lower again. Suzano said it is prioritising debt reduction and integration of its Kimberly-Clark joint venture over new capacity investment, expecting leverage to peak in the third quarter of 2026.
Why this mattersBuyers face higher pulp costs now, while 2027 capacity additions far exceed structural demand growth of 1-1.5m tonnes a year.
- Suzano is targeting USD 600 per tonne for short-fibre pulp in China in the October price round, after implementing a September rise, per BTG Pactual.
- Arauco's Sucuriu plant in Mato Grosso do Sul is expected to start in H2 2027 with capacity of 3.5 million tonnes of pulp a year.
- Asia Pulp and Paper's OKI II project, delayed to 2027, is expected to add a further 1.4 million tonnes of capacity.
- About 1.3 million tonnes of long-fibre pulp capacity have been permanently closed, supporting the recent price recovery.
- Structural pulp demand growth is estimated at only 1-1.5 million tonnes a year, below planned new supply.
- Suzano expects its leverage to peak in the third quarter of 2026 after completing its Kimberly-Clark transaction, and is prioritising debt reduction over new capacity.
- Hardwood pulp price increase of USD 50 per tonne in the Americas and Europe and USD 20 per tonne in Asia, effective 24 September 2026
- Net debt target lowered to USD 11bn from USD 12bn as of 22 September 2026
- 2026 capital expenditure plan set at USD 2.1bn
- Q2 2026 revenue of BRL 11.59bn and net income of BRL 1.81bn, with adjusted EBITDA of BRL 4.2bn at a 48% margin on pulp sales of 2.9m tonnes
Leading Chinese white-back duplex board producers, including Nine Dragons Paper, Bohui Paper and APP China, issued notices in early October 2026 raising prices by USD 30/tonne (CNY 200/tonne), tax included, effective 1 October 2026. Jiangsu Asia Symbol Paper, Zhangzhou Lian Sheng Pulp & Paper and Wanguo Paper Sun's white board unit followed with matching increases, citing higher coal, wood chip and logistics costs that had pushed market prices below the value of the product.
Why this mattersA coordinated increase across the main duplex board mills signals input-cost inflation is being passed on, raising board costs for Chinese converters and brand owners.
- Price rise of USD 30/tonne (CNY 200/tonne), tax included, effective 1 October 2026
- Nine Dragons Paper, Bohui Paper and APP China issued the increase notices
- Jiangsu Asia Symbol Paper, Zhangzhou Lian Sheng Pulp & Paper and Wanguo Paper Sun's white board unit followed with increases of the same size
- The increase covers all white board grades of the producers concerned
- Producers cite rising coal, wood chip and logistics costs as the reason for the rise
- Nine Dragons Paper raised corrugated kraftliner prices by a further CNY 50/tonne (USD 7.5/tonne) at several mills after the October holiday, matched by producers in Shanxi and Henan.
- Benchmark whitecard price stood at CNY 4,040/tonne (USD 603.7/tonne) and corrugated base paper at CNY 3,055/tonne (USD 456.5/tonne) as of 8 October, unchanged from the start of the month.
- Integrated producer Sun Paper posted a 15.66% H1 gross margin, while containerboard-focused Shanying International lost CNY 700m (USD 104.6m) with a 4.55% margin.
- Corrugated paper average price reached CNY 3,083/tonne (USD 460.7/tonne) in late September, up about CNY 376/tonne (USD 56.2/tonne) since late April and nearly 10% year on year.
- Bohui Paper's H1 net profit fell to about CNY 77m (USD 11.5m) on revenue of CNY 9.454bn (USD 1,413m).
- As of 8 October, benchmark folding boxboard stood at USD 604/tonne (RMB 4,040/tonne) and corrugated base paper at USD 457/tonne (RMB 3,055/tonne), both flat versus the start of the month
- Hardwood pulp benchmark price reached USD 687/tonne (RMB 4,600/tonne) on 7 October, with waste paper also near a one-year high
- China's paper and paper-products industry profit rose 23.6% year-on-year in the first eight months of 2026
- Sun Paper posted H1 revenue of USD 3.118bn (RMB 20.862bn) and net profit of USD 292.6m (RMB 1.958bn) at a 15.66% gross margin, while Shanying International lost USD 104.6m (RMB 700m) at a 4.55% margin and Bohui Paper's net profit fell to about USD 11.5m (RMB 77m)
- Nine Dragons Paper's kraftliner price rise of CNY 50/tonne (USD 7.5/tonne) took effect at its Dongguan and Tianjin mills from 13 October 2026.
- China's white board benchmark price fell to CNY 4,006.67/tonne (USD 598.7/tonne) by 12 October 2026, the lowest in a year and down 7% year on year.
- Hardwood pulp price rose 9.41% year on year to CNY 4,650/tonne (USD 694.8/tonne), while softwood pulp fell 13.4% to CNY 4,806.67/tonne (USD 718.2/tonne).
- China's paper and paper-products sector revenue rose 5% year on year to CNY 922.97bn (USD 137.9bn) in January-August 2026, with profit up 23.6% to CNY 24.7bn (USD 3.69bn).
- Nine Dragons Paper raised kraftliner prices by CNY 50 per tonne (USD 7.5) at Dongguan and Tianjin from 13 October 2026.
- Benchmark white board paper price fell to CNY 4,006.67 per tonne (USD 598.7) on 12 October 2026, down 0.82 percent month to date and 7 percent year on year, the lowest in a year.
- Hardwood pulp price rose 9.41 percent year on year to CNY 4,650 per tonne (USD 694.7); softwood pulp fell 13.4 percent to CNY 4,806.67 per tonne (USD 718.0).
- China's paper and paper products industry revenue rose 5 percent year on year to CNY 922.97bn (USD 137.9bn) in January to August 2026, with profit up 23.6 percent to CNY 24.7bn (USD 3.7bn).
Six Chinese paperboard producers - Nine Dragons Paper, APP China, Jiangsu Asia Symbol, Zhangzhou Lian Sheng, Bohui Paper and the Wanguo Sun white cardboard business - have issued price-increase letters raising white cardboard by USD 30/t (CNY 200/t). Most increases take effect on 1 October 2026, with the Wanguo Sun brands moving first on 26 September. The letters follow earlier rounds of increases in corrugating medium and containerboard.
Why this mattersA uniform USD 30/t rise across most of China's white cardboard capacity lifts input costs for folding carton and foodservice converters and signals tighter board supply.
- Nine Dragons Paper raises all white cardboard grades, including coated and food-grade board, by USD 30/t (CNY 200/t) from 1 October 2026.
- APP China raises white cardboard prices by USD 30/t (CNY 200/t), tax included, from 1 October 2026 on top of September levels.
- Jiangsu Asia Symbol raises its cardboard and food-grade board brands by USD 30/t (CNY 200/t), tax included, from 1 October 2026.
- Bohui Paper raises prices by USD 30/t (CNY 200/t), tax included, from 1 October 2026.
- Zhangzhou Lian Sheng Pulp & Paper raises its Lanye coated white cardboard by USD 30/t (CNY 200/t) from 1 October 2026.
- Wanguo Sun white, coated and food-grade cardboard grades rise USD 30/t (CNY 200/t) from 26 September 2026.
- Zhangzhou Lian Sheng cited frequent market fluctuations and sustained high production costs as reasons for the increase
- China's main pulp futures contract (2611) closed at RMB 4,828/tonne on 28 September 2026, down RMB 76/tonne from the prior session
- Mid-September average price for 250g-400g sheet white cardboard had fallen to CNY 3,849/tonne (USD 574/tonne), roll products to CNY 3,410/tonne (USD 509/tonne), below production cost for non-integrated mills
- Nine Dragons Paper also raised kraftliner prices by CNY 50/tonne (USD 7.5/tonne) at its Dongguan, Tianjin, Shenyang and Beihai mills after the holiday
- China's paper and paper products industry posted CNY 922.97bn (USD 137.67bn) revenue and CNY 24.70bn (USD 3.68bn) profit in the first eight months of 2026, up 5.0% and 23.6% year on year
- Mid-September average price for 250-400g sheet white cardboard had fallen to CNY 3849/tonne (about USD 574), roll stock to CNY 3410/tonne (about USD 509)
- Producers cite rising coal, wood-chip and logistics costs pushing market prices below production cost
- Analyst Kong Xiangfen of Sublime China Info attributes the slump to overcapacity against weak demand and expects only a tentative CNY 50/tonne rebound after the National Day holiday
- Industry theoretical margins on white cardboard are negative; only pulp-and-paper integrated producers remain profitable
- Mid-September average white cardboard prices stood at RMB 3,849 (USD 541) per tonne for sheet stock and RMB 3,410 (USD 479) per tonne for reel stock, levels producers say leave the sector loss-making except for forest-pulp-paper integrated players
- China's paper and paper products sector revenue rose 5 percent to RMB 922.9bn (USD 129.7bn) in the first eight months of 2026, with profit up 23.6 percent to RMB 24.7bn (USD 3.47bn), per National Bureau of Statistics data
- Zhangzhou Lian Sheng's integrated forestry-pulp-paper project, a total investment of RMB 22bn (USD 3.09bn), has its first phase fully operational with planned capacity of 3.9m tonnes
- Lian Sheng cut pulp raw material costs by 15 percent by substituting mixed wood chips for eucalyptus, while raising paper strength by 8 percent
- Nine Dragons Paper added a further USD 7 per tonne increase on kraft linerboard after its initial white cardboard rise
- Containerboard and white cardboard prices fell more than 3 percent month-on-month in the week of 29 September to 5 October despite the announced increases
- Market participants expect mills to achieve only around USD 7 per tonne of the full USD 30 per tonne announced rise
- Sales of gift boxes priced above CNY 1000 fell about 76 percent year on year over the holiday period, with liquor sell-through down about 10 percent
Suzano will raise pulp prices by USD 50 per tonne in Europe and the Americas from October 2026, with a smaller rise of USD 20 per tonne in Asia, according to media reports. The Brazilian producer disclosed no volume or contract detail.
Why this mattersHigher pulp costs feed through to fibre-based packaging producers' input costs, pressuring margins or prompting further price rises downstream.
- Pulp prices rise by USD 50 per tonne in Europe and the Americas from October 2026.
- Pulp prices rise by USD 20 per tonne in Asia from October 2026.
- The increases were reported on 22 September 2026.
- European short-fibre pulp reference price to reach USD 1,360 per tonne from October
- Asia pulp price range to reach USD 590-600 per tonne from October
- Previous Americas/Europe increase of USD 50 per tonne took effect in May 2026
- Previous Asia increase of USD 20 per tonne was announced less than a month before this one
- The USD 20 per tonne Asian pulp price rise taking effect in October is the second such increase in under a month
- Suzano is described as the world's largest producer of eucalyptus short-fibre pulp
- Suzano's September 2026 Asian increase of USD 20 a tonne was its first Asian rise since April 2026
- UBS BB sees a market floor near USD 550 a tonne in China, with a possible new range of USD 580-590 a tonne
- Suzano reported adjusted EBITDA of BRL 4.7bn (USD 910m) for the second quarter of 2026
- Indonesia revoked environmental licences from some pulp producers and Asia Pulp & Paper delayed its OKI 2 project, limiting new supply
Indah Kiat Pulp & Paper, the pulp and paper unit of Sinar Mas Group, has confirmed it will repay three maturing debt instruments on 21-22 November 2026 totalling about IDR 1.04 trillion plus USD 900,000. The company says the repayment will be funded from proceeds of a bond issuance it carried out earlier in 2026.
Why this mattersThe refinancing shows continued market access for Sinar Mas Group's pulp and paper arm to roll maturing debt via fresh issuance.
- Sustainable Bond IV Phase III 2023 Series B, IDR 739.72bn principal at 10.25% coupon, due 21 November 2026
- Sustainable Mudharabah Sukuk III Phase III 2023 Series B, IDR 303.56bn principal at around 10.25% profit-sharing rate, due 21 November 2026
- Sustainable USD Bond I Phase II 2023 Series B, USD 900,000 principal at 7% coupon, due 22 November 2026
- Combined rupiah-denominated principal due totals IDR 1.043 trillion
- Repayment to be funded from proceeds of a bond issuance carried out earlier in 2026
- Disclosure made in an information filing dated 29 September 2026
A peer-reviewed study of 2015-2022 traceability data finds that 71.45% of recorded deforestation across concessions held by Indonesia's three dominant pulp exporters falls outside the classification used to attribute deforestation directly to wood-pulp production. The exporters covered are Sinar Mas, APRIL (Royal Golden Eagle) and trading house Marubeni, which together control about 96% of Indonesia's pulp capacity. The authors say the gap could raise evidentiary burdens for these groups under the EU Deforestation Regulation.
Why this mattersWider due-diligence gaps in pulp sourcing raise compliance risk under the EU Deforestation Regulation for paper and fibre packaging buyers reliant on Indonesian pulp.
- Sinar Mas, APRIL and Marubeni together control approximately 96% of Indonesia's pulp production capacity and exported 37.19 million tonnes of pulp worth USD 19.69bn between 2015 and 2022.
- Of 359,900 hectares of recorded annual deforestation across traced concessions, only 28.55% (102,765 hectares) was classified as directly linked to wood-pulp production, leaving 71.45% (257,135 hectares) as unclassified 'shadow risk'.
- Sinar Mas exported 18.44 million tonnes (USD 10.30bn) of pulp with 41,697 hectares of deforestation exposure and about 556.7 million tonnes of CO2-equivalent in concession-related emissions.
- APRIL exported 15.89 million tonnes (USD 7.86bn) with 34,464 hectares of deforestation exposure and 133.9 million tonnes of CO2-equivalent in emissions.
- Sinar Mas's emissions intensity was 30.19 tonnes of CO2-equivalent per tonne of pulp, above the sector benchmark of 22.23, versus 8.43 for APRIL.
- Marubeni, exporting 2.86 million tonnes, showed no recorded deforestation exposure or concession-related emissions within the study's analytical boundary.
