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Demand is picking up
The customers are more active than just a few moths ago, and we at Jujo hope that this means an end to the recession or crisis or whatever it is called now. The markets were quiet in the first part of the year and we had to take some downtime in the spring, something which is not good for any business but which has to be done in hard times. Some of our customers have felt the recession quite strongly, especially in the POS sector but it is a mixed picture and not all sectors have suffered as much from a drop in volume.
The order books have become bigger since the summer, and the sales in quarter four have been about normal for a speciality producer like Jujo. We are used to operate at around 90% of practical max at all times, and with a large product range we are serving a relatively wide range of customers. Another feature is our global presence which enables us to be a solution provider for businesses in Australia just as well as for converters in Finland and any destination in between.
Raw material values on the way up and dollar on the way down
The pulp producers have had one of history's strongest price increase periods this autumn, and there is no letting up to be seen as this is written, late December. Pulp pricing is a relatively uncomplicated affair, linked as it is to supply and demand with an element of stocks at harbours that is relatively well known. Freight costs have started to rise as well, and no doubt most other commodities that we buy will start to follow suit. We expect our business case to demand that we take action and start increasing prices soon in the first quarter, most certainly in the POS grades where the pressure is felt today.
New products and increased efficiency is always to be seen in the new year
The quest for durability, quality of VIP, and all this at a better price than yesterday, continues to be the daily work at the mill, and we have made some significant progress in most areas this year. We continue to seek operational excellence, and our vision of being the customer’s first choice is a moving target, closer each year. However, there are always things to do, do in a better way than before. We are in the business of 'Digital Data Documented Daily', and we have every reason to believe that the market has reverted to the long term growth of 10% per year, and on that positive note we wish all our customers a Merry Holiday Season and a better 2010 than 2009 was!
Peter Hutton
President & CEO
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