The merchanting group issued the statement after receiving the results of the independent audit into APP and Sinar Mas Groups (SMG) forestry and papermaking operations.

The audit was carried out by AMEC Simons Forest Industry Consulting, and followed Friends of the Earths (FoE) 68pp Paper Tiger, Hidden Dragons report into APPs forestry methods last year (PrintWeek, 6 July 2001).

Shortly after the report was issued last year, both Robert Horne and Howard Smith Paper ceased trading with APP. Howard Smith Paper said it had seen the audit but its position remained unchanged. We will not be trading with APP, it said.

Robert Horne Group marketing director Bob Latham said: We have seen great strides by APP over the last six months, and we welcome their commitment to the independent audit.

Friends of the Earth forest campaigner Ed Matthew said: We welcome Robert Hornes statement, and our critique into the report recognised that APP is making strides into acting more sustainably.

Latham added: The audit identified the main requirements for a sustainable development plan that meets the needs of both the environment and social needs of indigenous people.

Story by Andy Scott