L P U   -   P A P E R   S T O N E

Marketing analysis

SWOT analysis

Strengths

  • The patented "ecological" technology of paper production from limestone, the formulation of which has no analogs in the world.
  • Successfully chosen location - developed transport and engineering infrastructure of the site.
  • Availability of own extraction of the main raw material - limestone (license for 25 years, deposit debit of 1.603 million tons).
  • Stable growth of the industry and the potential capacity of both the local and export markets.
  • Global trends in developing green production technologies and the growing demand for "carbon-free" products.
  • Global reduction in deforestation and pulp production (including legal restrictions).
  • High profitability of the Project.
Weaknesses

  • The issue of obtaining permit documentation for limestone mining and other types of permit documentation still needs to be fully resolved.
  • The country's challenging economic and political situation caused by the Russian Federation's aggression against Ukraine.
  • Weak protection of foreign investments.
  • The presence of technological risks associated with the use of innovative technology.
Opportunities

  • Product range expansion to include more profitable finished products (paper bags, tableware, containers).
  • Subventions from the Ukrainian state for developing industrial parks as per already adopted laws.
  • Product sales in international markets.
  • Expansion of the company by building the new factories in European countries.
  • The possibility of technology transfer and product development through franchising.
  • The opportunity to become one of the first manufacturers in the EU's stone paper market and other world markets.
Threats

  • Reduction of the cost of paper in the domestic and world markets.
  • An increase in the cost of production due to the rise in taxes and other deductions.
  • Failure to receive state subsidies related to the industrial park.
  • Currency risks: due to significant fluctuations in the exchange rate, the cost of the leading production equipment may increase.
  • Logistics challenges: blocking of Ukrainian ports creates risks associated with complex logistics routs, both for equipment and products.