Showing posts with label Eucalyptus plantation concession in Cambodia. Show all posts
Showing posts with label Eucalyptus plantation concession in Cambodia. Show all posts

Wednesday, March 24, 2010

Eucalyptus a hidden cause of Southwest China's drought

March 24 2010
By Chen Chenchen
Source: Global Times

Drought-plagued Southwest China is witnessing a bitter lack of water.

Wang Xuefeng, deputy director of the Climate Center of Yunnan Province, says the drought is a low-probability event. "It's like wining a prize in the lottery. In the long river of history, there's always one year in which such a drought takes place. If you think of it this way, things get much simpler," he said.

Is it really that simple? Though experts are still arguing over the causes of the worst drought in a century, the vast eucalyptus forests throughout the region are at least one hidden cause.

After Sinar Mas Group and Storan Enso, two leading paper-making manufacturers, launched projects in southwestern China in recent years, fast-growing eucalyptus trees have been massively promoted and planted, wiping out vast indigenous forests and natural weed trees.

Currently in Wenshan, Simao and Lincang, Yunnan Province, eucalyptus forests cover more than 20,000 square kilometers, in the wake of deals between Sinar Mas Group and local governments.

In Wenshan, Yunnan Province, despite the worries voiced by scholars from the very beginning, local officials showed great passion toward Sinar Mas Group's $1.8 billion investment, which was expected to bring 12,000 employment opportunities and annual value-added tax of 42.5 billion yuan ($6.22 billion).

Farmers, lured by higher pay, also joined the gigantic movement to plant fast-growing eucalyptus.

Nevertheless, the impact of the movement has been destructive. Eucalyptus, called the "despot tree" by locals, has gradually drawn out water and nutrients in the soil, and inhibited weeds, shrubs and herbal medicines. Animals can barely live on such bare land. And the special chemical fertilizer used in soil heavily pollutes water quality. In addition to the current drought, more unimaginable ecological costs are still ahead.

Due to its potential destruction of vegetation and water sources, Japan, Australia, Vietnam and Cambodia have all banned massive planting of fast-growing Eucalyptus to avoid ecological calamities. New Zealand also removed its previously planted mas-sive eucalyptus forests. Sinar Mas Group and Storan Enso, blamed for destroying ecological forests across the world, turned to China, well known for its emphasis on rapid economic development.

It's time for China to take action too.

Destructive eucalyptus forests should be removed, making room for ecologically sound forests. Paper-makers and local officials, who caused the situation with profit-oriented thinking, are now obliged to change it.

Local governments can provide these manufacturers with fund compensation and preferential policies in a bid to encourage them to change their current production mode. They should also urge the paper-makers to stop planting eucalyptus and help remove the destructive trees within a certain period.

Updating current paper-making practices is an urgent need, environmentally friendly paper-makers are called for, and wood resources should be used in a sustainable way.

Friday, May 09, 2008

Siam Cement Group eyes concessions in Laos, Cambodia

Friday May 09, 2008
NAREERAT WIRIYAPONG
Bangkok Post


Siam Cement Group (SCG), the country's largest industrial conglomerate, will seek concessions for eucalyptus forestation in Laos and Cambodia to secure raw material supplies for its paper business. Poramate Larnroogroj, managing director of Siam Forestry Co, an affiliate of SCG Paper, said the company had started growing eucalyptus in pilot areas in the two countries.

Siam Forestry decided to look abroad after developing about one million rai of eucalyptus in Thailand, mainly in Kamphaeng Phet, Kanchanaburi and Khon Kaen.

''We have started discussing the possibility of getting the concessions there. It would take two to three years to implement the project,'' he said.

New eucalyptus plantations should be in areas where the wood can be conveniently shipped to SCG Paper's pulp factories in Thailand's northern and northeastern regions, said Mr Poramate.

''We are looking to secure raw-material supplies in the long term after there is no more area for eucalyptus in Thailand,'' he said. ''It is critical to make sure we have enough material for paper production in the future.''

Material security is a major concern as prices of pulp and other raw materials for paper production have surged.

Currently, short-fibre pulp is traded at $725 per tonne, up $40 from the same period last year, while long-fibre pulp prices have risen 15% to $760, pushed by strong demand and tight supply.

Siam Forestry's short-fibre eucalyptus serves SCG Paper's plants while long-fibre pulp is imported from Europe and the United States. SCG Paper has to import scrap paper from the US, Japan, and Singapore because of inadequate supply locally. Imported scrap prices have risen to $250 per tonne from $140 a year ago, while domestic prices are up from four baht a kilogramme to six baht.

SCG Paper, one of the four flagships of Siam Cement, generated total sales of 12.25 billion baht in the first quarter of this year, up 12% year-on-year, thanks to higher product prices. However, net profit fell 20% to 740 million baht due to surging fuel and raw-material costs.