Abstract
The capital requirement in Pulp and Paper Industry projects is enormous, a new pulp mill will cost about $1 Billion Dollars. The international competition is getting stronger as countries like Indonesia, Brazil, etc., build their own industry. In addition to being highly competitive from any cost point of view, the companies in these countries are considering to separate their power islands to third party owned independent utilities to save capital for important process investments. The new utilities will naturally have access to the lowest cost of international financing. However, there can be a small penalty in power price depending on the case. The strongest companies can choose their actions but others should seriously consider catching up with this trend to survive as independents. This presentation identifies the key issues during such decisions.
Kangas, M. Y. O. (1997). Road Map to Capitalization of Power Generating Facilities. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from
https : / /hdl .handle .net /1969 .1 /91259.