Background

They are characterized by:

• Technically complex
• Significant equipment and material which may need to be imported
• Products usually sold on the open market
• Earns foreign exchange for the product which is sold on international markets.
• Pulp and paper prices tend to be cyclical over several years
• Production which usually increases rapidly to the design capacity where it stays for the duration of the project

 

How Promoter handles Pulp and Paper Projects

Promoter reproduces the cash flows for projects which produce either pulp or paper or a combination of the two

Typical Project Cash Flows

The above chart illustrates the cyclical trend in pulp and paper prices.  The same tends to apply to the wood feed