Paper manufacturers are asking the government to pass a law that will prohibit the exportation of raw materials needed to produce paper because it is killing the local industry.
“We are losing money because it is costing us more to import raw materials,” Philippine Pulp and Paper Manufacturers Association (PULPAPEL) president Miguel del Rosario told reporters at the sidelines of yesterday’s 28th Federation of ASEAN Pulp and Paper Industry (FAPPI) held at the Dusit Hotel Nikko.
Del Rosario said recovered paper, the raw material used to make paper, is being sold to China even if the local demand is strong.
As such, he said paper mills have resorted to importing raw materials from the Middle East, the US and Singapore.
However, Del Rosario lamented that imported recycled or recovered paper is more expensive. It costs an additional P7 per kilo to import the raw material.
Currently, Del Rosario said the industry is importing 30 percent to 40 percent of the paper industry’s total demand. He said there is a danger of increasing this if the exportation of raw materials used to make paper continues.
“We are asking for a law prohibiting the export of recovered paper,” he said.
“The government should allow us to restrict the export of waste paper. I hope there would be some laws restricting it because that would be vital to the industry,” Del Rosario said.
Some countries in Europe and Asia have already banned the export of recovered or waste paper in an effort to protect their own paper industries.
Del Rosario reported that a big Chinese paper manufacturer has set up a buying station of recycled paper in the country.
Aside from China, Del Rosario said recovered or waste paper are also being exported to Thailand.
“This compromises what could be a major asset to the competitiveness of the industry,” he noted.
This is because the exported raw material could have been used to answer the local requirements in order to prevent the influx of cheap paper entering the country.
Meanwhile, the FAPPI conference, carrying the theme “Unity Amidst Diversity”, was attended by key playersthe pulp and paper industry across Asia.
Representatives from Indonesia, Thailand, Malaysia, Vietnam, Japan, Korea and Taiwan attended the event hosted by the Philippines.
During the conference, participants discussed common issues and concerns affecting the paper and pulp industry.