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Europe's major paper-producing companies have decided to group together to create a common IT standard for electronic transactions between customers and suppliers - to which the whole European paper industry will be invited to join. The companies involved felt it was important to agree on a common standard for trading which will enable efficient transactions between customers and suppliers and thereby avoid the risk of a fragmented and thus costly e-commerce infrastructure within the paper industry. This is seen as an important means to accelerate the uptake of Internet-based e-commerce applications within the paper industry.

The standard will build on the existing PAPINET project, launched nine months ago, which aimed to set a standard for e-commerce transactions. This initial project received support from the European paper industry and some of Europe's biggest publishers and printers. Due to be launched in August 2000, it will provide for the exchange of business information between paper suppliers and their customers by providing better service and authenticated communication between partners.

The new initiative will build on and expand the scope of the original PAPINET project beyond publishing and printing into all product areas. The companies supporting the initiative so far (see overleaf) believe that this could become a global standard for the paper industry. Coordination will be handled by the Confederation of European Paper Industries (CEPI) which also coordinates the successful EDIPAP (Electronic Data Interchange) standard which has been in use for almost a decade. The aim is to have the new initiative completed within the shortest possible time-frame. Discussions with paper companies outside Europe to promote the standard will start immediately.

Marie S Arwidson, Director General of CEPI stated: "The development of such a standard is a powerful initiative. We can exploit our expertise in standardisation, identify best practices and supply the infrastructure for stimulating rapid e-commerce adaptation and diffusion in the whole industry".

Mr Juha Niemelä, Chairman of CEPI and President and CEO of UPM-Kymmene Corporation, commented: "The paper industry recognises the enormous potential that making use of e-commerce tools can bring in lowering transactional and other costs. We are confident that the best way to ensure efficient utilisation of the possibilities, is that the industry itself is active and creates a standard for this purpose."

The companies overleaf have so far supported the new initiative. Some major publishers and printers are already involved in the PAPINET project work. Other customer groups (e.g. packaging and tissue) will be invited to join the new initiative.