Proprietor of Canada’s largest pulp and paper firm to take over controversial Asian conglomerate

After denying connections for years, the proprietor of Canada’s largest pulp and paper firm is about to take over a controversial Indochinese forestry conglomerate presently owned by his father.

In line with a discover submitted to the European Fee’s Directorate Basic for Competitors on Nov. 15, Jackson Wijaya, the proprietor of Canada’s Paper Excellence Group (just lately rebranded as Domtar), is about to accumulate direct management over Asia Pulp & Paper, or APP. The forestry big APP is presently owned by Jackson Wijaya’s father, Indonesian-Singaporean businessman Teguh Ganda Wijaya (also called Oei Tjie Goan), and says on its web site that it exports its merchandise to 6 continents.

Each corporations have repeatedly denied any operational hyperlinks to 1 one other for years, whilst Paper Excellence’s possession construction got here below authorities scrutiny in Canada final 12 months. The Canadian parliament launched a probe in April 2023, following the ICIJ-led Deforestation Inc. investigation, which revealed ties between the 2 corporations.

The Indonesia-headquartered APP is without doubt one of the world’s largest pulp and paper producers, and has lengthy been tormented by accusations of environmental destruction, deforestation and human rights abuses. The corporate was stripped of its Forest Stewardship Council sustainability certification in 2007, the identical 12 months Paper Excellence started working its first pulp mill in Canada.

A Paper Excellence spokesperson advised Canadian media shops that the most recent improvement is a part of “regular course succession planning” by the senior Wijaya. However the information of the takeover has drawn considerations from some Canadian lawmakers.

“We obtained fully performed for suckers by a really doubtful firm,” parliamentarian Charlie Angus advised ICIJ’s accomplice CBC/Radio Canada.

“I don’t assume the Canadian authorities would have ever allowed Asia Pulp & Paper [to buy Domtar and Resolute, two forestry companies acquired by Paper Excellence] due to its doubtful document. So the household units up one other firm. The household says, ‘Oh, we’re not related in any method.’ Regardless of the plain connections, they get.… to purchase Canadian assets. So we’re ready that was fully predictable,” Angus mentioned.

The announcement comes lower than per week after Canada and Indonesia signed a free commerce pact, ICIJ accomplice Glacier Media reported.

A spokesperson for Domtar (the brand new identify of Paper Excellence since final month) advised Glacier Media that Jackson Wijaya’s appointment was just lately made and that “Jackson couldn’t have foreseen the timing since that is the want and determination of his father.”

“Importantly, Mr. Wijaya won’t maintain any management place inside APP, and APP and Domtar will proceed to function as they at all times have — as distinct entities, every with its personal administration groups and governance constructions,”  mentioned Jennifer Johnson, Domtar’s vice-president of world communications.

Paper Excellence reportedly controls hundreds of thousands of acres of Canadian forest. Final 12 months, Deforestation Inc. reporters in Canada and France discovered proof suggesting Paper Excellence and APP share a deeper relationship than was beforehand reported.

ICIJ companions interviewed former staff and analyzed delivery and court docket data and company paperwork spanning 15 years. Additionally they reviewed leaked emails that confirmed workers labored freely between the 2 corporations.

In June 2023, Canadian lawmakers requested Jackson Wijaya to attend a gathering of the Committee on Pure Assets. Wijaya didn’t present up, sending 4 firm executives in his place and a letter.