About: David Dostal - Managing Director
The customer's decision to invest into the paper industry is influenced by different indicators than in other industry branches; each type of industry has its own particularities. When we evaluate the main reasons why the customers buy our equipment: those are often specific technological
1. Pulp and Paper is known to be a unique and oldest sector whose needs, demands and dynamics are different in many ways compared to other industries. What is your perception in this regard?
The customer's decision to invest into the paper industry is influenced by different indicators than in other industry branches; each type of industry has its own particularities. When we evaluate the main reasons why the customers buy our equipment: those are often specific technological requirements that do not appear in other industrial branches. Recently, one of the most important technological parameters that customers demand is the energy consumption of the purchased machinery. Requirements on lowering consumption of the raw material necessary for the paper production, e.g. water, power, steam etc., come as a matter of fact. Another essential feature is the whole procedure of primary fiber processing and lowering the amount of fiber in the reject so that the whole paper production process was as efficient and profitable as possible. From the economical point of view, key factor for our customers remains the price, the possibility to get a credit for the project, and last but not least the quality of provided sales and technical services. To get a contract, an essential matter is especially the offer complexity and reference projects.
2. For last 60 years, PAPCEL has been a leading provider of innovative solutions in Pulp and Paper Industry. Would you like to share some insights on the companys growth and expansion in this sector?
Probably the most important thing is the maintaining of personal contact with the customer and gaining the trust in the company abilities to deliver a comprehensive solution for their investment plan. A direct communication during problem solving and total trust between the two teams when complying basic tasks, e.g. during the paper machine construction, are essential. A close contact with the customer is our priority, and naturally customers value an ability of a supplier to offer complex services, i.e. not only to deliver the machinery, but to offer technological consultancy, financial support, being present during the bank meetings etc
3. What are your views on Indian Paper Industry practices? What are the major challenges? What action plan would you like to suggest to Pulp and Paper Industry manufacturers.
In India, there are many exporters not only from Europe but from Asia and America who see it as one of the key and very interesting markets. Those companies which are trying to penetrate this market are attracted mainly by a stable economic situation and a fact that many industrial branches are indicating growth. One of the most significant branches is the paper and pulp processing and producing segment. Possibilities of importing machinery are given historically by the number of paper productions in the country, population and high paper consumption per person. Due to the development of other industrial branches such as food, packaging and chemical industry, there is an assumption of growing paper and cardboard consumption. Limiting for a great deal of European importers is a significant pressure on the pressure prices, i.e. high competitive pressure, especially of the local producers who can offer lower production overheads. A significant factor for European companies might be a merger with local producers. Essential thing is to create one's own sales net. Business success in India depends on a good quality distribution net, e.g. via sales representation, etc.
4. What kind of value added solution you offer to the Pulp and Paper Industry? Your plans for new product developments? What are the opportunities you find in Pulp and Paper Industry?
The goal of PAPCEL is to offer a complex customized solution for each of our customers. That is our added value – to offer complex services that do not include only machinery delivery, but also involve an added value for the customer: a technological know-how, or economical services. Many of our customers are currently using the possibility of technological consultancy, we also offer business plan consultations and feasibility studies of a given project. Our technical development is now focusing especially on challenging the economic aspect of our machines. In the area of individual machine development for a paper machine line, we have aimed on film press and shoe press development. The greatest opportunity in the paper industry branch is for us acquiring new customers and new markets. For instance, India presents a challenge for our company; our goal is to keep on delivering and to get the first project for a paper machine reconstruction.
5. How can you create product differentiation by using IT, What makes you so different from your competitors in terms of developing these products?
Our designing department uses the most recent software for machinery projection and for various technological calculations, e.g. dynamic load, stock flow, etc. We have our own design department and we cooperate with engineering studios. We use software based on 3D modeling – our customers highly appreciate if we present their installations in 3D models.
6. ROI is the first question before finalizing a technology/equipment. Kindly justify the value on investment in Pulp and Paper Industry?
The return on investment is an essential criterion for each investor, or a businessman when deciding whether to invest. That is the case of our greatest projects such as paper machine construction in Russian Federation, where this equals a key criterion of the whole investment. Most of those projects are financed through Czech or local banks. It is not possible to finance a project when you do not know the return on investment, i.e. the moment when you start making money. That is one of essential moments of each business, and our sales department evaluates this carefully when creating a business plan for a business project. It is the most important criterion for the customer.
7. Looking at your company figures to date, you have shown growth every year. What are the reasons for prominent success every time?
The close contact with customers is essential. We are successful in gaining their trust in our delivery abilities and the customers keep coming back to us. In last five years, we have managed to win big investment projects with a financial volume exceeding 20 mil. Euros. We diversify our revenues; we are not dependent only on sales in one market. We have a wide net of sales representatives and because of that we are able to conclude interesting contracts in countries outside Russian Federation, we have been successful in Turkey, Egypt, Belarus, etc.
8. Emerging markets like India & other Asian regions are currently witnessing faster maturity in Pulp and Paper Industry towards adoption of IT driven systems and sophisticated technology applications. How do you foresee opportunities in such markets and what are your strategies to expand business in these markets?
It is essential to offer to the customer a quality technological solution to their problem. The key to success is a solution that is innovative and well-developed. Such a solution is for many customers one of the most important reasons for the purchase. It is very problematic to break through in Asian countries and in India with a high-quality technical solution for a reasonable price. There is a high pressure from the part of investors who compare the machinery purchase prices with local producers and that presents often an insuperable obstacle for the European suppliers, and also a main reason for their inability to assert their offers. Our goal is to gradually find a solution and to combine the production with the local Indian market. That is one of possible foundations to build our success on.
9. Pulp and Paper Technology (www.pulpandpaper-technology.com ) is a connecting point for buyers and suppliers across the global Pulp and Paper industry. Used daily as means of creating partnerships and as a point of reference by professionals within the pulp and paper industry, this comprehensive resource supplies the latest news releases, detailed information on industry projects, event information and careful segregation of products and services. What do you think about our websitewww.pulpandpaper-technology.com which promotes & brands Pulp and Paper industry today on such a wide scale?
Your website is full of information and recent data from the field of the paper industry. It is one of the best-maintained websites regarding the extent and depth of presented information. It helped us in the past to spread the awareness about our company, especially in Asian and Middle Eastern countries. It is good choice for promotion of references, company news, etc.
About: David Dostal - CEO
PAPCEL has been active in papermaking industry since 1950. During the last ten years, we have carried out a vast array of projects the value of which exceeded EUR 40 million. We belong to suppliers of complete paper mills and we are able to offer our customers a wide range of highly appreciated services. The PAPCEL Group’s customers are worldwide. We are active on the international basis and we are able to offer our services in complete turnkey "packages".
1. Please explain the success story of PAPCEL AS and share your views on how the company has ranked among the TOP 100 Czech companies?
PAPCEL has been active in papermaking industry since 1950. During the last ten years, we have carried out a vast array of projects the value of which exceeded EUR 40 million. We belong to suppliers of complete paper mills and we are able to offer our customers a wide range of highly appreciated services. PAPCEL collaborated on many investment projects with significant Czech financial institutions like the Czech Export Bank or the EGAP insurance company substantially contributing to the completion of the customers’ investments. The company’s growth and success were appreciated; and yes, nowadays we are a highly evaluated significant Czech company counted among a hundred of the best Czech companies.
2. What excites you most about Papermaking industry and what were the most important achievements, recognitions for PAPCEL AS?
Papermaking industry is a very specific sector requiring as well as the other ones considerable machinery suppliers’ attention in terms of the machinery development and finding new ways how to help the customers operating papermaking lines "simplify" their day-to-day life. It is the interesting branch experiencing a permanent process of improvement. The today’s technologies arising on the market belong among the "high-tech" ones and in the future, we can expect a very significant advancement as to the offer of real state-of-the-art concepts.
As mentioned above PAPCEL carried out several very interesting projects. The most essential one for us was building a turn-key paper mill for a customer in Belarus actually supplied with a complete mill including structures and a boiler house. However, I must not leave out other projects of complete paper machines manufacturing both packaging papers and tissue.
3. How is PAPCEL AS making an impact in the papermaking machinery?
We are one of the major suppliers in the industry. Nowadays, PAPCEL is comprised of several companies joined to create a strong group offering partners state-of-the-art solutions. Our group incorporates the Italian companies PMT S.r.l. and ICONé S.r.l. (former GapCon tissue S.r.l). PMT is an experienced and highly valued supplier of technologies for packaging papers and special paper grades, ICONé are tissue professionals. Altogether we offer a complete package of deliveries from stock preparation lines to paper machines to papermaking auxiliary chemical plants and naturally to professional engineering services. We endeavor to offer the customers concepts solving the best ways their operational problems. Personally, I suppose that our customers appreciate expertness we approach elaborating our offers with.
4. Please share your future expansion plans and vision for PAPCEL AS?
The largest number of inquiries is now coming from the market segments of packaging grades, printing & writing papers and tissue. Currently, we are trying to maximally utilise the product potential we have obtained having acquired the PMT S.r.l. and ICONé companies. We are doing our utmost to develop our business activities in Asia, in Americas, naturally in the regions of Eastern and Western Europe. Our strategy and vision include the development of regional sales agencies supporting our direct sales. Nowadays, our companies offer really state-of-the-art concepts of headboxes, top formers, shoe presses, we have outstanding drying and coating technologies. Our future aims are focused above all on our ability to offer our customers solutions exactly corresponding to their needs and to help them improve the economics of their operations.
5. How would you describe today’s role of PAPCEL AS in the international market?
The PAPCEL Group’s customers are worldwide. We are active on the international basis and we are able to offer our services in complete turnkey "packages". We employ specialists experienced in the management of major international projects with rich hands-on knowledge and skills of paper mill operations. We are a strong player in tendering and bidding procedures. We communicate and collaborate with major papermaking groups evaluating our experience. We invest in innovation and observe market trends utilised in our offers. Due to our comprehensive production programme and the ability to communicate on the international basis we belong to the important and strong suppliers.
6. What is the scope for PAPCEL’s Paper & Board products in papermaking machinery? What are your future strategic plans to overcast your competitors?
Nowadays, the Group offers actually a complete machinery portfolio for manufacturing packaging paper grades, special grades like decor paper, P&W grades, safety papers and naturally for tissue making. We offer technologies for coated/uncoated boards. We are turnkey suppliers of complete papermaking machinery. Our paper machines are equipped with systems for preparation, storage, and dosing of starch and chemicals. All the machines are delivered together with complete stock preparation lines and approach flow systems.
In the Group timeline, we carried out more than 1000 rebuilds, we built a completely new paper mill including structures and a boiler house and we accomplished more than 25 green-field projects. We offer head boxes of modern concepts, top formers; we have several references of press part rebuilds using shoe presses. Our production programme includes complete drying, coating and sizing systems, starch surface or stock dosing equipment (film presses) and calendars. Besides reelers and winders, we are able to offer and deliver wrapping machines and systems for transport of finished rolls to loading bays.
7. Please share your experience in showcasing PAPCEL products at ‘CIDPEX 2018 – China International Disposable Paper Expo - Nanjing Tissue’ held in Nanjing, China.
At CIDPEX, we introduced ourselves as a company group together with PMT and ICONé and presented our tissue machinery production programme.
Actually, the tissue segment is going to be the key one for us in the future. We have a unique concept of the EconPRESS NExT shoe press working now very successfully for example in the Argentinian mill Papelera Samseng. Compared to the original machine conventional configuration operated in the mill for the first three months, the significant vacuum and refining energy decrease were achieved. The new concept is fully and highly functioning and it is suitable for all the customers considering rebuilds of their tissue machines.