- Business is Booming
Korea has often been referred to as a limitless frontier of opportunity
for foreign companies and investors. The domestic market has adjusted
their strategies and procedures over the years to blend with their foreign
Over the last two years, the Korean economy has suffered a severe downturn,
but the foreign investment index has risen and has also helped to support
companies such as Ja Kyung to be more competitive in the marketplace
at home and abroad.
From the year 2000-2005 Ja Kyung’s business has increased dramatically-from
about 2,700 metric tons of sales in 2000 to over 3,700 tons of total
sales in 2004. This year we expect further increases as our market radically
expands to other regions -particularly India, South America and the
Below is a graph of our growth over the past 5 years. We maintain that
our first-rate product quality and service will always propel us to
great heights in the world chemicals market.
- World News
- China: The final frontier?
Anyone who watched TV in 1966 remembers the words, "Space,
the final frontier." With those four words, Star Trek transported
us into a universe filled with imaginary possibilities. Today, we
face similar opportunities right here on Earth. The place is China
- truly "the final frontier" for business in general and
our industry. No other country in the world harbors as much potential.
But like space, China is not one-dimensional.
What appears promising can be disappointing, while success may be
found where least expected. In a country with 1.3 billion people,
one need not look far to find opportunities. But people are only
part of the equation. The Chinese economy is the real story.
- Good news for pulp
Today, China is the world's sixth-largest economy, and at its present
growth rate, China will surpass the US as the largest economy in
the world in 2040. China is already accountable for 76% of the growth
in world demand for pulp.
But this is just the beginning. Paper consumption in China will
hit 80 millions tons by 2010 and 100 million by 2015. To meet this
need, the Chinese plan to increase paper and board production to
an estimated 22.3 million tons in 2005. It will do this with "New
China" machines that are newer, larger, and run predominantly
on imported fibers.
The good news for pulp producers is that the Chinese currently lack
the capacity to produce enough pulp from higher-quality wood fibers
to meet their needs. Since 1980, pulp imports into China have increased
from 0.5 million tons to almost six million tons last year. For
the short term, then, we have an opportunity to help the Chinese
meet their demand for pulp. Because for all of the upside China
represents, there is a downside.
Just last week, news of a slowing Chinese economy sent a tremor
through the stock market. This tremor signalled that the Chinese
economy is subject to the laws of economic gravity. This point is
not lost on the Chinese government. It is keenly aware of the looming
risks of an overheated economic engine and recently took steps to
eliminate uneven growth due to over-investment in some steel, aluminium,
luxury housing, and auto production.
The concern is that over-investment will produce a dotcom-like collapse
in the Chinese economy, which would undercut foreign investor confidence
and slow further investment. There is also growing concern for banks
overburdened by bad debt.
This is not to say China isn't a force that will continue to transform
the world economy. Nor does this mean our industry shouldn't partner
with China to help that transformation.
What are our responsibilities in such a partnership? First, we must
maintain our focus on safety. No opportunity, no matter how enormous,
should place the safety of workers at risk.
Second, we must maintain our focus on the environment. We must serve
the needs of the emerging Chinese economy in a responsible manner
that preserves the forests for future generations in the countries
that supply pulp to China. When forests are stripped bare and not
replanted, we all share the blame.
Third, when we do invest, we must invest wisely. We need to build
a partnership with China with an eye looking five to 10 years into
the future. We cannot be swayed by month-to-month swings in demand.
Fourth, all parties involved in a trade relationship ? including
the Chinese ? must agree to communicate openly and clearly with
stakeholders. We must talk about and live the principles of free
trade. All too often, we've seen trade relationships hampered by
selfish legislation designed to benefit one group at the expense
of others. We must use our trade associations wisely and ensure
that they support free trade approaches.
Fifth, we must remain open to change. China is a new opportunity
and, like the frontier of space, it will cause us to rethink some
of our cherished suppositions. We are seeing a movement away from
annual fibers toward wood fibers in the production of high-quality
paper and board. We are seeing Chinese customers moving more toward
direct relationships with their suppliers. We are seeing more direct
selling, which means less cyclicality in buying patterns.
These are changes that require us to adapt our business practices
to new models. What we're witnessing in China is an economic miracle
of historic proportions. It truly is "the next frontier."
We must travel through that frontier as partners with China. We
must preserve those things that have made us great while remaining
open to change.
If we do, then we too will accomplish something historic.
- JPMorgan Chase Announces Environmental Policy
JPMorgan Chase, New York announced that it has adopted a comprehensive
policy that applies high environmental standards to the firm’s
global business activities.
As part of JPMorgan Chase’s broad commitment, the firm has adopted
the Equator Principles, guidelines that promote environmental
and social responsibility in project financing. In addition, the
firm will apply the Principles to projects that are $10 million
or above in environmentally sensitive industries, exceeding the
threshold of $50 million set by the Equator Principles.
In addition to the Equator Principles, the company’s new policy
also addresses issues including climate change, sustainable forestry,
the protection of critical natural habitats, illegal logging,
and the needs and concerns of indigenous peoples. Highlights include:
? JPMorgan Chase advocates the reduction of greenhouse gas emissions.
In addition to reducing its own emissions, the firm will work
with clients to develop new financial products that facilitate
emissions reductions, conduct research into the financial implications
of the rising cost of carbon, and deploy investment capital to
businesses that reduce or mitigate greenhouse gases.
? JPMorgan Chase is taking significant steps in protecting biodiversity
and critical habitats by instituting certain "no-go"
criteria in forests whose high conservation values are endangered.
In addition, the firm will not finance companies or projects that
are knowingly engaged in illegal logging.
? The policy is the first of any financial institution to incorporate
environmental risk management into the due diligence process of
its private equity divisions.
"A policy of this magnitude illustrates our commitment to
preserve and protect the world around us," said Amy Davidsen,
director of environmental affairs. "We recognize that the
policies and practices we adopt today will shape not only our
lives, but also those of future generations."
JPMorgan Chase set up its Office of Environmental Affairs in April
2004 in order to evaluate the firm’s own use of resources and
to integrate environmental and social awareness into its risk
management process. The office carefully considered the viewpoints
of various constituents before developing the policy, including
customers, business and community leaders, environmental groups
such as Rainforest Action Network, and a shareholders group, which
includes Christian Brothers Investment Services, Domini Social
Investments, F&C Asset Management, Friends of the Earth, and
Trillium Asset Management.
"Conducting business with the highest standards and supporting
the communities we serve is part of our firm’s culture,"
said William B. Harrison, Jr., Chairman and CEO. "As a leader
in global finance, we recognize our responsibility to the environment
and will support and encourage projects aimed at sustainable development.
This is a policy that our employees, shareholders, and clients
can be proud of."
- Tasmanian paper made from 'roo poo'
to Tasmania will soon be able to buy a new souvenir of their Australian
experience - paper made from kangaroo manure.
"It's a great product for tourists, but it's also something
that gets our eco-friendly message home to a lot of people,"
said Joanne Gair, manager of Creative Paper Tasmania.
The first batch of paper has now been produced, but Ms Gair conceded
that there was one remaining problem - finding a constant supply
of kangaroo and wallaby dung.
"At the moment we are finding it very difficult to get the
quantity of poo we need," she said.
"We are hoping the community will help by collecting poo for
us and dropping it off in plastic bags. New or old, we'll take it
all," she told the Advocate newspaper.
The company estimates that about 400 A4 sheets of paper can be made
from 25kg (55 pounds) of kangaroo manure.
Ms Gair said her idea was inspired by the success of the elephant
dung paper industry in Africa.
"I also discovered that in Scandinavia, elk poo paper is the
stationery of choice in most offices," she added.
"That got me thinking we should create a uniquely Tasmanian
paper from roo poo."
- Technology News
The critical role of lubrication and delivery
By David A. Pierman
Year after year, advancements in equipment and technologies enable
paper machines to meet the ever-increasing demands of productivity.
Although it is not often thought of as "part" of the equipment,
lubrication is an integral component. Lubrication can be a weak
link if not given proper attention, and it has a significant impact
on the life, quality, and productivity of paper machine bearings.
Proper lubrication is essential for all paper machines. Lubrication
serves to carry away heat, reduce wear and friction, minimize debris
problems, and protect bearing surfaces from corrosion. For instance,
wire section bearings require continuous greasing to stop water
ingress. Press section bearings demand high-quality greases and
oils due to the loads encountered. Drying cylinders require lubricants
that can withstand temperatures in excess of 300º F. Just as bearings
have improved in design, proper lubrication selections and practices
must go hand-in-hand to achieve maximum performance.
Almost half of all bearing failures are due to improper lubrication.
Recognizing early warning signs of lubrication problems, such as
increased operating temperatures, lubrication leaks, and unusual
noise and vibration, can help prevent bearing damage.
Options in lubrication
Just as important as proper lubrication levels is selecting the
correct type of lubricant. The most common mediums are oil and grease,
and each serves to meet specific application needs and demands.
Paper machine oils used in bearing applications offer a viable lubrication
solution and are either synthetic or mineral. Oil tends to operate
better than grease in higher-temperature applications because it
circulates more freely, resulting in the dissipation of heat. It
allows contaminants to be flushed or filtered from the bearing and
can allow the bearing to attain higher speeds. Oil levels also are
more easily controlled and easier to drain and refill, yet they
can be tricky to seal in some situations.
Conversely, grease?a precise combination of oil, thickeners and
additives?is more easily confined to the bearing. Grease acts like
a sponge to retain and release oil, but it also performs like a
seal against moisture, dirt, and other contaminants. With no oil
levels to maintain, it requires less frequent lubricating and its
thickness makes leakage less likely to occur.
Proper lubrication is an essential component of effective preventive
maintenance. Knowing how to properly deliver and apply the lubricant
is critical to the performance of that equipment.
Oil circulation systems assure a proper and constant supply of lubricant
to the bearings and are often used in the paper industry. These
systems are designed to pump paper machine oil from a central oil
reservoir to different parts of the machine and then return it to
the reservoir for cooling. Circulation systems offer the advantage
of removing heat from the bearing, as well as allowing any water
entering the system to be separated in the oil reservoir and be
periodically drained off. Filtration units built into the system
protect bearings from debris that can be detrimental to bearing
Grease also is a viable option for lubricating paper machine bearings.
The paper machine grease must offer long life in hotter temperatures
and possess excellent corrosion resistance and water washout properties,
especially in the wet end of the operation.
When delivering grease, manual delivery is a viable option, but
bearings can easily be over or underfilled. When applying the grease,
it should be forced between the balls or rollers until the available
space inside the bearing is filled completely. If a grease gun is
used, pressure must be regulated so as not to damage any seals or
other parts of the machinery.
Grease delivery generally follows the 1/3 rule. This means that
the bearing will expel or purge all grease in excess of about 1/3
of the volume available. Any excess grease should be wiped away.
The space on each side of the bearing in the housing should be no
more than half filled.
This is especially important for bearings with two shields or seals,
since excess grease cannot get out during operation. Bearings without
the shields or seals will expel any excess grease into the free
housing space outside of the bearing during operation, which is
why the housing space should never be filled completely.
Other delivery choices include single-point lubricators. Single-point
lubricators provide the option of using several different greases
simultaneously on a piece of machinery to compensate for different
lubricant requirements precisely where and when needed.