Browsing by Author "Lindberg, Henrik"

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Evaluation of location-based capital cost adjustment factors in the pulp and paper industry
(2023-03-21) Lindberg, Henrik
Kemian tekniikan korkeakoulu | Master's thesis
Given the increased global competition and declining margins in several product categories in the pulp and paper industry, it is important for companies to understand the factors affecting total investments costs. To accurately evaluate investment alternatives, investment cost estimates should incorporate the effects of location at the pre-feasibility level. In this study, present methods to determine location cost factors were examined and their applicability for estimating investment costs in the pulp and paper industry were indicatively assessed. This assessment was conducted through an extensive literature review and through interviews with cost estimation experts in the field. Additional interviews were conducted with three companies representing different stakeholders in investment projects within the pulp and paper industry to determine further cost elements resulting in cost escalation associated with the chosen project location. It was found that generally, themes related to project labor costs were the main source of escalated costs reported by the interviewed parties. Estimating the cost of local labor and evaluating the availability of labor were the main sources of contention. Since the 21st century, there has been an increasing number of reported statistics tracking both country and industry-specific cost developments. Many of the recently available indexes were indicatively argued to be better suited for establishing relative price levels between countries. More appropriate inflationary cost indexes to observe cost developments in the major cost elements of pulp and paper investment projects were identified. Methods to incorporate previously unquantified location cost factors in the investment cost model at AFRY Management Consulting were presented. Tracking the level of foreign direct investment inflow in smaller economies was argued to function as an indicative indicator for labor shortages in pulp and paper projects. A collection of general recommendations to ensure validity and accuracy of pre-feasibility level location cost adjustment factors within the investment cost estimation model used at AFRY Management Consulting Oy were presented.
Modularity in Paper Machine Manufacturing
(2020-09-01) Lindberg, Henrik
Kemiantekniikan korkeakoulu | Bachelor's thesis