AN INCREASE IN PER CAPITA INCOME LEVELS AND ECONOMIC GROWTH IN ASIA WILL PROVIDE A BIG OPPORTUNITY FOR GEORGIA-PACIFIC CORP., A PULP AND PAPER PRODUCER, BECAUSE PAPER USE TRACKS THE GROWTH OF THE ECONOMY, SAID CLINT KENNEDY, SENIOR VICE PRESIDENT OF THE ATLANTA-BASED COMPANY.
AS A COUNTRY’S ECONOMY IMPROVES, HE TOLD SOME 200 ATTENDEES AT THE ATLANTA CHAMBER OF COMMERCE’S INTERNATIONAL ECONOMIC BRIEFING ON JAN. 26, EDUCATION LEVELS RISE, AND CONSUMPTION OF “CULTURAL PAPERS” SUCH AS NEWSPAPERS AND BOOKS INCREASES.
MUCH OF THIS ECONOMIC GROWTH WILL COME FROM EXPORTS, HE ADDED, AND THE NEED FOR QUALITY PACKAGING FOR THOSE PRODUCTS WILL PROVIDE GEORGIA-PACIFIC WITH MORE MARKETS.
MR. KENNEDY SAID THAT HE EXPECTS THE ASIAN REGION TO BECOME THE LARGEST WORLD CONSUMER BY THE EARLY PART OF THE 21ST CENTURY, LED BY CHINA, WHICH HAD A GROWTH RATE OF MORE THAN 9% IN 1995.
THE PERCENTAGE OF THE CHINESE PAPER MARKET THAT IS OPEN TO GEORGIA-PACIFIC IS LIMITED, THOUGH, HE SAID, BECAUSE ONLY 20% OF THE PAPER USED IN CHINA IS MADE FROM THE IMPORTED VIRGIN FIBER THAT GEORGIA-PACIFIC PRODUCES. THE OTHER 80% COMES FROM RECYCLED MATERIALS OR NON-WOOD FIBER SUCH AS BAMBOO OR SUGAR CANE.
ALSO, THE INCREASING ATTRACTIVENESS OF THE MARKET WILL BRING IN COMPETITORS AND LOWER THE PROFIT MARGIN FOR GEORGIA-PACIFIC, HE CONTINUED.
TO INCREASE PROFITS AND COMPETITIVENESS, GEORGIA-PACIFIC WILL CONCENTRATE ON LONG-TERM STRATEGIC ALLIANCES WITH FEWER CUSTOMERS, “INSTEAD OF JUST SELLING EVERYTHING TO EVERYONE,” HE SAID.
A.J. ROBINSON, PRESIDENT OF PORTMAN HOLDINGS, AN ATLANTA-BASED REAL ESTATE AND ARCHITECTURE FIRM THAT DEVELOPED THE SHANGHAI CENTRE IN CHINA, WAS ALSO ENTHUSIASTIC ABOUT THE POTENTIAL OF CHINA, “A THIRD-WORLD ECONOMIC SUCCESS STORY.”
HE WARNED LISTENERS THAT CHINA HAS “NUMEROUS POLITICAL PROBLEMS,” BUT ADDED “CHINESE LEADERS KNOW THERE IS A NEED FOR MASSIVE FOREIGN INVESTMENT FOR ECONOMIC DEVELOPMENT.”