From APP’s pulp mill to the ends of the Earth

Background - November 26, 2011
The key aim of CITES is to ensure that any international trade in ramin specimens or derivatives is not causing a detrimental impact on the species, and comes from legal supplies. The investigation shows that Indah Kiat Perawang trades pulp to APP paper mills in Indonesia and China. Fibre testing of products linked to these APP mills reveals their use of fibre from natural forest clearance. Products from APP mills are traded globally.

From APP's pulp mill to the ends of the Earth

  • The investigation identified 12 individual APP paper mills[1] run by 9 APP companies in Indonesia and China with trade links to Indah Kiat Perawang. It established the use of MTH pulp or fibre in the supply chains of 8 of these companies. No products with specific links to the 9th company have yet been identified.[2]
  • These 12 APP paper mills trade with as many as 136 countries that are CITES parties.[3]
  • Identified exports of paper, tissue and packaging products from these APP paper mills amount to ~3.1 million tonnes, more than 80% of a total 3.7 million tonnes identified direct trade of such products from APP Indonesia and China.

Overview of APP pulp trade

APP is a global paper giant, trading products containing MTH around the world. The investigation identified trade links from the Indah Kiat Perawang pulp mill to most of APP's main paper mills in Indonesia and China. Products from these mills are then traded by APP and third parties to multiple global industries – from fashion houses to food giants, and including the electronics, cosmetics, footwear, cigarette and toy sectors.

'Headquartered in Indonesia and Shanghai', APP claims to be 'the number three pulp and paper maker in the world'.[4] It aspires to be number one: 'At Asia Pulp & Paper (APP) we have a single, focused mission: To be the world's number one pulp and paper manufacturer and a responsible global leader in all aspects of our business.'[5]

APP is a leading global producer of paper, packaging and tissue products, producing most categories of paper products. APP classifies its production into nine categories:[6] coated paper, printing paper, industrial packaging, office products, tissues, stationery, publishing, and fancy and speciality products.

APP's main pulp production base is Indonesia, with Indah Kiat Perawang accounting for 73% of APP's Indonesian pulp production in 2009.[7]

China is now the main production base for APP paper, packaging and tissue products.[8]

APP Indonesia - the main source of MTH pulp production

APP Indonesia states that it 'now has a wood pulp production capacity approaching 3m tonnes/annum and a paper production capacity of some 7.3m tonnes/annum'.[9] In 2009 APP produced around 7 million tonnes of pulp and paper (2.7 million tonnes of virgin pulp fibre and 4.4 million tonnes of paper), generating revenue of over $4 billion.[10]

APP Indonesia encompasses pulp, paper and packaging production manufactured through several operating companies: PT Lontar Papyrus Pulp & Paper (Jambi); PT Indah Kiat Pulp & Paper Tbk (with operations in Perawang, Riau and Serang and Tangerang, Java); PT Pindo Deli Pulp & Paper Mills (with operations in Perawang, Riau and Karawang, Java); PT Pabrik Kertas Tjiwi Kimia Tbk (Mojokerto, Java); PT Ekamas Fortuna (Malang, Java); and The Univenus (with operations in Perawang, Riau and on Java).[11]

APP China - a key market for MTH pulp from Indah Kiat Perawang

In 2009 APP China was undergoing rapid expansion in pulp and paper production capacity, with this capacity expected to reach 8 million tonnes (6 million tonnes of paper products and 2 million tonnes of pulp).[12] In 2009, sales revenues of pulp and paper amounted to $5 billion.[13]

At the end of 2009, APP China owned more than 20 pulp and paper mills as wholly owned subsidiaries and holding companies.[14] The major pulp and paper mills are Gold East Paper Co, Ltd (Jiangsu); Gold Hongye Paper Co, Ltd (Suzhou Industrial Park); Gold Huasheng Paper Co, Ltd (Suzhou Industrial Park); Hainan Jinhai Pulp & Paper Co, Ltd (Jinhai); Ningbo Asia Pulp & Paper Co, Ltd (Ningbo); and Ningbo Zhonghua Paper Co, Ltd (Ningbo).[15] APP China imports almost one-third of its pulp needs, including substantial volumes of MTH pulp from its mills in Indonesia.[16]

While some MTH pulp is used by APP paper mills in Indonesia, roughly half of this MTH pulp is exported to China.[17]

APP companies with trade links to Indah Kiat Perawang account for 80% of APP's total export trade

APP companies with trade links to Indah Kiat Perawang account for 80% of APP's total export trade

See the chain of custody links between global brands and APP mills:
Table 1: chain of custody links between global brands where MTH has been found in at least one product and APP mills 
Table 2: chain of custody links between global brands and APP mills 

Pulp from Indah Kiat Perawang is traded to APP's own paper mills in Indonesia and China. These mills make various commodities, including copy and printing papers, tissue products, packaging and printed materials such as books. Such products are traded directly by APP, as well as by third-party packaging converters, printers and traders. These are then used by multiple global industries across sectors - from fashion houses to food giants and including the electronics, cosmetics, footwear, cigarette and toy sectors - and traded by global retailers.[18]

Using 2010 trade data, the investigation identified ~3.1 million tonnes of direct trade in paper, tissue and packaging products from these sister APP paper mills in Indonesia and China to 136 countries that are parties to CITES. This represents more than 80% of a total 3.7 million tonnes identified direct trade of such products from APP Indonesia and China.[19]

The investigation has identified four trafficking routes by which pulp from Indah Kiat Perawang enters international trade. Through these channels, APP paper mills in Indonesia and China distribute Indah Kiat pulp through three main commodities: paper (copy and printing paper), tissue products and packaging board.

Investigating the international trafficking routes from Indah Kiat

Using recent APP public documents together with trade data, the investigation identified trade links from the Indah Kiat Perawang pulp mill to some of APP's main paper mills in Indonesia and China.

Fibre testing of products or brands associated with individual APP mills confirms the presence of MTH in the virgin fibre content in a number of samples.[20] This indicates that the mill is using MTH pulp as part of its supply chain.

These trafficking routes illustrate the potential routes by which APP's violation of Indonesia's ramin ban and its national CITES regulations penetrates international trade.

End matter

Mapping Indah Kiat Perawang pulp flows to APP mills

Mapping flows of pulp from Indah Kiat Perawang to APP mills in Indonesia and China

Indicative volumes of Indah Kiat Perawang pulp entering the different international trafficking routes

Using various recent APP documents (published 2008 to 2011) and other sources of company trade data, the investigation mapped out the supply chain distribution of the ~2 million tonnes of virgin hardwood pulp (Leaf Bleach Kraft Pulp, LBKP) produced at Indah Kiat Perawang to sister APP paper mills in Indonesia and China.

APP states in its 2008/2009 corporate sustainability report[21] that 'Indah Kiat paper machines' consume about 40% (800,000 tonnes) of Indah Kiat Perawang pulp production. Given that the same report indicates that Indah Kiat paper machines located in Perawang, Serang and Tangerang consume ~550,000 tonnes, it is assumed that the Pindo Deli and The Univenus tissue machines located within the Indah Kiat Perawang complex consume the ~250,000 tonne balance unaccounted for in the report:

  • Pindo Deli alone produces about 280,000 tonnes of tissue per year at the Perawang complex,[22] requiring roughly the same volume of pulp.
  • PT Univenus, with an installed capacity at Perawang of 20,000 tonnes,[23] would also require roughly an equivalent volume of pulp.
  • The balance of 50,000 tonnes of pulp requirement is likely accounted for by APP's fibre imports of Needle Bleached Kraft Pulp (NBKP)[24] and imported eucalyptus Leaf Bleached Kraft Pulp (LBKP).

Of the remaining 60% (~1.2 million tonnes) of Indah Kiat's pulp production, around half is exported to APP paper mills in China, with Gold East Paper, Gold Huasheng and the Ningbo paper mills being the largest importers of Indonesian pulp.[25] The vast majority of this is classified as MTH pulp.[26]

The majority of the balance of pulp production from Indah Kiat Perawang remaining in Indonesia is likely consumed by Pabrik Kertas Tjiwi Kimia, which purchased goods from Indah Kiat worth $164 million and $208 million in 2009 and 2010, respectively.[27] Assuming an average open market price of $600 in 2009 and $800 in 2010,[28] the average volume of pulp traded from Indah Kiat Perawang to Pabrik Kertas Tjiwi Kimia might have amounted to up to 260,000 tonnes in each of these two years.[29]

Supporting evidence: approximate APP Indonesia pulp accounts

Within Indonesia, APP has two pulp mills: the PT Indah Kiat Perawang pulp mill in Riau, which produced ~2 million tonnes of pulp in 2009[30] and ~2.3 million tonnes of pulp in 2010,[31] and PT Lontar Papyrus Pulp & Paper Industries, which produced 0.74 million tonnes of pulp in 2009.[32]

2009 total hardwood pulp (Leaf Bleached Kraft Pulp, LBKP) production
APP Indonesia:[33] 2.72 million tonnes
Indah Kiat Perawang:[34] 1.984 million tonnes
Lontar Papyrus:[35] 0.736 million tonnes
Indah Kiat Perawang pulp trade to its own mills
Used by 'Indah Kiat paper machines' (40%):[36] 0.79 million tonnes
Used at Indah Kiat Perawang paper mill:[37] 0.40 million tonnes
Used at Indah Kiat Serang paper/packaging mill:[38] 0.077 million tonnes
Used at Indah Kiat Tangerang paper mill:[39] 0.059 million tonnes
Subtotal for Indah Kiat mills: 0.54 million tonnes
Unattributed balance for 'Indah Kiat paper machines', likely used within Indah Kiat Perawang complex by Pindo Deli and The Univenus tissue machines: 0.25 million tonnes
Lontar Papyrus pulp trade to its own mills
Used on site to produce tissue:[40] minimal (36,499 tonnes)
Indah Kiat Perawang pulp exports to China (2010)
Total APP pulp exports to China (est. 2010):[41] 0.57 million tonnes
Indah Kiat MTH pulp exports to China (est. 2010):[42] 0.44 million tonnes
APP Indonesia pulp available to other APP Indonesia mills in 2009 (MTH pulp exports 2009 assumed same as 2010)
60% of Indah Kiat pulp production not consumed by 'Indah Kiat paper machines': ~1.2 million tonnes
Available Lontar Papyrus pulp: ~0.7 million tonnes
Balance of APP Indonesia pulp available to APP mills: 1.9 million tonnes
Indonesian pulp imported by APP China: 0.56 million tonnes
Balance of APP Indonesia pulp available to other APP Indonesia mills: 1.34 million tonnes
Use of 'local' LBKP pulp by APP Indonesia mills in 2009
Tjiwi Kimia consumption of local LBKP pulp:[43] 0.72 million tonnes
Pindo Deli consumption of local LBKP pulp:[44] 0.54 million tonnes
Subtotal: 1.26 million tonnes (more or less equivalent to available balance - other APP mills in Indonesia use negligible volumes of local LBKP pulp)

Related downloads

Footnotes

[1] The 12 mills are Indah Kiat Perawang, Indah Kiat Tangerang, Indah Kiat Serang, Tjiwi Kimia(counting the paper mill and printing facility as one), Pindo Deli Perawang, The Univenus Perawang, The Univenus Java, Gold East, Gold Huasheng, Yalong, Ningbo Zhonghua and Ningbo Asia Pulp and Paper.
[2] The 8 companies for which MTH has been identified via fibre testing are Indah Kiat, Tjiwi Kimia, Pindo Deli, Gold East, Gold Huasheng, Yalong, Ningbo Zhonghua and Ningbo Asia Pulp and Paper. The ninth company for which specific products have not yet been definitively identified is The Univenus.
[3] Based on trade data and CITES 'List of contracting parties'
[4] Lifshitz (2010): 4
[5] APP (2011c): 6
[6] APP (2011c): 16
[7] APP (2011c): 17
[8] Various company sources, eg APP China www.app.com.cn/english/aboutus/xsdw/index.html
[9] APP (2011c): 4
[10] This figure includes packaging and chemical products. Source: APP (2011c): 17.
[11] APP (2011c), APP website 'Facilities & subsidiaries overview' accessed 4/1/2012
[12] APP (2010): 2
[13] 34.5 billion RMB. 2010 year-average conversion to dollars at 0.146 $:RMB. Source: APP (2010): 2.
[14] APP (2010): 5
[15] APP (2010): 5
[16] APP (2010): 36. Official Chinese customs data show that APP China's paperboard mills import Indonesian pulp. Source: CTI (2010). Confidential information obtained by Greenpeace shows that APP's pulp mill in Perawang, Riau is a large exporter of pulp to China.
[17] Confidential information held by Greenpeace reveals that in 2010, Indah Kiat exported about 440,000 tonnes of MTH pulp to China.
[18] Greenpeace investigations 2010-2011
[19] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace
[20] IPS and IfP-GmbH test results 2010-2012. Copies held by Greenpeace.
[21] APP (2011c)
[22] Rushton (2011)
[23] Kalil (2008)
[24] APP (2011c): 24
[25] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace
[26] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace
[27] IKPP (2011a): 53
[28] Eg Asia Paper Markets (2011)
[29] Group internal prices set below market price would mean higher volumes shipped. If shipments also included paper products (both mills produce uncoated wood-free papers), pulp volumes would decrease accordingly.
[30] APP (2011c): 17
[31] Estimate based on fibre consumption Jan-Nov 2010; source: MoFor (2010h). See also Tempo Interaktiv (2010).
[32] APP (2011c): 17
[33] APP (2011c): 17
[34] APP (2011c): 17
[35] APP (2011c): 17
[36] APP (2011c): 27
[37] APP (2011c): 29
[38] APP (2011c): 39. Figures presented in this report on p39 for IK Serang are contradictory. The amount of local LBKP pulp purchased (see table 26) has been used here as a conservative assumption.
[39] APP (2011c): 43. Figure accounting for local LBKP purchases.
[40] APP (2011c): 32. The authors assume table 19 of this report to be incorrect, with figures given for 'NBKP - Import Verified (NCONT / CW)' actually representing locally sourced LBKP pulp. See text on same page for comparison.
[41] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace
[42] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace
[43] APP (2011c): 52
[44] APP (2011c): 47

International trafficking route one: direct exports from the Indah Kiat Perawang complex to the international market 

Trafficking route 1


Within the Indah Kiat Perawang complex, in Riau, Sumatra, there are three APP group operating companies manufacturing paper and tissue products: Indah Kiat, Pindo Deli and The Univenus. According to APP:

  • 40% of pulp produced at Indah Kiat Perawang was consumed by 'Indah Kiat paper machines' in 2009.[45] APP Indonesia pulp consumption data indicate this includes the Indah Kiat Perawang paper machines.
  • 'A portion of the pulp produced at the Indah Kiat Perawang Mill is used onsite to make paper products.'[46] APP Indonesia pulp consumption data indicate that this includes the pulp used by the Pindo Deli and The Univenus tissue machines located within the Indah Kiat Perawang complex.[47]

The investigation has identified that these three paper and tissue mills within the Indah Kiat Perawang complex trade to 84 CITES party countries around the world.

Indah Kiat Perawang and Pindo Deli Perawang: MTH link confirmed

Testing confirms Indah Kiat Perawang and Pindo Deli Perawang's use of MTH pulp as part of the supply chain:

  • Fibre testing of copy paper manufactured by Indah Kiat Perawang confirms the presence of MTH, together with acacia, in the virgin fibre content of a number of samples (eg Xerox).[48] This indicates the mill is using MTH pulp as part of its supply chain.
  • Fibre testing of CottonSofts Marine Splash, an APP-brand tissue product traded through the APP company Cottonsoft New Zealand, confirms the presence of MTH, together with acacia.[49] In 2010, Cottonsoft New Zealand imported a significant share of its APP Indonesia supplies from the Pindo Deli paper mills within the Perawang complex.[50] This indicates a high probability that the Pindo Deli paper mills within the Perawang complex use MTH pulp.
  • For further details or other examples, see table 'Chain of custody links between global brands and APP paper mills with trade links to Indah Kiat Perawang'.

The Univenus Perawang: MTH link unconfirmed

  • In the USA, APP companies Solaris Paper and Mercury Paper import semi-finished tissue products and tissue mother reels from various APP mills in Indonesia and China for conversion and repackaging into final retail products. One of the suppliers is The Univenus Perawang, which exports the majority of its production to the USA. Products distributed by Solaris and Mercury Paper are marketed under a variety of brands including Paseo and Livi, or retailer own-brands. The mill of origin is not labelled on the final retail products. Consequently, the investigation has been unable to identify any specific retail items for testing that can be strongly linked to The Univenus.

End matter

Profiles of trafficking route one paper mills

Profiles of trafficking route one paper mills

Within the Perawang complex, there are three APP group paper mills: Indah Kiat Perawang, Pindo Deli Perawang and The Univenus Perawang.

Operating company: Indah Kiat

The investigation has identified around 380,000 tonnes of direct trade in 2010 from Indah Kiat Perawang to 78 countries that are parties to CITES.[51]

Location: Perawang, Riau, Sumatra

Production: Paper and packaging production in 2010: 800,000 tonnes,[52] with ~400,000 tonnes of copy paper, ~220,000 tonnes of printing and writing paper (eg fine paper, stationery, printing materials) and the balance going into speciality packaging markets[53]

Expansion: In June 2011, Reuters reported that Indah Kiat Perawang would be expanding its paper capacity by 500,000 tonnes by the end of 2012, through $100-150 million investment in 16 paper machines.[54]

Identified APP brands:
Copy paper:[55] Hybrite, Paperon, e-Paper, IK Copy, IK Plus, IK Gold, Paperline Global

Identified key export destinations: Malaysia, USA, China, Europe (Italy, Spain, United Kingdom)

Operating company: Pindo Deli

The investigation has identified around 36,000 tonnes of direct trade in 2010[56] from the Pindo Deli machines within Indah Kiat Perawang to 21 countries that are parties to CITES.

Location: Perawang, Riau, Sumatra

Production: 352,000 tonnes/yr[57] unbranded tissue mother reels

Identified export destinations: United Arab Emirates (UAE), New Zealand, Malaysia, Philippines, Vietnam, Australia, others

Operating company: The Univenus

The investigation has identified 62,000 tonnes of direct trade in tissue in 2010[58] through The Univenus Perawang to over 20 countries that are parties to CITES. This significantly exceeds known installed production capacity; the investigation was unable to identify whether The Univenus has expanded its capacity or whether a large volume of this is produced by the other tissue facility in Perawang, Pindo Deli, which has a far greater production capacity and low direct exports.

Location: Perawang, Riau, Sumatra

Production: 20,000 tonnes/yr[59] of unbranded tissue mother reels.[60] Some of these are exported directly, some are traded to its sister mill on Java.

Identified export destinations: USA, Canada, UAE, China, others

Footnotes

[45] APP (2011c): 27
[46] APP (2009)
[47] See calculations in Appendix 'Supplementary data on pulp flows to mills and trafficking routes'.
[48] Confidential information held by Greenpeace and IPS and IfP-GmbH test results 2010-2012. Copies held by Greenpeace.
[49] IPS and IfP-GmbH test results 2010-2012. Copies held by Greenpeace.
[50] Confidential information held by Greenpeace
[51] Estimate based on confidential data held by Greenpeace
[52] Tempo Interaktiv (2010)
[53] Rushton (2011)
[54] Reuters (2011)
[55] IKPP (2010b)
[56] Estimate based on confidential data held by Greenpeace
[57] Tissue World (2010)
[58] Estimate based on confidential data held by Greenpeace
[59] RISI (2010)
[60] APP website 'PT The Univenus' www.asiapulppaper.com

International trafficking route two: direct export of MTH pulp from Indah Kiat Perawang to APP China mills

Trafficking route 2


Gold East Paper, Gold Huasheng Paper, Ningbo mills and Gold Hongye Paper: MTH link confirmed

The investigation has identified direct export of an estimated 440,000 tonnes of MTH pulp from Indah Kiat Perawang to China, a CITES party country, in 2010 - approximately 50% of the mill's total estimated MTH pulp production.[61] Virtually all the MTH pulp exported to China by APP was produced by Indah Kiat Perawang, with a very limited share coming from APP Indonesia's smaller pulp mill, Lontar Papyrus.[62]

MTH pulp produced at Indah Kiat Perawang is exported to APP China mills. The major APP importers of Indonesian hardwood pulp are Gold East Paper (Jiangsu), Gold Huasheng Paper (Jiangsu), the Ningbo mills (Ningbo Zhonghua Paper Industry and Ningbo Asia Pulp & Paper Industry) (Zhejiang) and Gold Hongye Paper (Jiangsu).[63]

  • In 2010, China imported an estimated 440,000 tonnes of MTH pulp from Indah Kiat Perawang.[64]
  • APP China's largest importers of Indonesian hardwood pulp are Gold East Paper (47%), Gold Huasheng Paper (21%), the Ningbo mills (28%) and Gold Hongye Paper (3%), importing a total of 560,000 tonnes in 2010.[65]

End matter

Exports of MTH pulp from Indah Kiat Perawang to China

Exports of MTH pulp from Indah Kiat Perawang to China

Operating company: Indah Kiat

The investigation has identified 440,000 tonnes of direct trade in MTH pulp in 2010[66] from Indah Kiat Perawang to China, which is a party to CITES.

Location: Perawang, Riau, Sumatra

Production: ~2 million tonnes in 2009[67] and 2.3 million tonnes in 2010[68]

Expansion: In 2011, APP Indonesia's 2008/2009 Corporate Sustainability report indicated the intent to expand licensed pulp capacity by 1 million tonnes/yr.[69]

Identified key APP China mills importing Indonesian pulp: Gold East Paper (47%), Gold Huasheng Paper (21%), Ningbo mills (28%)[70]

Key ports importing MTH pulp from Indah Kiat Perawang: Dagang (60%), Ningbo (23%) and Shanghai (15%),[71] together accounting for 98% of all exports

Gold East Paper is located in Dagang, and APP has several paper mills in Ningbo. The port of Shanghai is close to Gold Huasheng and other APP mills importing Indonesian pulp.

Footnotes

[61] Confidential information held by Greenpeace
[62] Confidential information held by Greenpeace
[63] Chinese customs data list 7 APP mills as importers of Indonesian pulp: Gold East Paper (Jiangsu) Co Ltd, Jinhuasheng Paper Industry Co Ltd, Ningbo Zhonghua Paper Co Ltd, Ningbo Asia Pulp Paper Industry Co Ltd, Jinhongye Paper Suzhou Industrial Area Co Ltd, Jin Feng Yuan Paper Industry (Shanghai) Co Ltd and Hainan Jinhai Pulp & Paper Co, Ltd. Source: CTI (2010).
[64] Confidential information held by Greenpeace
[65] Chinese customs data list 7 APP mills as importers of Indonesian pulp: Gold East Paper (Jiangsu) Co Ltd, Jinhuasheng Paper Industry Co Ltd, Ningbo Zhonghua Paper Co Ltd, Ningbo Asia Pulp Paper Industry Co Ltd, Jinhongye Paper Suzhou Industrial Area Co Ltd, Jin Feng Yuan Paper Industry (Shanghai) Co Ltd and Hainan Jinhai Pulp & Paper Co, Ltd. Source: CTI (2010).
[66] Estimate based on Chinese import data (source: CTI (2010) together with confidential information held by Greenpeace
[67] APP (2011c): 17
[68] Estimate based on fibre consumption Jan-Nov 2010; source: MoFor (2010h). See also Tempo Interaktiv (2010).
[69] APP (2011c): 27
[70] CTI (2010)
[71] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace

International trafficking route three: exports to the international market from APP China mills that source MTH pulp from Indah Kiat Perawang 

Trafficking route 3


Gold East Paper, Gold Huasheng Paper, Ningbo mills and Yalong: MTH link confirmed

The investigation has focused on three APP sister paper mills in China that import or use MTH pulp from Indah Kiat Perawang to manufacture paper, tissue or packaging products and one APP paper converter confirmed to process paper products containing MTH fibre. These four APP China companies are responsible for the vast majority of APP China direct exports, trading to 125 CITES party countries around the world.

  • Three of the APP China paper mills directly linked to the import of MTH pulp from Indonesia account for 1.4 million tonnes, or 92%, of APP China's total registered paper exports: Gold East Paper (57%), Gold Huasheng Paper (14%) and Ningbo Zhonghua (21%).[72] Further fibre testing of products reinforces the evidence that these paper mills are using MTH pulp as part of their supply chains.[73] For example, fibre testing confirmed the presence of MTH in Nevia paper manufactured by Gold East.[74]
  • Trafficking route two data indicate that virtually all MTH pulp imported by APP China originates from Indah Kiat Perawang. Therefore, it is highly probable that any APP paper mill in China that manufactures products containing MTH, together with acacia, in the virgin fibre component is linked to Indah Kiat Perawang.
  • One of APP's paper converters using paper produced by APP China paper mills is Yalong Paper Products. Yalong Paper accounts for an additional 19,000 tonnes (1%) of APP China's paper exports.[75] Fibre testing of copy paper manufactured by Yalong Paper confirms the presence of MTH in the virgin fibre content in a number of samples (eg Topgun, sold at Walmart).[76] This indicates that Yalong Paper is using paper materials produced from MTH pulp as part of its supply chain; it is highly probable that Yalong Paper's production is linked to MTH pulp from Indah Kiat Perawang.
  • For further details or other examples, see table 'Chain of custody links between global brands and APP paper mills with trade links to Indah Kiat Perawang'.

End matter

Profiles of trafficking route three paper mills

Profiles of trafficking route three paper mills

Operating company: Gold East Paper

The investigation has identified over 750,000 tonnes of direct trade in 2010 from Gold East Paper to almost 100 countries that are parties to CITES.

Location: No. 8, Xinggang East Road, Dagang, Zhenjiang City, Jiangsu Province, China (Post number: 212132)

Production: 2.2 million t/yr[77] fine paper

Gold East Paper is APP's largest paper mill in China.[78] It is also the largest importer of pulp from Indonesia within China-based APP group companies.[79] APP claims Gold East Paper is the world's largest manufacturer of art paper.[80] These coated fine papers are used for glossy magazines, company brochures, calendars and coffee table books. In 2010, APP's mill Hainan Jin Hai Pulp & Paper Industry Co, Ltd started operating a 1 million tonnes/year paper machine for coated fine paper, further enhancing APP's market dominance.[81]

Identified APP brands:

Paper: Nevia (art board),[82] Space Shuttle,[83] Sunbrite,[84] Xplore,[85] Art-Tech (printing and label paper),[86] Ovation [87]

Identified key export destinations: Japan, Europe (UK alone represents >8% of market, plus Italy, France, Greece, Germany, Spain, Belgium), Israel, India, USA, Canada, Australia, New Zealand

Operating company: Gold Huasheng

The investigation has identified 190,000 tonnes of direct trade in 2010 from Gold Huasheng to about 90 countries that are parties to CITES. Gold Huasheng is the biggest carbonless copy paper producer globally.[88] Sales revenue was 2.9 billion RMB in 2009.[89]

Location: No. 2 Jinsheng Road, Shengpu, Suzhou Industrial Park, Suzhou, Jiangsu 215126, China

Production: 0.53 million t/yr[90] paper and art board

Identified APP brands:

Paper: Impression (uncoated digital paper),[91] Impression Lux (uncoated woodfree),[92] Impression Plus (carbonless copy paper),[93] Laser (uncoated woodfree),[94] Nevia (coated woodfree - art board),[95] Nireus (art board),[96] Record (form & thermal paper),[97] Gold Ball (uncoated woodfree),[98] Gold Butterfly (continuous form & copy paper)[99]

Identified key export destinations: USA/Canada, Europe (UK, Germany, Spain, Italy, France), UAE, Thailand, Iran, Australia/New Zealand

Operating companies: Ningbo mills - paper, speciality papers and card, packaging

The investigation has identified over 260,000 tonnes of direct trade in 2010 from Ningbo mills to around 80 CITES party countries, almost all by Ningbo Zhonghua.[100]

Location: Ningbo. APP has five paper mills and converting facilities in the city of Ningbo (Zhejiang Province), with all but one located within close proximity of each other: Ningbo Zhonghua Paper, Ningbo Asia Pulp and Paper, Ningbo Asia Paper Converting, Ningbo Asia Paper Tube & Carton Box and Ningbo Asia Unpolluted Paper Products.

Production:

Mills importing IKPP pulp:

Ningbo Zhonghua Paper: 500,000 t/yr (paperboard)[101]

Ningbo Asia Pulp and Paper: 750,000 t/yr (paperboard)[102]

converters likely to be using supplies from these mills that include IKPP pulp:

Ningbo Asia Paper Converting: 36,000 t/yr (packaging)[103]

Ningbo Asia Paper Tube & Carton Box: 135,000 t/yr (packaging)[104]

Ningbo Asia Unpolluted Paper Products: 6,000 t/yr (paper)[105]

Identified APP brands:

Packaging from Ningbo Zhonghua Paper:[106] Chieftain (art board), Ningbo Fold (packaging board), Ningbo Poker (playing cards), Ningbo Spark (packaging board), Ningbo Star (packaging/art board), Omnistar (art board), Zenith (packaging board), Nevia (art board)[107]

Sales revenue of Ningbo Zhonghua Paper and Ningbo Asia Pulp & Paper was 2.7 billion RMB in 2009.[108]

Identified key export destinations: USA/Canada, Europe (Italy, UK, Netherlands, Spain, Belgium, Germany, Greece, France), India

Operating company: Yalong Paper Products Co, Ltd

The investigation has identified 19,000 tonnes of direct trade in 2010 from Yalong to almost 50 countries that are parties to CITES.

Location: Xinnanpian, Yushan Economic and Technological Development Zone, Kunshan, Jiangsu Province, China

Production: 200,000t/yr[109] stationery, packaging and shopping bags

Yalong Paper is one of APP's mills close to Shanghai, specialising in stationery, office papers, continuous form, luxury shopping bags and packaging.

Identified APP brands:[110]

Copy paper: Flagship, Top Gun, Red Gun, Benefit, Astronaut, Shully, Crocodile

Stationery: Apport, Huli, Guangli

Identified key export destinations: Japan, UK, Spain, Saudi Arabia, USA

Footnotes

[72] CTI (2010)
[73] IPS and IfP-GmbH test results 2010-2012. Copies held by Greenpeace.
[74] APP Brazil (2011) Reminder Nevia 2011, copy held by Greenpeace
[75] CTI (2010)
[76] IPS and IfP-GmbH test results 2010-2012. Copies held by Greenpeace.
[77] Gold East Paper 'Company profile' www.goldeastpaper.com/About_Us.aspx accessed April 2011
[78] APP (2010)
[79] Chinese import data (source: CTI (2010)) together with confidential information held by Greenpeace
[80] Cathay Brasil (2011)
[81] Chang (2010)
[82] Gold East Paper website 'Products' accessed 4/1/2012
[83] Gold East Paper website 'Products' 4/1/2012
[84] Gold East Paper website 'Products' accessed 4/1/2012
[85] Gold East Paper website 'Products' accessed 4/1/2012
[86] Gold East Paper website 'Products' accessed 4/1/2012
[87] Kodak (2010)
[88] APP China website 'Gold Huasheng Paper' accessed 1/2/2012
[89] APP (2011d)
[90] APP (2011d)
[91] Gold Huasheng Paper website accessed 14/11/2011
[92] Gold Huasheng Paper website accessed 14/11/2011
[93] Gold Huasheng Paper website accessed 14/11/2011
[94] Gold Huasheng Paper website accessed 14/11/2011
[95] Gold Huasheng Paper website accessed 14/11/2011
[96] Gold Huasheng Paper website accessed 14/11/2011
[97] Gold Huasheng Paper website accessed 14/11/2011
[98] Gold Huasheng Paper website accessed 14/11/2011
[99] Gold Huasheng Paper website accessed 14/11/2011
[100] CTI (2010)
[101] Ningbo Zhonghua website 'Company profile' accessed 14/5/2011
[102] APP China website 'Ningbo Asia Pulp & Paper Co' accessed 15/5/2011
[103] APP China website 'Ningbo Asia Paper Converting Co' accessed 4/1/2012
[104] APP China website 'Ningbo Asia Paper Tube & Carton Box Co' accessed 4/1/2012
[105] APP China website 'Ningbo Asia Unpolluted Paper Products Co' accessed 4/1/2012
[106] Zhonghua Paper website 'Profile' www.zhonghua-paper.com/en/about.php?gid=11; www.zhonghua-paper.com/en/protype.php?gid=3&tid=190
[107] APP China website 'Products Nevia/Ningbo Gloss'  
[108] APP (2011d)
[109] Yalong Paper website 'About us' accessed 14/1/2011
[110] Yalong Paper, company brochure downloaded November 2011

International trafficking route four: exports to the international market from APP Indonesia mills with trade links to Indah Kiat Perawang

Trafficking route 4


Indah Kiat Perawang can be documented to trade pulp to three APP sister paper mills in Indonesia that then export paper, tissue and packaging products to 115 CITES party countries around the world: Indah Kiat Serang, Indah Kiat Tangerang and Tjiwi Kimia.[111]

  • According to APP, in 2009 40% of pulp production at Indah Kiat Perawang was consumed by 'Indah Kiat paper machines'.[112] APP Indonesia pulp consumption data indicate that these 'Indah Kiat paper machines' include the Indah Kiat paper mills on Java at Serang and Tangerang.
  • Internal sales data indicate that Indah Kiat is a major supplier of raw materials to Tjiwi Kimia.[113] APP Indonesia pulp consumption data indicate that these raw materials are highly likely to be pulp from the Indah Kiat Perawang mill.
  • APP's printing paper mill PT Pindo Deli is also likely to process pulp supplied by Indah Kiat Perawang, but company data is incomplete.[114]

Indah Kiat Serang, Indah Kiat Tangerang and Tjiwi Kimia: MTH link confirmed

  • Fibre testing of products manufactured at Indah Kiat Serang, Indah Kiat Tangerang and Tjiwi Kimia confirms the presence of MTH, together with acacia, in the virgin fibre content in a number of samples.[115] This indicates that Indah Kiat Serang, Indah Kiat Tangerang and Tjiwi Kimia use MTH pulp as part of their supply chains. Examples of products found to contain MTH fibre include Danone Nutricia Nutrilon Royal 3 packaging linked to Indah Kiat Serang, and Barnes & Noble 'Nursery rhyme treasury' books printed by Tjiwi Kimia.[116]
  • For further details or other examples, see table 'Chain of custody links between global brands and APP paper mills with trade links to Indah Kiat Perawang'.

The Univenus: MTH link unconfirmed

  • The Univenus on Java exports semi-finished tissue products from mother tissue reels manufactured by The Univenus Perawang.[117] It therefore shares a supply chain with its sister Perawang mill, for which the MTH component is unconfirmed (see 'Trafficking route one', above).

End matter

Profiles of trafficking route four paper mills

Profiles of trafficking route four paper mills

Operating company: Indah Kiat

The investigation has identified over 300,000 tonnes of direct trade in 2010[118] from Indah Kiat Serang to over 60 countries that are parties to CITES.

Location: Serang, Java

Production: 1.255 million tonnes/yr packaging papers and converted carton and boxes;[119] installed capacity reported as 1.6 million tonnes/yr as a result of 'progressive expansion'[120]

Identified APP brands:

Packaging materials: Foopak (heat-sealable paper for food packaging),[121] SavviBrite (board for packaging and graphic applications),[122] Sinarboard (board for packaging),[123] Sinarfold (packaging),[124] Savvicoat (board for packaging and graphic applications),[125] Sinarplex (packaging),[126] Sinarvanda (high-quality packaging),[127] Hi-Pack LB (face paper of carton board),[128] Pro-Pack LH (face paper of carton board),[129] Pro-Pack LE (face paper for carton board),[130] High Pack MA/Kraft Liner (corrugated fluting for carton box),[131] Pro-Pack WA (face paper for corrugated board),[132] Pro-Pack WK (face paper for corrugated board)[133]
Coated art board: Sinar Royal[134]

Identified key export destinations: China, Malaysia, Japan, Europe (Italy, Belgium, Spain, UK), USA

Operating company: Indah Kiat

The investigation has identified 27,000 tonnes of direct trade in the first half of 2010 from Indah Kiat Tangerang to almost 70 countries that are parties to CITES.

Location: Tangerang, Java

Production: 100,000 tonnes/yr printing and writing paper[135]

Identified APP brands:

Stationery:[136] Sinar Tech (high-opacity colour paper), Sinar Colour (colour photocopy paper), Paperline (colour photocopy)

Identified key export destinations: Japan, Malaysia, Taiwan, China, Europe (Germany, France, Spain, UK), USA

Operating company: Pabrik Kertas Tjiwi Kimia (PKTK)

The investigation has identified 660,000 tonnes of direct trade in 2010[137] from Tjiwi Kimia to 110 countries that are parties to CITES.

Location: Surabaya, Java

Paper production: 1 million tonnes/yr printing and writing paper, envelope paper, packaging paper and boards, carton board, etc[138]

Printing production: 6 bindery production lines and 30 printing machines.[139] TK Printing is part of PT Pabrik Kertas Tjiwi Kimia and claims to be 'the largest printing and book manufacturing [sic] in Indonesia', sourcing paper from its parent company, located at the same site on Java.[140] The company manufactures a 'wide range of printing products including books, calendars, brochures, posters, leaflets, commercial printing, etc'.[141]

Expansion: In June 2011, Reuters reported that PT Pabrik Kertas Tjiwi Kimia would be increasing annual capacity by 100,000 tonnes through a $100 million investment in 13 paper machines.[142]

Identified APP brands:

Coated paper: Enova,[143] Enova Wet Pro (labels)[144]

Uncoated/copy paper: Sinar Royal White,[145] Exceedo,[146] ExcelPro,[147] Exkarro,[148] Paper Plus,[149] Extraprint,[150] Integrite,[151] Paperline Gold,[152] Sinar Copy,[153] Sinar Dunia,[154] Sinar Line,[155] Sinar Royal,[156] Copy Mate,[157] ProPrint[158]

Packaging/art paper: Egis (packaging and graphical art paper) [159]

Identified key export destinations: Japan, UAE, USA/Canada, Australia, Europe (Spain, Greece, Netherlands, Italy, France, UK, Germany)

Operating company: The Univenus

The investigation has identified 26,000 tonnes of direct trade in 2010[160] from The Univenus, Java to around 25 countries that are parties to CITES.

Location: Java

Production: Converting tissue mother reels to facial tissue paper, handkerchief tissue paper, toilet paper, paper towels and paper napkins[161]

Identified APP brands: Toply, Four Roses, Livi and Nice[162]

Identified export trade to APP-related companies: Solaris Paper (USA/Canada)

Identified key export destinations: USA/Canada (>70% of exports), UAE, UK

Footnotes

[111] APP (2010)
[112] APP (2011c): 27
[113] Indah Kiat net sales to Tjiwi Kimia were around $170 million in both the January-September 2010 and January-September 2011 periods. Source: IKPP (2011b): 59.
[114] 'The total amount of pulp purchased by Pindo Deli mills [on Java] declined by 6 percent between 2008 and 2009, from 741,070 to 696,880 AD tonnes. The majority of pulp used is produced at APP mills in Indonesia, from certified/verified pulpwood.' Source: APP (2011c): 47 [emphasis added].
[115] IPS and IfP-GmbH test results 2010-2012. Copies held by Greenpeace.
[116] US customs data
[117] Solaris website 'Our mills', www.solarispaper.com/mills.php accessed 15/9/2008
[118] Estimate based on confidential data held by Greenpeace
[119] APP (2011c): 17
[120] APP (2011c): 17
[121] Tjiwi Kimia Paper Products (undated)
[122] IKPP website 'Serang mill - Paper product' accessed 4/1/2012
[123] IKPP website 'Serang mill - Paper product' accessed 4/1/2012
[124] IKPP website 'Serang mill - Paper product' accessed 4/1/2012
[125] IKPP website 'Serang mill - Paper product' accessed 4/1/2012
[126] IKPP website 'Serang mill - Paper product' accessed 4/1/2012
[127] IKPP website 'Serang mill - Paper product' accessed 4/1/2012
[128] IKPP website 'Serang mill - Test liner' accessed 4/1/2012
[129] IKPP website 'Serang mill - Test liner' accessed 4/1/2012
[130] IKPP website 'Serang mill - Test liner' accessed 4/1/2012
[131] IKPP website 'Serang mill - Fluting medium' accessed 4/1/2012
[132] IKPP website 'Serang mill - White top test liner' accessed 4/1/2012
[133] IKPP website 'Serang mill - White top test liner' accessed 4/1/2012
[134] APP UAE website 'Sinar Royal' accessed 17/1/2012
[135] RISI (2011)
[136] APP (2009): 22, 65
[137] Estimate based on confidential data held by Greenpeace
[138] APP (2010): 51
[139] Tjiwi Kimia printing website accessed 14/11/2011
[140] Tjiwi Kimia printing website accessed 14/11/2011
[141] Tjiwi Kimia printing website accessed 14/11/2011
[142] Reuters (2011)
[143] APP Brazil website 'Enova, produced by Tjiwi Kimia' accessed 5/1/2012
[144] Cathay, undated company brochure 'Enova Wetpro
[145] APP UAE website 'Semi high smoothness woodfree' accessed 5/1/2012
[146] APP Brazil website 'Exceedo, produced by Tjiwi Kimia' accessed 5/1/2012
[147] APP Brazil website 'Excelpro, produced by Tjiwi Kimia' accessed 5/1/2012
[148] TKPP (2010a)
[149] TKPP (2010b)
[150] APP Brazil website 'Extraprint, produced by Tjiwi Kimia' accessed 5/1/2012
[151] APP Brazil website 'Integrite, produced by Tjiwi Kimia' accessed 5/1/2012
[152] APP Brazil website 'Paperline Gold, produced by Tjiwi Kimia' accessed 5/1/2012
[153] TKPP website accessed 26/10/2011
[154] APP UAE website 'Photocopy paper high smoothness' accessed 5/1/2012
[155] TKPP (2010b)
[156] APP UAE website 'Semi high smoothness woodfree' accessed 5/1/2012
[157] TKPP (2010b)
[158] TKPP (2010b)
[159] APP Brazil website 'Egis, produced by Tjiwi Kimia' accessed 5/1/2012
[160] Estimate based on confidential data held by Greenpeace
[161] APP website 'Facilities & subsidiaries overview: PT. The Univenus
[162] APP website 'Facilities & subsidiaries overview: PT. The Univenus

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