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Too small Swedish presence in Asia

2012-12-11 The paper industry is facing challenges as global volumes of printing paper are in steady decline. New capacities of paper grades, including premium and liquid packaging board, are coming on stream in China – this is likely to make exports to China from Europe increasingly diffcult, according to Peter Lennhag, Asia Pacific Executive Advisors.

Most leading Swedish paper companies still have only a small presence

in Asia. Far too many rely on trading companies to carry out their

business across Asia. For SCA, only 2.2% of total sales are from Asia.

In 2011, ten major Swedish companies had more than 25% of their total

sales in Asia Pacific. No paper companies included. Unfortunately far

too many do not yet have a strong position in Asia – making it

impossible for them to benefit from the high market growth in this

region. Peter Lennhag believe that companies who fail to participate in Asia’s growth face major risks as they are likely to become increasingly marginalized within their industries. "In addition, private investors will increasingly avoid investing in any laggards who hold on to a slow-growth Europe-centric strategy".

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