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Southern Paper Materials Company: Overcoming difficulties to success 

 Friday, August 10,2018

AsemconnectVietnam - After 22 years of unremitting efforts, Southern Paper Materials Company has always excellently achieved its business plans, particularly growing and exploiting its 9,200-ha pine forest for paper materials.

As a pioneer in growing hybrid Acacia trees and pines in a war-torn site, the company managed to plant trees on 17,200 ha of forests for paper production. Unfortunately, hybrid Acacia trees died because of unsuitable soil and forest fires also caused the coverage shrinkage. Currently, the company is managing only 9,200 ha of pine forest spotted in 33 communes and towns in eight districts in Kon Tum province. President and Director Tong Huu Chan said, the suspension of Kon Tum pulp mill project broke the initial estimation because its forests are only used to produce pulp. If trees were chopped down, logs would be sold only to Gia Lai MDF factory. Due to far transport distance, the company would suffer a loss of over VND150 billion. And, if the company opted for medium-density fibreboard (MDF) production, it would incur a loss of over VND200 billion because pines of 15 years old had low-quality timber.

Therefore, Southern Paper Materials Company immediately reported to the Vietnam Paper Corporation and put forth plans to prevent losses from managing 9,200 ha of pine forests. Accordingly, the company suggested changing the business purpose from 15 years old to 25 years old for timber. It is clear that the suggestion for changing the business purpose from paper materials to hardwood is appropriate because it fits the governmental policy stipulated in the Prime Minister’s Decision No. 899/QD-TTg dated June 10, 2013 on approval of “agricultural restructuring towards increased value and sustainability” project. Previously, as Kon Tum province did not have pulp mills, logs taken from forest thinning process were sold to Gia Lai MDF Factory. Vietnam Paper Corporation started construction on Veneerco plywood production factory with an annual capacity of 12,000 cubic metres in Tan Canh commune, Dak To district, Kon Tum province. Currently, logs taken from forest thinning will be processed in-situ by the company instead of bringing to Gia Lai MDF Factory as earlier.
Before complicated climate change, with the most recent development being a prolonged drought caused by El Nino effects, the Central Highlands in general and Kon Tum province in particular seriously fall short of water resources and the risks of forest fires are always lurking. Forest fire prevention for ​​9,200 ha of pine forests is a real challenge for Southern Paper Materials Company. No forest fire has been seen since 1997 thanks to the company’s effective preventive measures. In addition, the company has allocated its forests for farmers and signed commitments with local people to fire prevention. With its solutions, the forest area is maintained and green coverage is kept for Kon Tum province to date.
N.Nga
Source: vccinews.vn

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