canfor export project. agenda 1.objective 2.company overview 3.potential wood demand in china...
TRANSCRIPT
CANFORExport Project
Agenda1. Objective
2. Company overview
3. Potential wood demand in China
4. Competitive advantage
5. Possible constraints
Objective
Due to current events and new regulations, this project focuses on the growing market of lumber exports to China.
Company Overview
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Company OverviewCanadian company based in Vancouver, British
Columbia.
Marketing offices present worldwide.
Major business units.Wood ProductsPulp productsPulp and specialty kraft paperCoastal operations
Company Overview
MissionProfit + Planet + People
Corporate pillars
Company Overview
Differentiation with a strong vision in sustainability
Sustainable forest management certifications.
Forests licenses.
Potential wood demand in China
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Potential wood demand in ChinaChinese housing market.
Current housing situation.
Potential wood demand in ChinaChinese housing market.
Current housing situation.
Potential wood demand in ChinaCurrent figures
Potential wood demand in ChinaMarket forecast
Potential wood demand in ChinaChinese housing market.
Definitions Short History
Potential wood demand in ChinaState of affairs wood imports
Wood and lumber imported by China from Canada
2004 2005 2006 2007 2008
Chinese Imports of cork and Wood in $US Million
$4,262.1 $4,923.9 $5,790.8 $7,331.5$9,178.
1
(000’s USD)
2004 2005 2006 2007 2008
China 93,313 92,264 102,616 146,282 207,444
Others 13,946,318 12,759,130 11,223,595 8,787,457 6,169,857
Total 14,039,631 12,851,394 11,326,210 8,933,739 6,377,301
Competitive advantage
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Competitive advantage
Over international competitors Canadian lumber perceived as a high quality product (smoother,
cleaner, and can be reused).
Over national competitorsLong-term forest tenure agreements with the 3 provinces.
Competitive advantageOverall
Production capacity.“Responsible” supplier.
Third-party sustainable forest management certification strategy.
Worldwide presence of sales offices.High-skilled labor – patented products (Silvastar®).Distinctive supply chain management.
Competitive advantage
OverallLocations of
operations.
Competitive advantageOverall
Wide product portfolio.
Possible constraints
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1 2 3 40
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
WorldRussiaCanada
2005 2006 2007 2008 1 2 3 40
50
100
150
200
250
WorldRussiaCanada
2005 2006 2007 2008
China Import Volume (m3)
China Import Price (US$)
Source: UN comtrade
Possible constraints
Possible constraints
Uncertainty on Russian export tax schedule.
Uncertainty on Canadian exports restriction
Different product classification and dimension
Trade cost and price disadvantage
Possible constraintsUncertainties on supply.
Foreign exchange exposure and risk
Uncertainties on market acceptance.
Ease of doing business in China
Possible constraints
Possible constraints
Culture difference and development separation
Political coldness
Conclusion
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Q&A
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