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68 | L&L<br />

With advanced scientific research and<br />

development, ACF has decreased the<br />

Eucalyptus plantation cycle to six years on<br />

the first planting rotation, and has developed<br />

nurturing techniques to grow harvestable trees<br />

in as few as four years in a subsequent rotation<br />

using coppicing, a traditional form of forest<br />

management whereby new trees are grown<br />

from the remaining trunk of a cut down tree.<br />

In total, ACF has the capacity to produce five<br />

million tons of wood annually.<br />

The Hainan Central Nursery is where the<br />

magic happens. Scientists closely monitor the<br />

development of cross pollinated tissues and<br />

seeds, led by Dr Wending Huang, deputy CEO<br />

of APP China Forestry, who holds a degree<br />

from China’s Nanjing Forestry University and<br />

a PhD in forestry ecology from the University<br />

of Helsinki. Employees can be seen analyzing<br />

the tissue cultures, growing them into cuttings<br />

ready to go for planting in the nursery’s 70<br />

hectares of land. This location is capable of<br />

producing 100 million cuttings each year,<br />

and a smaller ACF nursery, Guangxi Central<br />

Nursery, can produce 90 million cuttings<br />

annually on 65 hectares. ACF cultivates<br />

mostly Eucalyptus trees and also Acacia,<br />

Pinus and Poplar.<br />

The company explains that the lands the<br />

government approves for timber growth are<br />

typically undesirable for other agricultural use,<br />

like sandy areas and low rainfall regions. The<br />

firm must then go through a multi-step process<br />

of engaging the landowners, producing a land<br />

audit and submitting a request for approval<br />

(that can be rejected). If the government<br />

agrees to the proposal, and believes that the<br />

locals will also benefit, a land tenure contract is<br />

signed between the government and ACF.<br />

All land in China is owned by the State, or<br />

what it calls rural collectives, and plantations<br />

are managed either by renting land from the<br />

LABELS&LABELING<br />

collectives in a profit sharing scheme,<br />

or through a joint venture with the<br />

landowners.<br />

The organization and planning for<br />

the development of these plantations<br />

is highly complex. SAP software<br />

creates profiles of each planting<br />

zone to ensure proper raw materials<br />

management, planting, harvesting,<br />

road construction and maintenance,<br />

and to assist the company in better<br />

understanding the terrain so the best<br />

saplings with the right resistance are<br />

planted in the most beneficial areas.<br />

This software has allowed ACF<br />

to establish its own chain of<br />

custody system to ensure only its<br />

bio-engineered trees are harvested<br />

and delivered to the mills. Tracking<br />

systems map out best delivery routes.<br />

Pre-harvest inventory measurements<br />

are taken and trees are stacked and<br />

locked on trucks for verifiable delivery.<br />

Once delivered to the mill, the weight is<br />

crosschecked with site records and the<br />

delivery mileage is verified.<br />

ACF regularly performs internal<br />

and external audits of its systems,<br />

such as runoff and land mineral<br />

measurements, to ensure conformance<br />

to national environment regulations,<br />

which, contrary to popular belief, are<br />

comparable to European standards.<br />

This plantation-based fiber supply is<br />

critical to the sustainable evolution of<br />

China’s domestic paper market. Yet<br />

the amount of fiber currently produced<br />

by ACF does not meet the capacity<br />

requirements of APP’s large pulping<br />

facilities. And this well-managed timber<br />

resource comes at a higher cost than<br />

international averages.<br />

HAINAN JINHAI PULP<br />

AND PAPER PLANT<br />

The vast Hainan Jinhai Pulp and<br />

Paper plant, located in the Yangpu<br />

Economic Development Zone, is a<br />

key part of APP China’s integrated<br />

pulp and paper production strategy.<br />

This facility is also located on Hainan<br />

Island off the southwest tip of China,<br />

spreading a whopping 400 hectares, or<br />

8,000 acres. Six thousand employees<br />

run the nation’s largest pulp line<br />

and a paper line which produce 1.2<br />

million tons of pulp and 900,000 tons<br />

of paper each year. The first phase<br />

of development saw APP invest<br />

10.5 billion RMB in 2005 to build a<br />

bleached eucalyptus kraft pulp line<br />

with an annual capacity of one million<br />

tons. The line requires both short fiber<br />

wood – like the hard wood Eucalyptus<br />

and Acacia trees found domestically<br />

– and long fibers only found outside<br />

the country, which means making the<br />

plant remains dependent on oversees<br />

pulp producers in Canada and Brazil to<br />

make quality fine paper.<br />

Last September, the company<br />

commissioned a 13.6 billion RMB Voith<br />

fine paper machine with an annual<br />

production capacity of 1.6 million tons.<br />

The behemoth is the largest in the world,<br />

428.18 meters long (half a kilometer),<br />

10.96 m wide and housed in a building<br />

660m long. It takes 20 minutes to walk

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