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文章

2023年6月2日

作者:
Joonwoo Park, Sisaon (South Korea)

Indonesia: Moorim P&P suspends further investment in pulpwood plantation following FSC request

[Unofficial translation provided by Business & Human Rights Resource Centre]

"Moorim P&P 'suspends further investment in Indonesia pulpwood project'...at request of Forest Stewardship Council," 2 June 2023

Moorim P&P's plan to secure cost competitiveness by vertically integrating pulpwood, pulp, and paper business has been stopped as the Forest Stewardship Council (FSC) requested that the business be suspended. Moorim P&P will reportedly turn its attention to other regions to run the pulpwood plantation business.

According to the information available on the Financial Supervisory Service's electronic disclosure system in June 2, Moorim P&P publicly announced the previous day that regarding the deforestation project, it has decided to no longer make additional investments in its local subsidiary in Indonesia. As a result, the local subsidiary of Moorim P&P will focus on forest management and conservation activities.

Moorim P&P, the only pulp and paper company in S. Korea making low-carbon paper (certified by the Ministry of Environment), previously announced in April 2011 the 'Investment Plan for Pulpwood Plantation Overseas' for stable production of wood chips, the main raw material for its main products, pulp and paper.

[...] To date, about 30% (7500 ha) of the area available to the company has been planted. However, the project was stopped when the Forest Stewardship Council (FSC) demanded a halt to the deforestation of natural forests.

If Moorim P&P continues the project, it faces the possibility of having its FSC certification, granted by the FSC to products such as wood and paper, revoked. The FSC certification system was established to protect forest resources and promote sustainable forest management and means products with this certification have been produced through sustainable management of forests.

If the company loses its FSC certification, it will have a significant impact on its domestic and international sales, especially exports.

In order not to take this risk, Moorim P&P has decided to terminate further investment in the Indonesian subsidiary's deforestation operations. It prioritized continuing its business activities and minimizing future business uncertainty, even if it suffers immediate losses.

However, it is reported that the company plans to continue to review the investment by looking for additional areas that can replace the existing business sites.

[...]

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