Kai Korhonen at CPBIS/IPST Distinguished Lecture Series:

What Drives Consolidation in the Paper Industry?

ATLANTA, GEORGIA, November 22, 2002 --- Kai Korhonen was the third speaker in a Distinguished Lecture Series presented by the Center for Paper Business and Industry Studies (CPBIS), Institute of Paper Science and Technology (IPST), and Buckman Laboratories. The seminar was held on November 22, 2002 at 11:00 am in IPST's Kress Auditorium and broadcasted over the web.

This FREE recorded webcast is now available. Please click on: Webcast of Kai Korhonen Distinguished Lecture. Mr. Korhonen discussed the forces behind consolidation in the paper industry. The abstract of the lecture can be found by clicking here and the slides of the presentation by clicking on Slides (6.8 MBytes).

Jim McNutt, Executive Director of CPBIS said: "The greatest problem now facing the global and domestic consolidation moves by the paper industry is how to create and capture value. This can be done in a variety of ways, such as with more manufacturing efficiencies, economies of scale, more efficient supply chain management, closing of ineffective capacity, and seeking and securing broader organizational financial synergies.

Unfortunately to date, the paper industry has not demonstrated behaviors that have resulted in the real creation and capturing of value in these ways. What these newly emerging multi-nationals are also facing is a whole new and very complex array of supporting and conflicting issues of exchange rates, tariffs, local environmental regulations, nationalism, totally new and altered supply chains that cut across many countries borders, policies, governments, cultures, and social mores.

In effect, the paper industry is in the throes of a major global make over, and how well it will evolve down this path is yet to be understood or determined. For these reasons it was appropriate for Kai to come and speak to us on the threats and risks associated with consolidation and how the North American Paper Industry compares to the rest of the world."

Kai Korhonen is president of Stora-Enso North America, a position he has held since August 31, 2000, following the acquisition of Consolidated Papers, Inc. by Stora Enso Oyj. Korhonen has been employed by Stora Enso since 1977. He began his career as assistant superintendent of the TMP plant and moved to the paper mill in 1979. There he served as assistant superintendent, production superintendent, production manager, technical director and general manager until he advanced to vice president of the paper mill in 1987. Korhonen was named general manager of the Varkaus mills later that same year. He was promoted to senior vice president, corporate planning in 1991, vice president of marketing in 1996 and was president of the Newsprint Division beginning in January 1999, serving in that capacity until accepting his current position with Stora Enso North America.

Korhonen is a member of Stora Enso's Executive Management Group and has a degree in engineering from the Helsinki University of Technology. He also earned an executive MBA from the Helsinki School of Economics and Business Administration. He currently serves on the American Forest & Paper Association's (AF&PA) board of directors, and has served in various capacities of the Finnish Paper Engineer's Association.

Buckman Laboratories has sponsored the Distinguished Lecture Series -- the series is free to the public. The next lecture will be on January 24, 2003. Patrick Moore, Ph.D. a founding member of Greenpeace will discuss why he believes that trees are the answer to many questions about our future.

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About CPBIS: The Center for Paper Business and Industry Studies (CPBIS) is a globally recognized and industry-valued academic center, creating knowledge and tools that support paper industry decision-makers, and producing interdisciplinary graduates who contribute to the long-term success of the paper industry. The CPBIS is co-sponsored by the Alfred P. Sloan Foundation, the Institute of Paper Science and Technology (IPST), the Georgia Institute of Technology (Georgia Tech), and the Paper Industry.
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