2004 Paper Capacity Information

The American Forest and Paper Association is beginning to release data for 2004
-Total US Paper and Paperboard capacity was 100million tons
-Forecast over next 3 years (2005-07) is for slight increase
-0.3% per year
-Compare to 2.2% / year during the 1990's
-Number of permanent mill shut downs
-Fell to 13 in 2002
-12 in 2003
-7 in 2004
-Machine closures
-40 in 2002
-39 in 2003
-21 in 2004
Concerns continue to be
-Competition from China and Europe
-Plastics
-Inefficient equipment - limited CAPEX
-Higher raw material costs - fiber, energy, freight