Sateri (RGE Group) (now owning the Jiangsu Xiangsheng mill)

Sateri is officially incorporated as Pacific Viscose Limited part of the Royal Golden Eagle (RGE) Group (also owns the Jiangsu Xiangsheng mill)

Shanghai, China

16
2
KR
shim
Known risk confirmed in audit

1. Completion of CanopyStyle Third Party Verification Audits

1.1 Undertaking Annual Audits

1.2 Audits Public and Results Acted On

1.3 Audit Risk Results

n/a

2. Contribution to Conservation Legacies

2.1 International Targets

2.2 Public Collaborative Leadership

2.3 Influences Decision Makers

2.4 Legislated Protection

2.5 Extra Respon­sibilities

3. Innovation via New Alternative Fibers

3.1 Partnerships

3.2 R&D Investments

3.3 Scaling to Commercial Products

3.4 Targets & Timelines

3.5 Contributing to Collective Goal

n/a

3.6 Aggressively Increasing Commercial Scale

n/a

4. Adoption of Robust Forest Sourcing Policy

4.1 Policy Adoption

4.2 Policy Meets All CanopyStyle Criteria

5. Traceability, Transparency, and Sustainable Sourcing

5.1 Using the Dissolving Pulp Classification

5.2 Track & Trace System In-Place

5.3 Public Sharing of Supplier List

5.4 Proactive Sourcing Decisions

n/a

6. Leaders in Supply Chain Shifts

6.1 Proactive Sourcing Decisions

6.2 FSC Preference

n/a

6.3 Forest Mapper Support

n/a

7. Associated with High Risk of Sourcing from Ancient & Endangered Forests and other Controversial Sources

7.1 Risk Is Known and No Action Is Taken

7.2 Initial Action Taken to Address Risk

n/a

7.3 Sourcing Risk Has Been Resolved

Total:

Buttons 16

Chemical Management

The Producer Is Addressing the Pollution Originated by the Chemical Substances Used During the MMCF Production Process. It Has Joined a Credible Initiative That Advances Solutions on Chemical Management.

The producer is implementing, for all of its sites, pollution control technologies to limit their impact, developing an approach for the recovery of substances used or generated during the production of MMCF.

N/A

ZDHC Responsible Fibre Production Guidelines ZDHC Wastewater Guidelines (evaluated in 2020, worth 3 points) ZDHC Air Emissions Guidelines.

N/A

Total:

2 Points

Risk of sourcing from Ancient and Endangered Forests

As part of the Royal Golden Eagle Group (RGE), Sateri is a sister company with:

  • APRIL (Asia Pacific Resources International Ltd), the Indonesian pulp producer and plantation company;
  • Asia Pacific Rayon (APR), a MMCF producer; and
  • Bracell, a Brazil-based dissolving pulp supplier.

It is also associated with the Toba Pulp Lestari (TPL) mill in Indonesia, held by the same beneficial owners, the Tanoto family.

APRIL and TPL have a legacy of significant deforestation and conversion of natural forests and peatlands to monoculture plantations. APRIL continues to operate on carbon-rich, drained tropical peatlands, and there are ongoing reports of local conflict with both pulp mills, their operations, and their wood suppliers.

Sateri’s initial CanopyStyle Audit detailed and confirmed the presence of high-risk sources in their supply chain from Indonesia and Malaysia. Canopy subsequently clearly summarized the concerns that have led to a risk designation pairing them with proposed specific actions to mitigate or resolve issues. Throughout 2020 and the first half of 2021, Canopy engaged in dialogue with RGE and APRIL in an effort to foster the changes on the ground that would address these. Once actions have been taken to address these core risks, the company is eligible and may wish to undertake another audit to confirm this outcome.

Canopy recognizes some progress has been made in certain areas, and remains committed to constructive engagement and seeking opportunities where progress is possible. Brands should continue to liaise with Canopy to monitor the timely implementation of the much-needed key milestones by Sateri and its core suppliers.

Risk of sourcing from Ancient and Endangered Forests and controversial sources remains. Canopy recommends a considered approach by the marketplace at this stage.

Key Improvements Required

As part of the RGE family of companies, Sateri is uniquely positioned to advocate internally for substantive change in the practices of its primary suppliers to address identified risks, including encouraging APRIL to:

  • Prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks, with a corresponding tonne-for-tonne reduction in the sourcing of high-carbon peatland fibre and other controversial supply sources;
  • Implement concrete and effective measures to remediate or provide restitution for the company’s legacy of adverse social and environmental impacts, including resolving conflict with traditional and local communities;
  • Significantly reduce operations on high-carbon peatlands and increase the restoration and protection of peat ecosystems within the concession land base; and
  • Increase restoration commitments across its operational land base beyond the current 1:1 ratio, incorporating science-based targets more appropriate for tropical rainforest ecosystems.

Sateri can also:

  • Encourage transparency regarding APRIL’s planned production expansion, in particular open sharing of detailed information on projected fibre sourcing;
  • Ensure all suppliers and their supply partners are not associated with the conversion of natural forests to plantations;
  • Adopt a clear preference for FSC-certified fibre in its own corporate policy and make this available publicly;
  • Prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks for future expansion plans and new suppliers; and
  • Accelerate the use of Next Generation fibre solutions in order to meet or exceed the target of all production being 50% by 2030.

Areas where the company is showing leadership

  • The company is engaging its core supplier APRIL and parent company RGE to take concrete steps that advance conservation in critical landscapes in the endangered Leuser Ecosystem.
  • Sateri is investing in Next Generation fibre technology and trialing various fibre inputs. It is also a core investor in Finland’s Infinited Fibre Company.
  • With Sateri’s encouragement, RGE/APRIL committed to no sourcing from Intact Forest Landscapes.
  • Sateri has engaged in dialogue with Canopy and customer brands about reducing the risks currently associated with its sourcing, although its primary supplier and parent company has yet to implement necessary measures.

Number of viscose, lyocell and dissolving pulp mills + location and production volumes

Sateri produces Finex at small volumes of approximately 150-200 tonnes per month for Chinese markets. The product is 20% recycled fibre (sourced from the hospitality sector) mixed with 80% FSC-certified tree fibre.

In 2015, Sateri Holdings Ltd separated into two distinct corporate entities, “Bracell Ltd” and “Pacific Viscose Ltd.” Bracell operates both plantations in Brazil and the Bahia Speciality Cellulose dissolving pulp mill.

Sateri currently owns five viscose mills and one lyocell facility in China.

  • Sateri (Jiangxi) Chemical Fibre Co. Ltd. in China. Production capacity 230 000 tonnes of VSF.
  • Sateri (Fujian) Fibre Co. Ltd. VSF production facility. Capacity 300 000 tonnes per annum.
  • Sateri (Jiujiang) Fibre Co. Ltd. Production capacity 335 000 tonnes per annum.
  • Sateri (Jiangsu) Fibre Co. Ltd. Production capacity 300 000 tonnes per annum.
  • Sateri (China) Fibre Co. Ltd. Production capacity 250 000 tonnes per annum.
  • Sateri Lyocell Production Line (Rizhao, Shandong Province). Production capacity 20 000 tonnes of lyocell per annum.

Annual production capacity is approximately 1.4 million tonnes of viscose staple fibre (VSF) and 20 000 tonnes of lyocell.

Sateri plans to increase lyocell fibre production in China to 500 000 tons by 2025.

Sateri’s acquisition of Aoyang Technology is undergoing regulatory review.