Wednesday, May 25, 2011

China’s crackdown on small mills helps Orient Paper

Source: The Paper Stock Report / Paper Recycling Online

The Chinese government claims its mandated closure of hundreds of small, independent paper mills is due to the pollution caused by these mills. Is that the real reason, or is the government squashing small business to the advantage of giant, publicly traded paper making corporations?

May 10, 2011

Double digit growth in revenue and net income for China’s Orient Paper Inc. was partially attributed to the government’s crackdown on small mills. Orient Paper, a leading manufacturer and distributor of diversified paper products in northern China, said first quarter revenue increased 25.6 percent year-over-year to $33.2 million and gross profit increased 60.6 percent year-over-year to $7.8 million, with gross margin of 23.4 percent. Net income increased 55.2 percent year-over-year to $4.9 million.

"Our double digit growth in revenue and net income during the first quarter of 2011 was largely due to higher selling prices resulting from factors related to inflation on commodity costs in China and strong market demand and a supply shortage caused by the government-mandated closure of smaller paper manufacturers in the second half of 2010," said Zhenyong Liu, chairman and CEO.

Due to the loss of an old corrugating medium paper production line since June 2010 to make room for the new production line under construction, revenue from corrugating medium paper amounted to $8.5 million in the first quarter of 2011, representing a decline of 10.5 percent compared to $9.5 million in the year ago period.

Despite a decrease of 9,139 tons in total quantity sold, ASP for corrugating medium paper rose 26.6 percent from $304 per ton in the first quarter of 2010 to $385 per ton in the first quarter of 2011 as a result of increasing customer demand and regional shortage in supply of paper products, caused by government mandated closures of other smaller paper manufacturers Orient said.


Amazon now selling more Kindle books than paper books

May 19, 2011

The demand for paper books is on the decline, according to Less than four years after introducing Kindle electronic books, Amazon’s customers are now purchasing more Kindle books than all print books – hardcover and paperback – combined.

“We had high hopes that this would happen eventually, but we never imagined it would happen this quickly, said Jeff Bezos, Amazon’s founder and CEO. “We've been selling print books for 15 years and Kindle books for less than four years.”


Tuesday, May 3, 2011

Composting Council to search for new executive director

From Composting News, May 2011

By Ken McEntee

Frank Franciosi, president of the U.S. Composting Council, said the USCC board will conduct a nationwide search for an executive director. Present executive director Stu Buckner’s contract expires at the end of 2011. Buckner will be considered as part of the search if he wishes to be.
Franciosi said the USCC board has retained the services of Sterling Martin Associates, a national firm, to conduct the search.
“This will be an open and transparent search that will include our existing executive director, staff and members, as well as individuals within and outside the composting industry,” Franciosi said. “We are confident that Sterling Martin Associates possesses the skills and experience to deliver the leadership that the USCC wants and deserves.”
“The search is due diligence on our part as a board, to see who is available and at what salary,” Franciosi said.
The board in 2010 did a compensation study for the executive director’s position and other positions within the organization. However, he said, salary is not an issue in Buckner’s possible replacement, noting that Buckner’s earnings as executive director are substantially incentive based.
Franciosi said in the announcement that USCC is entering a “new phase of growth.”
He didn’t indicate that the board has any philosophical differences with Buckner regarding the future direction of the organization.
The search process is expected to launch in early May.
Buckner, who previously served as USCC president, was hired as executive director of the struggling organization in December 2001. Since that time, USCC membership has grown substantially and is on a solid financial footing. Net assets as of the end of 2009 exceeded $715,000.
Matt Cotton, who served three years as president, acknowledged the progress made by the organization during Buckner’s leaders, but said conducting the national search “is the responsible thing to do.”