News fromInternational Paper (IP) regarding their brightness change. Some of the highlights:
All uncoated ( 4,000,000 tons ) will be moving up in brightness
There will no longer be any 84 bright products available from IP
Tidal - 84 bright to 92
Fore - 88 bright to 96
Williamsburg - 84 to 92
Accent - 92 to 96
Converting grades such as envelopes - 84 to 92
Carolina, Colors, and Uncoated Bristol's will not change
The mill has apparently developed a new technology that enables them to reach a higher brightness at no increased cost, and have stated that they will be competitive with the existing 84 bright market. IP feels that with this change, their competition will do either one of the following:
Increase to 92 bright to avoid losing market share ( not good for most mills as they will significantly increase their cost )
Stay at the 84 bright level and fight it out on price ( not good for most mills as this further affects their profitability, or lack of )
We should begin to see this new product sometime in September. At this point, the mill has decided to stick with the same sku's. It's a good time to begin looking at your inventory levels of Williamsburg and Accent as in two months, these old shade products will be discontinued.
This is a significant move by IP, that will change the landscape of uncoated paper in North America.
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