Paper Week 2005

Each year the chief Executive Officers of all the major Pulp and paper Industry from around the world meet. This year’s meeting will be held in New York City at The Waldrof-Astoria. The American Forest and Paper Association (AF&PA) host this.
It will be April 10-13, 2005.

Report on paper in 2004

Forecasts indicate continued increase in cost for raw components such as fiber, energy, freight, and chemicals. Accordingly, purchasers are budgeting for increased paper prices.
Mill management forecast operating rates to sustain at 92% (roughly, the same as 2004).
Additional consolidation, mergers, and equipment curtailment will be the norm.
Highlights include-
-Operating rate best in 10 years because of hundreds of machine shut downs.
-USA exports should improve with strong dollar
-Pulp prices will continue to increase
-Uncoated Freesheet (offset, copier paper) will grow at a decreasing rate
-More electronic communication
-Negative customer reaction to increased paper prices – substitute sub straights will be used
-Most mill capital expenses will be allocated to projects for environmental and energy efficiencies.
-Mill capital budgets at historical low
-Little money spent on capacity nor process improvement
-Purchasing paper online will increase

Paper.com has YOUR paper

Many consumers are now turning to the internet to purchase their paper. The traditional merchant or stationery store certainly still accesses, but web based purchasing is growing in demand. Many are pleased with the wide assortment of paper grades the site has and boost of competitive pricing. Paper.com now markets more paper on line than any other site. The cost of freight continues to be expensive, but unfortunately, paper is dense and just plain costs a lot to ship.

New Websites: Weyerhaeuser's Lynx Opaque and Cougar Opaque

Pardon the pun, but there is a 'mew' site on two grades of Weyerhaueser paper: Cougar Opaque, Weyerhaeuser’s premium opaque printing paper, and Lynx Opaque, a #1 opaque. Follow this link to read a review at PaperSpecs.com or visit the Weyerhaeuser micro sites directly at www.lynxopaque.com and www.cougaropaque.com.

Paper Industry Reports Strong Fourth Quarter 2004

A survey of 20 public U.S. forest product companies by Pulp & Paper Week indicated that the sector has had a strong fourth quarter and that, for the whole of 2004, the group has had the best financial performance in four years. Over the past decade, the industry has consolidated, capacity has been shuttered and many non-core assets have been shed. Performance over the past year suggests that the industry might finally be improving.

North American Paper Shipments rise

North American printing and writing paper shipments rose 6.9% from a year ago. Many large paper producers are reviewing another increase in paper prices.

USA very big on Recycling

Americans are recycling paper at an all-time high, recapturing 300 pounds per person each year. That's about half the paper produced in the United States. America is the best nation when it comes to recycling paper per person.

Paper Producers Consolidate

Mohawk / International Paper
Mohawk Paper Mill announced it will purchase the Fine Papers Unit from International Paper. The Fine Papers’ Business includes the writing, text and covers paper and artist products segments. Sites include the Hamilton, Ohio paper mill, the Saybrook, Ohio converting facility, and the Westfield, Mass mill as well as Artist Products converting operation. The brands include Strathmore®, Brite Hue®, Via®, and Beckett® brands.

The Fine Papers business produces approximately 65,000 tons per year. This will effectively double Mohawk’s capacity.

SPIN-OFF GOES PUBLIC
Neenah Paper Inc., manufacturer of CLASSIC and ENVIRONMENT papers, recently completed a tax-free spin-off from Kimberly-Clark and began trading on a stand-alone basis on December 1, 2004.

The new public company includes Neenah Paper, a premium Writing, Text and Cover business; Technical Paper, a producer of durable, saturated and coated base papers and a Canadian pulp business.

SPECIALTY COATEDS ARE ACQUIRED
CTI Paper USA proudly announced the acquisition of the Currency and Jazz grade lines and trademarks from Appleton, which will take place on January 1, 2005.

Currency and Jazz are strong, well-established coated colored Text and Cover brand names, popular in the graphics markets for decades. "We will improve the brands through aesthetic redesign in the coming months, ensuring Currency and Jazz grow their strong position in the
specialty coated papers category," said Brian J. Cowie, C.E.O. of CTI.

Fraser Papers to Sell Park Falls Mill to SMART Papers
Fraser Papers Inc. announced it has signed an asset purchase agreement with SMART Papers LLC to acquire pulp and papermaking operations in Park Falls, Wisconsin. The purchase agreement includes a 470,000 square foot converting, distribution and customer service facility in West Chicago, Ill. Fraser papers will receive a passive minority interest in the parent of SMART Papers as part of the transaction, which is subject to customary closing conditions. The deal is expected to close in approximately 60 days.

MeadWestvaco Sells Paper Unit
Paper and packaging maker MeadWestvaco Corp. has agreed to sell its paper business and associated assets for $2.3 billion to reduce its debt and focus on growing in global packaging markets, the company said on Tuesday.

It said the deal to sell its paper unit to a new company controlled by Cerberus Capital Management LP,

Domtar Reduces a Canadian Asset
Domtar announced it will curtail a specialty paper machine in its Cornwall, ON facility. The company recited the weak Canadian dollar as the reason for the shut down. The machine will cease production in March.