International Paper will curtail 2.1Million tons of capacity. The company, the world's biggest supplier of containerboard, will shutter 1.4Million tons of containerboard (note, this is 12% of the mill's capacity and 4% of the USA capacity). Regarding the uncoated shutdown, International Paper will close 600,000 tons of capacity which is 19% of the mill's capacity. They are the second largest producer of uncoated paper. IP also reported to curtail 140,000 tons of bleached coated board which is 7% of their capacity.
Until the markets improve, the mills effected by this announcement include, plants in Albany, Ore., Pineville, La., Franklin, Va., and the Valliant, Okla., mill.
Following these permanent shutdowns, IP will have about 10 million tons of North American containerboard capacity, 2.6 million tons of North American uncoated freesheet production capacity and 1.7 million tons of North American coated paperboard capacity.
This should significantly assist the mill in correct the excess supply and poor demand.
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IP seems well disciplined. When do we think the rest of the industry will follow with down time. Does not appear fair that because IP is the biggest, they are the only ones to take downtime.
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