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Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide

November 2019

Participating as industry experts in pulp and paper financing and M & A deals around the world  for nearly three decades, we continue to see the same mistakes made over and over.  This newsletter is designed to help you avoid costly mistakes we have seen others make.  We will be giving you one or two points each month to help improve your performance.
 
Country Risks reach the United States

By Jim Thompson
 
Working in the investment side of the industry, we are familiar with Project Risks (markets, raw materials, assets) and, where necessary, Country Risks (government stability, infrastructure, foreign exchange).  In first world countries, we seldom give Country Risks much thought.

However, in recent times, events in California seem to be changing this standard.  With rolling blackouts, curtailed natural gas distribution and general lack of access due to forest fires, it seems as though California is out of control.  Hence, Country Risks will now have to be considered in industrial projects there.

Not that long ago, regulatory issues in California seemed to be the stumbling block when I talked to investors about that state.  Adding these new uncertainties nearly takes California out of consideration for projects.  

If California is interested in industrial growth, they need to rapidly demonstrate they have these new risks under control and a long term plan to permanently mitigate them. 

Have a comment?  Email me at jim.thompson@ipulpmedia.com

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If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com. We are here to help.

 

Sincerely,

 


Jim Thompson, CEO
Talo Analytic International, Inc.

 

 

 
JRT Banker's Engineer