Stora Enso planting forest in China
Concerns raised about impact of eucalyptus plantation on local residents and environment
Thousands of eucalyptus seedlings are being planted on barren hills in China's Guangxi Province by local employees of the paper manufacturer Stora Enso. The Finnish and Swedish-owned company has acquired large areas in the southern province to serve as local raw material to satisfy China's growing need for paper.
Paper manufacturers are are tapping into the massive Chinese market, where demand for paper is growing faster than anywhere in the world. While paper itself was a Chinese invention, China is now having problems in its production. There is not enough pulp or fibre, which means that paper manufacturers either have to import their raw material from other countries, or produce it themselves.
Stora Enso set up a plantation for fast-growing eucalyptus in Guangxi in 2002. Now it has a long lease on an area of 90,000 hectares, half of which already has trees on it. The company hopes to get control of 160,000 hectares.
Plans are to eventually build pulp, paper, and cardboard factories near the plantations.
No decisions have been made yet on building a factory, but if Stora Enso's project expands into production, it will have great economic implications for the whole of Guangxi, which is one of China's poorest provinces. The average annual income of rural residents in the area is about EUR 340 a year.
Guangxi would like to develop into a new centre for the forest industry in China. "Cooperation with Stora Enso could speed up the development of the forest sector and attract other companies here", says Mo Hua, Deputy Mayor of the city of Beihai.
Mo says that Stora Enso's project could bring revenue of up to EUR 20 billion yuan (nearly EUR 2 billion), as well as between 30,000 and 40,000 jobs.
However, the implications of the massive project are not exclusively positive, and Stora Enso admits as much. The company says that it wants to operate in a sustainable manner, benefitting the local people as well. To this end, it commissioned a report from the United Nations Development Programme (UNDP) on the environmental and social impact of the forest project.
In its report last year, the UNDP did not notice any major problems that would require the suspension of the Stora Enso project. However, many smaller problems were found.
Natural diversity is put at risk when the area is filled with imported eucalyptus trees planted in straight rows. The tree plantations can also suck up water that would be needed by local agriculture. Fertiliser could also be left in the soil.
The UNDP says that the environmental concerns can be solved with the right kind of action. According to the report, greater problems face Stora Enso in its relations with the local population.
The rapid expansion of a foreign company has raised uncertainty among the people in the area, where the average educational level is fairly low; rumours abound.
"Eucalyptus smells strange. Some say that it is dangerous to people's health, but I don't know", says a local worker as he eats his lunch at the Stora Enso seedling farm.
A woman says that the rumour has made her stop gathering scrap wood in the cultivated forest, even though that was a significant source of income for her family. She does not feel that Stora Enso is a better employer than the Chinese forest company that used to be there. Wages are EUR 1.7 a day, which is just over the minimum wage in the area - EUR 35 a month.
Stora Enso is trying to improve its standing among the local people by financing village schools and health clinics. Information is being disseminated through new telecommunications centres.
In some situations, somewhat unusual means have been resorted to in dealing with the issues.
Mounds rising up in the middle of one plantation north of Beihai draw the observer's attention.
"They are graves", says Mikko Välimaa, head of corporate responsibility. "The local people accepted having them in the middle of the plantation. It was something of a challenge during Grave Sweeping Day, when there were large numbers of people, and fireworks were let off. There was a danger of a forest fire".
Stora Enso's project is bringing employment to more than 1,000 people, mainly in planting trees and maintaining the plantations. The work has been outsourced to subcontractors.
The expression "subcontractor" is perhaps somewhat overstated. In practice, the subcontractors comprise groups of men who have come to work from the same village carrying mattocks or spades. They will sometimes travel hundreds of kilometres.
Välimaa says that the improvement of the working conditions and terms of employment of these groups of workers poses the greatest difficulties for Stora Enso.
The forest plantations owned by Stora Enso are located in an area stretchinging over more than 200 kilometres - often accessible only via poor forest roads.
The workers live on the spot in rudimentary camps and work for long periods on end without taking any days off.
"There are suspicions that not everything is as it should be with the subcontractors. For instance, I cannot say with 100 per cent certainty that the insurance has been paid for all of the workers", Välimaa admits.
Stora Enso has about 40 subcontracted teams of workers, and the number is expected to grow in the future. The company would like partners with more professional skill, and a commitment to stay at work longer.
On top of one hill, the leader of one group, Pei Lianfeng, says that the contract that she signed with Stora Enso guarantees work for the group for a full year. The company pays to make sure that the workers get one day off a week.
The workers in the experimental project are also given suitable clothing and special shoes. The camp remains primitive, but Pei says that things are better now than before.
Now the men sleep in proper tents, and not under plastic sheets, as they did before. There is a cook in the camp, who prepares meals comprising more than just rice.
In this pilot programme, wages are higher than the normal level for the area. The men on the slopes earn EUR 4 for an eight-hour working day, which is twice the minimum wage in the area.
When the seedlings on the hills are growing, Pei's group will move to another area cultivated by Stora Enso. The camp life continues for months.
"The workers go home about twice a year", Pei says.
Helsingin Sanomat
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| 30.4.2007 - TODAY |
 Stora Enso planting forest in China |
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