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SHAPE UP Brighter Brighter futu� futu� futu� futu� futu� futu� futu� futu� futu� futu� futu� futu� FOR US futu� RETAIL SECTOR The Swedish pulp and paper industry invests in green research. 4*SCA SHAPE [4*2007] ■ While many major players reported lower earnings than expected in September, the retail market overall grew more than expected during the month. Statistics from the US Department of Commerce indicate a growth rate of 0.6 percent, double the forecast. Concerns about housing loans in particular had raised doubts about demand, but American consumers still appear to be willing to spend. PHOTO: ISTOCKPHOTO IKEA INVESTING BILLIONS IN NEW STORES ■ Ikea will invest several billion dollars in new stores over the next few years as its drive to lower costs continues, Ikea’s new chairman, Göran Grosskopf, says in an interview with the Swedish business daily Dagens Industri. Increasing global competition and more intense price pressure account for the move. “It’s because of other furniture chains, DIY chains like Home Depot and rapidly growing retail giants like Wal-Mart, which are expanding their product range,” Grosskopf tells the newspaper. “We see really great potential for growth and will invest heavily, among other things in a number of new stores in both existing and new markets,” he says, mentioning India as a possible market. Carrefour to open hypermarket in Bulgaria ■ THE FRENCH COMPANY Carrefour, Europe’s largest retail chain, is opening a hypermarket in the Bulgarian city of Varna on the Black Sea. The store will occupy 100,000 square feet. Carrefour is leasing the space for 30 years from the Scottish property development company Miller Group. PAPER INDUSTRY GOOD AT ENVIRONMENTAL PROTECTION INVESTMENTS The pulp and paper industry, together with the chemical and metal industries and the energy sector, accounts for 70 percent of all environmental protection investments in manufacturing, the Swedish National Institute of Economic Research reports in an analysis. The analysis also shows that the companies invest in both corrective and preventive measures.
PHOTO: ISTOCKPHOTO Record growth in Poland less than expected RECYLED FIBER IMPORTS TO CHINA Million tons 3.7 ■ Poland’s retail sector grew 14.2 percent in September compared to the same period in 2006. Despite the sharp increase, growth was still lower than the 16.5 percent forecast. Analysts predict that the strong growth in Polish private consumption will slacken, the news bureau Interfax reports. CHINA SCOURING EUROPE FOR RECYCLABLE PAPER 6.9 12.3 19.6 21-23(est.) 2000 2002 2004 2006 2007 SOURCE: SPCI/SVENSK PAPPERSTIDNING BELIEVES IN PRINT ■ GOOGLE, the publicly traded search engine, surprised the market when a company representative said the company sees major potential for traditional print advertising. Speaking to a large gathering of appreciative newspaper managers at the Newspaper Association of America’s annual meeting, Google’s Tom Phillips, head of the company’s print advertising, said he saw a number of opportunities in newspaper advertising. “Print today is an undervalued medium,” Phillips said, noting that newspapers are consumed more intensely than Web pages. The dominant search engines, Google and Yahoo, have both developed collaborations with traditional print newspapers, and Microsoft’s msn has expressed similar ambitions. ■ CHINA’S DEMAND FOR recycled fi ber has increased dramatically over the past seven years. This year, the country is expected to import more than 20 million tons of recycled paper components, up from 3.7 million tons in 2000. The reason for the increase is an expansion of China’s cardboard and packaging industry. Chinese containerboard makers like Nine Dragons and Lee & Man Paper have strengthened their presence in Europe with their own purchasing organizations. The us, which was previously the main supplier of recycled paper to the Chinese, can no longer satisfy the demand for recycled containerboard in China. The increase in Chinese demand mainly affects Britain and the Netherlands, which now have to pay higher prices for the raw material. [4*2007] SHAPE SCA*5
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