By Mark Rushton, Editor, Pulp & Paper International Magazine, RISI
LONDON,
June 16, 2009
(RISI) -
It seems that the secret to all success is innovation, particularly in a downturn such as we have witnessed in recent times. One of the advantages in this industry is that there is a lot of work going on behind the scenes at the supplier end, and there is plenty of help available in shape of new innovations, as well as ways to cut costs. I spoke to head of one industry supplier recently, Paul Allibe, chairman and CEO of the ABK Group, and discovered a healthy and refreshing approach and response to the downturn.
Paul Allibe, chairman and CEO of the ABK Group,
PPI: As an experienced player in the industry, can you give us your view of pulp and paper from where you stand?
Allibe: Today, the pulp and paper industry worldwide is at a turning point of its history, this is owed to the fact that the industrialized countries, those in Europe and the United States in particular, are mature markets. "Gigantism" has occurred and the installation of increasingly large production units has had the consequence of imbalances when it comes to supply and demand. In spite of the closing of many units (be it for the production of pulp or paper or board), and because of the arrival on the markets of emergent countries such as China, many paper mills cannot balance the increase in their cost with the level of the selling prices of most products.
Maybe the solution is to return to units of more reasonable size which would reduce both costs of investment and raw material cost and operating expenses? This would also have the added effect of making it possible to have a certain flexibility to be able to answer to the demand. Today the cost of the labor cannot be reduced any more in significant proportions, whatever the size of the equipment. It would be necessary, in order to find certain profitability, to reduce - as in the agriculture sector - the intermediaries which ultimately burden the selling price of paper. This is valid for Europe and the United States, and to a lesser extent, for the Asian countries.
PPI: So, how are you helping your customers in these precarious times?
Allibe: First of all, we would like to say, "don't panic!" We think that the recession has actually created more opportunities for companies to succeed as long as they are aware of the importance of product reliability and a good pricing strategy. One of our major goals in our business is to help the paper industry as a whole to be successful, and even during tough economic times, we pursue a strategy based on innovation. At ABK we feel it necessary to be creative and to develop innovative ideas on a daily basis, not only for offering high technology products and services, but also for client processes, sales and other internal processes.
So our focus is not only on the equipment and production side of things - which includes specifically designed products to reduce energy and create cost savings as well as environment preservation, waste decrease and maintenance at reduced cost - but also financially, as we help our customers benefit from investment solutions that we have implemented with our banks.
PPI: What areas of the world are important to your company?
Allibe: The group is spread worldwide and served by a network of agents and brokers who represent and expand the activities of our six companies in most industrialized or emerging countries; for instance, we are one the major suppliers of paper machines in South-East Asia (China, Indonesia), but our market development process also focus on regions where the paper and board industry is promising like Russia, India or the South American continent. And although many competitors concentrate their resources on the greatest opportunities, ABK's marketing strategy is centered on the key concept that customer satisfaction is the main goal, and that is the way to increase sales and achieve a sustainable competitive advantage.
PPI: Energy, and the saving of it has become a major factor in the last few years, as has the environment, what is ABK working on in those areas?
Allibe: We are all aware of the fact that paper production is a complex task requiring large amounts of water, heat, and energy. We also perfectly understand the emphasis of our customers on environmentally friendly production as well as costs and waste reduction; for this purpose and for many years now, therefore, our group's main focus has been to develop energy-saving and highly efficient equipment and to deliver high-end services and superior support through technology, experience and innovation.
With the acquisition in 2002 of the company Madeleine Drying Solutions (M.D.S.), subsidiary of the ABK Group based near Lille, in France, we can offer a wide range of air trough dryer blowers, ventilators, hoods, exchangers, and economizers that reduce energy consumption. Also, thanks to IR.D.S. (Infrared Drying Systems), the group is able to supply complete coating sections, with efficient products based on the infrared technology, as well as reliable components so to secure the high quality of coated products and maintenance at reduced cost.
"We are all aware of the fact that paper production is a complex task requiring large amounts of water, heat, and energy"
PPI: So, are you feeling confident about the future of ABK in industry in the future?
Allibe: Our slogan "our experience for your performance" is not a vain word but it reflects what makes us different from major suppliers of equipment for the paper and board industry. As a family-owned company, we strongly believe that success is not just a question of business strategy but also of human relationships at all levels, with our employees, our partners, our suppliers and of course with our customers. They all deserve attention and respect, as well as quality and reliable equipment at affordable prices, the main goal being the improvement and the performance of production processes, and ultimately the blossoming of paper mills in any part of the world.
Ahead of this mission, ABK Group has the great advantage of being a medium-sized company, a good shape for being reactive and for absorbing economic crisis without being obliged to sacrifice part of its resources and expertise.
ABK at a glance
ABK was founded in 1952 by Aimé Allibe, the current chairman's father, to promote and manufacture patented refining equipment named "Alligator", and in general, stock preparation equipment. Originally named Ateliers Allibe S.A, the company has over the years gradually extended its services and gained in expertise in the design and the manufacturing of complete paper machines. The company has successfully benefited from the experience attained by partnerships with three well-known and talented companies which have had a very strong influence on the paper and board industry - GL&V, Beloit and Küsters.
Today, the ABK Group is a family-owned corporation comprised of around 100 people and a turn over of around Euro 22 million, and providing jobs for about 120 main subcontractors in the European Union. The group is organized into six subsidiaries, each of them being responsible for product units as well as customers' processes covering new equipments, rebuilds and services:
ABK Machinery for engineering, customizing and production of new equipment and/or revamping.
ABK Services for start-up and maintenance training, preliminary survey.
ABK Automation for automation and process control.
M.D.S. (Madeleine Drying Solutions) for paper industry ventilation and drying systems (hoods, exhaust systems, etc).
IR.D.S. (Infrared Drying Solutions) for complete coating sections based on infrared technology.
HYDRO MOTION for hydraulic and pneumatic equipment (units and control systems) specific to paper and board machines.
More information available on http://www.abkmachinery.com/