Monday, July 11, 2005

Pulp Mill Closes due to Cost Pressures

Wausau Paper in Brokaw, Wisconsin recently announced it will no longer manufacture pulp for internal consumption. Management sited raising costs AND introduction of additional low cost fiber producers in areas such as Latin American. FYI. Wausau Paper is already one on the largest single company purchasers of market pulp.
My prediction is this is the first of many announcements and that many smaller intergraded mills will be shuttering equipment and purchasing fiber on the open market.

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