Another Paper Mill goes to Auction

The assets of the bankrupt Durango Georgia Paper Company (former Gilman Paper) in St Marys, GA will go to auction on December 6. This mill produced converting kraft and speciality packaging grades.

Super Calendar Paper Enjoys Good Demand

One of the most outstanding segments of the paper industry is the Super Calendar market. This grade is used for Publications, Free Standing Insert for advertisers, Sunday Magazines, Retail Fliers, Manuals, and now, Catalogues and Magazines. This grade fits somewhere in between an uncoated newsprint (used for newspapers) and a Groundwood containing coated sheet (used for weekly magazines and catalogues). The quality of the Super Calendar (referred to as S/C) has vastly improved and the price has remained a value alternative. There are now 33 mills (up from 4) that produce this grade; 16 in North America and 17 in Europe. Five new paper machines that will produce S/C have been announced. This is an 800,000 ton

PCG Capital Partners confirms investment in Lincoln Mill

PCG Capital Partners has confirmed a $35million investment in the Lincoln Pulp and Paper Mill in Maine. Management will also invest $1million. The money will be used to expand the tissue capacity, and refinance existing liabilities. The Lincoln mill produces specialty tissue, napkins, and high bulk reply card.

No Paperless Office ... yet

The paperless office is a myth. The fact remains that documents, forms, email, and memos move from paper to digital AND BACK TO PAPER AGAIN!. I would argue, that the world is now consuming more paper in the office environment, It has become extremely important to integrate paper into digital workflows in order to centralize record keeping, archive, and distribute for wide spread readership and presentation.
Paper.com has every paper, every color, every style for the office environment.

Wausau Paper Reports a Loss for Third Quarter

Wausau reported a net loss this past quarter of $9million compare to earning $8.1million for the third quarter 2004. Although the Tissue and Towel unit as well as the Specialty Division yielded positive sales, the printing and writing sector remained weak and the mill could not raise prices to cover increases in energy, chemicals, and transportation. Management sited success with its new grade introductions of OptiServ, Exact Ice, and Exact Digital.
Wausau reduced printing and writing capacity in Brianerd by 5000 tons and over 50,000 tons in Brokaw (Brokaw continues to take down time).
Paper.com has Wausau available, in stock, and ready for immediate shipment.

Southworth announces new Line

Southworth, a producer of cotton-fiber writing papers, has expanded its line to include use for making customized awards and certificates. The new portfolio of 25 grades including one that comes with a CD containing 50 design templates. Come to www.paper.com for all the Southworth grades.

Stora-Enso announces a restructure

Stora-Enso merged its North American operations into global product divisions. The North American coated magazine, uncoated magazine, and newsprint will now be Stora Enso Publication; Fine Paper will be Stora Enso Fine Paper; and Specialty Papers will be integrated into Stora Enso Packaging Boards.

Summary of Uncoated Wood Free Market

Overall summary of Uncoated Woodfree market includes
-Weyerhaeuser, Domtar, Boise all announced a $40/cwt ($800/ton) price increase.
-Grades includes copy paper, reply card, opaque, and forms bond
-Paper.com predicted this would not be successful - and to date - this increase has been pushed back twice
-Producers felt they could capture this increase because of
-Increased costs (chemicals, energy, benefits, freight)
-North American capacity closures - 6 paper machines; 640,000 tons; 4.1% of capacity last 12 months.
-Seasonal upturn in demand
-New higher brightness sheet now offered
-New Uncoated sheet offering
-International Paper was first to announce increasing brightness from 84 to 92 on offset and 88 to 94 on opaque.
-IP produces 3.5million tons of uncoated paper (entire North American capacity 13million tons)

Hurricane Katrina Hurts Paper Industry

We read about the aftermath of Hurricane Katrina, and all reports are very bad. Specific to the pulp and paper industry, the hurricane had many negative effects. Local infrastructure - transportation, electricity, communication, and floods - also affected many paper mills in the area. The chemical industry has many facilities that produce products for the paper industry are concentrated in the Gulf States. Most notable Hercules and Dupont have a large presence.
Mills that were shut down include Tembec, Koch Cellulose, Boise Cascade, Weyerhaeuser, Georgia-Pacific, and Parsons & Wittemore.
Also, a large percentage of pulp and paper that is imported into the USA enters the country through the gulf port. Brazil reported thousands of tons of pulp at the Port of Mobil were idle and possibly damaged.

Cascade to shut down a Paper Machine

Cascasdes Fine Paper will reduce its capacity in its Thunder Bay, ONT mill. This mill produces coated free sheet and specialty papers. The company will shut down #5PM and associated converting equipment. The paper machine was installed in 1920. Total capacity of the mill is 160,000tons per year.

NewPage Paper Mill announces slow down

NewPage Paper (the new owner of the MeadWestvaco paper plants) recently announced it will operate its
#7PM in Luke, MD to a reduced schedule. This machine produced 55,000 tons per year of coated paper.

USA Paper Industry needs Investment

Interesting article in this month's PaperAge Magazine confirming the lack of reinvestment in
USA Pulp and Paper mills. The article reveals our domestic industry not remaining in a competitive position
and that we have lost market share to off shore producers.
Investments continue for new paper machines in Europe and Asia while USA assets deteriorate.
Capital spending in USA peaked in 1990 at $20billion and, today, industry spends between $4 - 5billion.
Majority of domestic paper machines are over 20 years old and are no longer truly competitive in a global economy.
Many producers have reviewed entry into specialty grades, but soon learn their equipment does not fit the market's
demands.
Article concludes that 4 out of top 5 paper companies headquartered in USA and consolidation
continues.

AF&PA annual meeting

SAVE THE DATE
The American Forest and Paper Association has confirmed the meeting date for the annual
meeting held in New York City's Waldorf Astoria Hotel.
The dates are April 9 - 12, 2006

Boise Increases Penetration into Specialty Market

Boise Cascade confirmed it will invest $60million to convert existing paper equipment for the production of specialty grades. The company's Wallula, WA 250" #3 paper machine will produce pressure sensitive release liners and face stock. This new capacity will generate a total of 200,000 tons of specialty paper. The conversion is estimated to be complete at the end of 2006.

Market update on Uncoated Free Sheet

Most recent market intelligence outlines commodity market paper prices as
-Cutsize (copy paper) $800/ton
-Offset rolls $700/ton
This is for large wholesale business.
If an end user purchases very large volume, rumor outlines above pricing
less $40/ton on the spot market.

Paper Industry Week in Review

Paper Industry continues to witness pressure - many increased costs (energy, freight, chemicals, health benefits, etc) and cannibalize from electronic communication and low priced offshore competition - yields an industry that constantly attempts a much needed price increase - but market factors deny success.
-The containerboard producer’s announced a $30/to increase for this Fall. Competition remains fierce, and ability to confirm an increase is doubtful.
-Pulp producers continue to announce intent to increase NBSK and NBHK market pulp pricing. Inventory levels and sluggish paper demand make this increase difficult.
-Boise is the newest to attempt an uncoated free sheet (copy paper) price increase of $60. Earlier, we reported that International Paper, Weyerhaeuser, and Domtar announced, and failed, a price increase.
-High Brightness Newsprint announced an increase of $35-45/ton effective November1. This is for groundwood papers of 65 - 75+ brightness.
-Coated papers also announce a price increase odf $60/ton for November shipments. This one has a slight chance with catalogue printing in high gear - demand for coated papers strong 4th quarter.
Come to Paper.com for all your market information.

Xerox updates Line of Papers

Xerox has revised its copy paper line to increase both brightness and shade of its papers. They will combine the 4200 Multipurpose and the 4024 into one product. The new grade will offer 92 brightness and a bluer-white shade. The grade will be called Xerox Business 4200, available from 20lbs to 110lbs Index. The grades are available from Paper.com and are suitable for such as uses as reproducing documents, memos, reports, and presentations.

Xerox updates Line of Papers

Xerox has revised its copy paper line to increase both brightness and shade of its papers. They will combine the 4200 Multipurpose and the 4024 into one product. The new grade will offer 92 brightness and a bluer-white shade. The grade will be called Xerox Business 4200, available from 20lbs to 110lbs Index. The grades are available from Paper.com and are suitable for such as uses as reproducing documents, memos, reports, and presentations.

Georgia Pacific and Weyerhaeuser to Reduce Production

Georgia Pacific, the world's largest producer of tissue, will reduce its work force by 1000 employees. They are also reviewing the possibilities of closing down four tissue paper machines.
Weyerhaeuser plans to close a paper mill in Canada, this will effect 690 employees.

Weyerhaeuser to close paper mill

Recent reports outline Weyerhaeuser's decision to close the Port Albert, Sask, pulp and paper mill. Weyerhaeuser is reviewing all of its facilities in an effort to study which are performing and which are not.
www.paper.com carries many of the Weyerhaeuser brands.

Smart Papers Expands the Synergy Line

Smart Papers recently expanded the Synergy premium uncoated line to include many new offerings.
The line now includes
-19 colors (Five new)
-Five finishes, including very smooth, linen and laid
-A watermarked line
-Archival - acid free and lignin free
-Two new 100% post consumer recycled sheets
These grades, all available from www.paper.com can be used for many applications including
Annual Reports, Brochures, Newsletters, Stationery, Point of Purchase displays, Presentation Covers,
and so much more.

October Pulp Market Update

Most of the pulp producers announced a price increase of $10 to 20/ton for October.
NBSK grades increased $20/ton.
NBHK grades increased $10/ton
Although pulp inventory levels are down, paper demand, therefore, pulp demand
continues to be soft. This increase WILL be difficult for most buyers
to accept.

Paper Industry remains Weak

Almost every sector of the paper industry remains weak with reference to demand - despite a good economy. Major concerns remain high energy, chemical, and transportation rates, currency fluxuations, and 'off shore' capacity expansions. The industry continues to restructure - but major fundamental changes must occur for future success of the USA paper industry.
Paper.com has a huge array of papers for every requirement.

Paper Industry remains Weak

Almost every sector of the paper industry remains weak with reference to demand - despite a good economy. Major concerns remain high energy, chemical, and transportation rates, currency fluxuations, and 'off shore' capacity expansions. The industry continues to restructure - but major fundamental changes must occur for future success of the USA paper industry.
Paper.com has a huge array of papers for every requirement.