Masaaki Kobayashi, president of Daishowa-Marubeni International Ltd.

To stay operational and profitable, forest product companies like Daishowa-Marubeni International Ltd. (DMI) have looked beyond conventional methods to innovate and diversify pulp operations, and find new markets.

‘‘Traditionally, our main market was Japan and Asia. But since recycled fiber makes up 65 percent of the Japanese market today, we’ve had to look to other markets for exports,’’ says DMI President Masaaki Kobayashi.

‘‘With the economic closures of many Canadian pulp mills, we’ve found new markets in the United States. Today, 27 percent of our products go there, more than double the export total of 2001, and we hope to expand this market share in the future,’’ he adds.

Addressing the concern of limited wood resources, the company has shifted from an on-site wood room chipping facility to using portable chippers, which has cut the number of multiple handling steps and increased fiber yields by 15 percent as it allows the entire tree, including branches and tops, to be processed.

The company is also diversifying its activities to meet rising energy costs head-on.

‘‘We’ve upgraded our electricity generating facility, which has increased our electricity surplus. As a result of this surplus of energy, and our ability to export it to the electrical grid, we’ve been able to turn a profit. Higher electricity costs have actually become a positive aspect of our operations,’’ he says.

Kobayashi sees a lot of potential in the Canadian pulp and paper industry, but emphasizes that while companies cannot rely solely on support from the federal or provincial governments for their survival, governments need to ensure regulatory policy decisions are supportive of industry needs.

‘‘With this in mind, we’ve learned to help ourselves,’’ says the head of DMI. ‘‘To stay competitive, we’ve learned to analyze the challenges, and meet them head-on.’’

www.dmi.ca