Key Improvements Required
- The priority is for Sateri to implement the proposed initial action plan, and to address the prioritized gaps in order to achieve the following outcomes:
- Support from RGE and its’ affiliates for the conversion of concession licenses within the Leuser Ecosystem into conservation or Ecosystem Restoration Concessions;
- The protection of any/all remaining intact peatlands throughout APRIL and any supplier concessions, no net loss of peat, restoration of priority peat landscapes, suspension of the drainage of peatlands identified by best available science as priorities in need of conservation and/or restoration, and sharing reports of large-scale trials of different peatland restoration options;
- A public commitment by RGE that no sourcing of fibre (from supply partners or open market suppliers) and no new development will be undertaken by RGE or any of its’ associated companies in the forests of Papua, West Papua and the Leuser Ecosystem as well as any new or additional development in intact or marginally fragmented forests in West Kalimantan or Kalimantan;
- A commitment that APRIL will ultimately increase its restoration commitments to more fully reflect both the current and historical impact of its operations;
- The development of fibres with 100% of innovative fibre sources, such as post-consumer recycled fabric sources and agricultural residues.
Sateri is one of the founding members of Collaboration for Sustainable Viscose in China. Sateri is encouraged to use its leadership position within that group to ensure that the CV roadmap aligns its raw material sourcing criteria to avoid sourcing from Ancient and Endangered Forests.
Given growth projections, Sateri should use tools such as ForestMapper to ensure future expansion plans and ventures are not located in, and not sourcing from, Ancient and Endangered Forests including areas of High Conservation Value or High Carbon Stock. We recommend that the company move quickly to have 100% of new production capacity originate from Next Generation Solution feedstock.
Areas where the company is showing leadership
Sateri is actively engaged in dialogue with Canopy and customer brands about reducing the risk currently associated with its production. While it has taken some first steps to respond to an initial action plan, the company has yet to embark on ambitious, transformational action or the implementation of significant change.
The company was one of the first global viscose fiber producers to complete and release publicly the CanopyStyle Audit and is interested in being audited regularly. Canopy, however, is recommending the second audit proceeds upon progress made via implementation of the agreed action plan addressing risk identified in its previous Audit.
Sateri’s parent company, RGE, has also recently announced a $200 million investment over ten years to support solutions in closed-loop manufacturing, with ~$70 million going to alternative cellulose or plant-based feedstock.
Sateri has formalized a collaboration with re:newcell, some R&D projects in Indonesia and China, and a collaboration with Infinited Fibre Company (IFC), a next generation solution provider which is using textile waste to produce new fibres.
Canopy and APRIL are exploring the potential of a dialogue aimed at finding common ground in addressing the sourcing of fibre for viscose in support of the overarching goals in Canopy’s framework approach. Any developments of note will be communicated by both parties if and when they emerge.
Number of viscose, lyocell and dissolving pulp mills + location and production volumes
Sateri owns four viscose mills in China, for an annual production capacity of 1 070 000 tonnes of viscose staple fibre.
- Sateri Jiangxi mill in China has a production capacity of 225 000 tonnes of viscose staple fibre.
- Sateri Fujian viscose staple fibre production facility has a production capacity of 290 000 tonnes.
- Sateri Jiujiang fibre mill has a production capacity of 285 000 tonnes.
- Sateri’s acquired in 2019 the Jiangsu Xiangsheng Viscose Fiber Co. and intended to increase production capacity from 220,000 to 300,000 tons.
In January, 2015 Sateri Holdings Limited separated into two distinct corporate entities, “Bracell Limited” and “Pacific Viscose Limited”. Bracell Limited owns and operates timberland in Brazil and the Bahia Specialty Cellulose dissolving pulp mill in Bahia, Brazil. It is one of the largest manufacturers supplying more than 10% of the world’s dissolving pulp.
Sateri produces man-made cellulosic fiber (MMCF) and nonwovens, mainly standard viscose fibres and rayon.
Sateri uses a diversity of tree species such as eucalyptus, aspen, maples, jack pine, fir, Hemlock, spruce, pine, birch and others.