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Partnerships for Successful Enterprise Transformation of Forest Industry Companies Implementing the Forest Biorefinery
Pulp & Paper Canada, 2009-05, Vol.110 (5/6), p.19
Copyright Southam Business Communications, Inc. May/Jun 2009 ;ISSN: 0316-4004 ;EISSN: 1923-3515
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Title:
Partnerships for Successful Enterprise Transformation of Forest Industry Companies Implementing the Forest Biorefinery
Author:
Chambost, V
;
McNutt, J
;
Stuart, P R
Subjects:
Business models
;
Forest products industry
;
Partnerships
;
Revenue
Is Part Of:
Pulp & Paper Canada, 2009-05, Vol.110 (5/6), p.19
Description:
Increasingly, forest product companies are seeking to diversify their revenues, and improve their profitability via implementation of the forest biorefinery. This paper considers the overall approach that forestry companies might consider for the implementation of the forest biorefinery, the enterprise transformations implicated, and, most importantly, the partnerships that must be created in order to mitigate risk and enhance the potential for success of biorefinery implementation. Forestry companies that limit their consideration of the biorefinery as an investment in projects that yield interesting returns in the short term, such as pellet mills or biofuels, may or may not be successful at transforming the business models of their companies in the longer term. The recommended approach is to identify new added-value biorefinery products to be manufactured over the longer term, the new supply chain mechanisms needed for their efficient delivery, and importantly, the quality partners needed to be successful in this objective. Lowering mill operating costs by replacing fossil fuel use at the mill via the production of biofuels represents an interesting alternative to address in part the current economic stalemate situation of forestry companies. This first biorefinery product could be consumed by the mill itself to replace fossil fuels in the short term, or could entail the manufacture of biofuels for the market. It should be considered as a "building block" process for the production of added-value chemicals at a later point in the biorefinery development. The viability of these projects is based in the emergence of policy and regulations related to global warming, as well as the volatile and increasing price of petroleum. This preliminary phase of the biorefinery should also ensure a long-term viable price of a large volume of biomass for the forestry company core business at the same time. Alone, this biorefinery implementation phase will assist to lower costs, but does not result in company transformation nor render the forestry operations competitive for the longer term. Résumé: Les entreprises de produits forestières cherchent de plus en plus à diversifier leurs revenus et à améliorer leur rentabilité en implantant des activités de bioraffinage forestier. Ce papier considère les stratégies que ces entreprises pourraient adopter en matière de bioraffinage forestier, sur les transformations à apporter, et aussi sur les partenariats qui devraient être établis afin de réduire les risques et d'accroître le potentiel de réussite des bioraffineries. Les entreprises forestières qui considèrent le bioraffinage seulement comme un investissement classique dans des projets offrant des rendements intéressants à court terme, comme la fabrication de billes de bois (wood pellets) ou de biocombustibles, pourraient ne pas réussir à transformer leurs modèles d'entreprises à plus long terme. L'approche présentée souligne la nécessité de déterminer quels sont les nouveaux produits de bioraffinage à valeur ajoutée à fabriquer à plus long terme, les nouveaux mécanismes de la chaîne d'approvisionnement nécessaires afin de pouvoir les livrer plus efficacement, et plus important les partenaires stratégiques requis pour attiendre ces objectifs.
Publisher:
Westmount: Annex Publishing & Printing, Inc
Language:
English
Identifier:
ISSN: 0316-4004
EISSN: 1923-3515
Source:
ProQuest Central
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