Paper Companies slow down on Capital Expenses

Many paper mill managers continue frustration in not having capital available to allow for updating equipment. With consolidation, globalization, increased costs, and lack of capital, North American mills face an increasingly difficult market to effectively compete. Many mill managers question how North American Paper mills will survive. The industry clearly is not generating required profits to allow for reinvestment in plant, processes, and equipment. Most capital spending today is allocated to making the facility more energy efficient, accordingly, projects that improve pulping and paper making operations are non-existent.