Day 058 - 30 Nov 94 - Page 09

     
     1        final conversion of the paperboard that the Iggesund Mill
     2        produces, because there is another conversion process and
     3        that is to make the carton or whatever final product may be
     4        required by the final customer.
     5
     6   MR. JUSTICE BELL:  The wastage, such as it is, in converting the
     7        pulpwood into usable pulp is taken into account in the
     8        calculation of what is actually required for the 1,000
     9        tonnes of carton board?
    10        A.  Yes.
    11
    12   MR. MORRIS:  Do you know that for a fact?
    13        A.  Mr. Morris, I would have to say that it is a question
    14        you perhaps ought to address to Mr. Bateman because he is a
    15        paper maker and I am not a paper maker.
    16
    17   Q.   Do you know that is the calculation that was made?  Do you
    18        see what I am saying?  Is that what you are reading into
    19        that calculation, or is that something you know for a fact
    20        because you talked to Mr. Thompson about it or Iggesund
         Paperboard about it?
    22        A.  I talked to Mr. Thompson about it and he is confident
    23        that the volumes that we were talking about in the total
    24        requirement for paper of a packaging quality for
    25        McDonald's, these two are relevant figures.
    26
    27   Q.   But relevant is not necessarily the same as identifying
    28        exactly what has happened in the process, and whether the
    29        material that is lost in the process has been included or
    30        deducted in that figure.  Are you sure that the 1,000
    31        tonnes of carton board when it requires 1590 tonnes of
    32        pulpwood that has included the waste or has that been
    33        deducted or do you know?
    34        A.  We have an input of pulpwood of the 156 tonnes of
    35        pulpwood and that, as you have seen, we had to multiply out
    36        to be able to produce the 1,000 tonnes.  So we have got
    37        1,590 pulpwood from British forests and 180 tonnes of
    38        sawmill chips which is the necessary input figure into the
    39        mill to produce the 1,000 tonnes of the pulpwood which is
    40        the requirement, a proportion of the requirement, for
         packaging for McDonald's.
    42
    43   MR. JUSTICE BELL:  The word "pulpwood" after "1590 tonnes" means
    44        the same as the word "pulpwood" after "156 tonnes"?
    45        A.  Correct.
    46
    47   Q.   You have had to rely on Mr. Thompson for these figures?
    48        A.  Absolutely, my Lord.
    49
    50   Q.   You are assuming that if he says 1590 tonnes of pulpwood 
    51        from British forests and 180 of sawmill chips are required 
    52        to produce 1,000 tonnes of carton board, that that includes 
    53        any allowance for wastage during the conversion process?
    54        A.  Yes, my Lord.
    55
    56   Q.   But you are reliant on Mr. Thompson for that?
    57        A.  Yes, on the basis that he is in direct in contact with
    58        the Iggesund Mill and he is taking his calculations from
    59        the joint knowledge of their business together.
    60