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Name Dr Jon RyderCompany Oji Fibre SolutionsPosition CEOHQ Auckland, New ZealandEmployees 1,700

EXECUTIVE INTERVIEW

Packaging potential

The demand for print media might be declining but that certainly doesn’t mean it’s the end of an era for

a company like Oji Fibre Solutions.

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“Like every other industry, pulp, paper and packaging is competitive,” says Dr Jon Ryder, CEO of Oji Fibre Solutions. “Paper in particular, with the advent of digital gadgets such as iPads and smartphones, has significantly changed. I call it the ‘digital compression’ because less and less printing, writing and

communication papers are being used today compared to a decade ago. Due to this, many people look at our industry — manufacturing pulp from wood and then turning it into paper products — and think of it as being under threat. However, it is absolutely the converse; the demand for our products is actually growing in the pulp world. In fact, the industry is growing by about 1.5 per cent per annum.”

Jon explains that this positive trajectory is mainly being spurred by the increasing demand for other products in the sector, namely tissue paper, as well as other packaging materials. “More people are using the internet and making purchases online; however, the products they are buying probably don’t originate from their home country,” Jon says. “Therefore, the product has to get to the purchaser and it has to get to them in a good, workable condition. For this to happen it needs appropriate packaging.”

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This shift in focus is helping the pulp, paper and packaging industry greatly. It’s going through many instances of positive change, and for a company like Oji Fibre Solutions it’s a fantastic place to be.

Oji Fibre Solutions was formerly known as Carter Holt Harvey Pulp, Paper and Packaging (CHH); however, after a joint venture in 2014 between the Japanese-based Oji Holdings and the Innovation Network Corporation of Japan (INCJ), a new company called Oji Fibre Solutions emerged. Based in Australia and New

Zealand, its key operations are to deliver market-leading products and services to its customers with a focus on innovation, advanced technology, R&D, systems and processes.

Jon has a strong professional background in the pulp, paper and packaging industry. He has been with Oji Fibre Solutions as its CEO since 2012. English by heritage, Jon studied for a degree in biochemistry as well as a PhD in pulp and paper chemistry at the University of Manchester’s Institute of Science and Technology in the UK before going to work for UK Paper.

He was the product development manager, a role which later expanded into product development and technical management. In 1999 he moved to New Zealand and worked for CHH as a technical manager, looking after all technical aspects of the pulp

and paper manufacturing process of the company. This experience fast-tracked him to the position of area manager for one of the paper machines, which saw him look after a significant rebuild of its facility. From there he became business unit manager for paper, moved to the Tasman Mill as its manager, and then, in 2006, he left CHH to pursue a role with Australian Paper.

“I went from a single mill accountability to looking after three pulp and paper mills,” Jon recalls. “From that position I was able to become the Group General Manager, looking after the manufacturing assets as well as the sales and marketing of the products produced in those three facilities, plus looking after one other facility.

“Following that I worked for a year in a strategic role for PaperlinX, the owner of Australian Paper, and I had the

unpleasant experience of closing down all of the Tasmanian assets. I then went into another strategic role working with Melbourne Paper Group and Australian Paper.

“In 2012 I came back to CHH as the CEO of CHH Pulp and Paper. Six months later I was asked to also lead the packaging division. I was a part of the team that helped with the divestments of the pulp, paper and packaging assets to the new owners of Oji Fibre Solutions, Oji Holdings — a large Japanese paper manufacturer, and INCJ — a public–private partnership set up by the Japanese Government.”

Due to its parents companies’ long histories in Japan, Oji Fibre Solutions’ operations are very much centered on the culture and philosophies of a Japanese workplace. This means that innovation and being at the

forefront of technology is of utmost importance. Much more than just a paper manufacturing company, Oji Fibre Solutions is firmly focused on what it can achieve in the long-term future for New Zealand,

After a joint venture in 2014 between the Japanese-based Oji Holdings and the Innovation Network Corporation of Japan (INCJ), a new company called Oji Fibre Solutions emerged.

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Australia and the rest of the world. Oji Holdings is one of the big two pulp and paper manufacturers in Japan and over the last few years it has been growing, mainly via overseas expansion. Very heavily concentrated in South East Asia, the organisation also has assets in Brazil, North America and Europe.

Its catchphrase is ‘Beyond the Boundaries’, which rings true when looking at its current growth strategy. And it’s not just pulp, paper and packaging that it has activities in, the business has other assets as well, positioning it as a formidable player in a variety of sectors.

Having this backing brings Oji Fibre Solutions many great benefits. “We now have a parent company that understands pulp, paper and packaging extremely well,” Jon says. “Oji Holdings is the fifth largest pulp

and paper manufacturer in the world. We have an owner that is investing in our business and intending to grow it in both Australia and New Zealand. There truly is a very strong synergy between Oji Holdings and our company, Oji Fibre Solutions, here in New Zealand; that is why we are focused on safety, on the environment and on making sure we are not only cost competitive, but also deliver a service solution to our partners.”

The pulp, paper and packaging industry is built on the back of radiata pine plantations, which indicates one of the strategic advantages to Oji Fibre Solutions being based in New Zealand. Importantly, it is an environmentally sustainable raw material for companies like Oji Fibre Solutions to use.

“Many customers around the world are not only focusing on their carbon

footprint,” Jon says. “While carbon emissions are still very important, people are now concerned about wider environmental and sustainability issues. Radiata pine forests in New Zealand hold sustainability certifications and are regulated under national legislation providing a great, sustainable option for us.”

Oji Fibre Solutions is also committed to reducing its carbon emissions. More than three quarters of the energy it uses comes from renewable sources, including wood processing residues, kraft black liquor and geothermal steam.

For Oji Fibre Solutions, working with like-minded customers and partners is important. And as a global commodity provider, it tries to ensure it has a balanced network of corporate allies to deliver different products in different

geographies to its customers. “If we were solely focused on supplying pulp to the newspaper industry we would be in a lot of pain at the moment,” Jon says. “While we still have some newsprint customers, we have a balanced portfolio where we provide pulp to manufacturers of tissues, specialty grades, packaging grades and so on.

“The other thing we are very focused on is developing relationships with our customers. We try to be less of a transactional business to them,

“The longer-term vision for the company is to reinvest in ourselves and make ourselves scalable in the global commodity for the manufacture of pulp.” - Jon Ryder

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and more of a relationship-based supplier that understands their needs and provides them with value.

“Along with that goes the fact that we are sustainable, have a good safety record and a reliable supply chain. We are producing a commodity that has a value proposition the customer buys into. I have a single philosophy that it is not just about supplying an experience to your customer, you have to be working closely with the integrators of that relationship — your suppliers — to

make it a success. Every single link in the chain has to be solid. I look after my customers but I also look after my suppliers. There is just as much focus on partnering with the right suppliers as there is on partnering with the right customers.”

Jon’s overall vision for the future development of Oji Fibre Solutions is simple, he wants it to grow profitably while looking after its people and the environment.

“We need to be making sure we have a future with sustainable assets that are profitable,” Jon says. “To achieve this there are a few things we are heavily focused on.

“One is improving our equipment reliability, which essentially means better and more appropriate asset deployment and maintenance. I want

more reliability out of the assets we already have and that will in itself help reduce costs. The longer-term vision for the company is to reinvest in ourselves and make ourselves scalable in the global commodity for the manufacture of pulp. As part of that, we may come to a point of building a new pulp mill to help us compete at a lower cost base, within the next decade.

“There are currently more modern and scalable assets being deployed globally; new pulp mills are springing up in places like South America and Europe which is resulting in an oversupply of pulp. In addition, the old assets that used to make newsprint or writing grade paper are being repurposed into packaging substrate manufacturing paper machines.

“This is another situation where there is an oversupply of pulp, and potentially

an oversupply of the packaging substrate which puts a pricing pressure on the paper grades we manufacture. There is certainly growth there but there is still a bit of pain to go through over the next two or three years as supply and demand balance each other out again.

“Another priority for me is people; our talented group of employees. The operations at Oji Fibre Solutions are very technically complex and the process is all driven by our people.

“We need to keep our people safe and we are focused on improving the health and safety of our workplace, including adapting to new legislation in New Zealand.

“It’s not just about looking after our equipment, it’s also about looking after our people and training them well.”

“It is not just about supplying an experience to your customer, you have to be working closely with the integrators of that relationship — your suppliers — to make it a success.” - Jon Ryder

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