-Well over 50% of all the papers that end up in consumers’ hands had some percent-recovered fiber.
-USA paper industry plants 5 new trees for every American, each year.
-USA forest has increased 39% since 1952
-A recycled fiber can only be used 5-10 times before it becomes too
weak to include in production of quality paper
-If 100% of paper production were made from 100% post consumer paper – the world would only be able to produce paper for 6 months
before running out of fiber.
-Note: some paper – books, tissue, and archived documented are seldom or never enter the recycle stream for fiber.
-USA has 873billion acres of land that are used solely for production of commercial products – only 2% are used to harvest trees each year.
-USA pulp and paper manufacturers plant two trees for every one
taken for production.
-Paper.com recently introduced a “Green” store filled with thousands of environmentally friendly papers.
Tuesday, January 08, 2008
Thursday, January 03, 2008
Total Printing/Writing Paper Shipments Up 0.9%
AF&PA reported on the Paper market-
Overall U.S. printing/writing paper shipments increased 0.9% in November compared to the prior-year period, according to the Pulp and Paper Products Council (PPPC). Year-to-date, total shipments declined –0.9%. Coated mechanical shipments were down –0.8% from the previous November, yet rose 5.2% year-over-year. Coated freesheet shipments fell –1.1% for the month and –3.7% year-to-date compared to the prior year. Uncoated freesheet shipments dropped –3.5% in November and –4.3% year-over-year.
Overall U.S. printing/writing paper shipments increased 0.9% in November compared to the prior-year period, according to the Pulp and Paper Products Council (PPPC). Year-to-date, total shipments declined –0.9%. Coated mechanical shipments were down –0.8% from the previous November, yet rose 5.2% year-over-year. Coated freesheet shipments fell –1.1% for the month and –3.7% year-to-date compared to the prior year. Uncoated freesheet shipments dropped –3.5% in November and –4.3% year-over-year.
Cenveo to Buy Rex Corporation
Cenveo Inc., a commercial printer and packaging manufacturer, has agreed to buy privately held Rex Corp. for an undisclosed cash value. The deal is expected to close in the first quarter. Jacksonville, Fl.-based Rex employs 170 and has annual revenue of $40 million.
Wausau Reports on Recent Survey for Bright Colored Papers
C&R Research just announced that nearly 75% of designers prefer Wausau’s Astrobright to other brands of bright colors. The survey confirmed that most popular colors are yellow and green, followed by blue, red, orange, pink, and purple.
Most bright colored stock is used for flyers, card stocks, covers, brochures and newsletters.
Paper.com sells the Astrobrights as well as the comparable products
Such as Bright Hue from Mohawk and Smart Brights.
Most bright colored stock is used for flyers, card stocks, covers, brochures and newsletters.
Paper.com sells the Astrobrights as well as the comparable products
Such as Bright Hue from Mohawk and Smart Brights.
Wausau Papers Introduces New Grades
Wausau recently announced the introduction of an expanded Astropaque Cover line with higher caliper and more bulk. This is the perfect grade for heavy duty applications and business cards. The grade is now available in smooth or high caliper in attention getting 98 brightness and is certified by Forest Steward Council (FSC).
The company also introduced Crinkles, a grade designed to appear like a handmade sheet for the crafters and Scrapbookers. This grade is suitable for laser printers, it is available in 10 earth colors, and is acid free / lignin free. Paper.com markets all the Wausau grades and most items ship same day.
The company also introduced Crinkles, a grade designed to appear like a handmade sheet for the crafters and Scrapbookers. This grade is suitable for laser printers, it is available in 10 earth colors, and is acid free / lignin free. Paper.com markets all the Wausau grades and most items ship same day.
Paper.com - one of the World’s Largest Paper Websites - Introduces Newly Designed Site
P. Scott Vallely, a paper industry executive; and John Engel, an expert in web design and internet marketing teamed up 5 years ago to form Paper.com. This profitable Internet company recently introduced a revised design for a completely new look. Paper.com has nearly 40,000 paper products – representing paper grades for markets such as the office from inkjet to laser to digital; writing, text and cover papers; exotic papers for the scrapbookers; thousands of printed and unprinted papers for schools, restaurants, hotels, and professional offices; personalized printing for invitations, announcements, and calling cards; specialty and imported papers for Artists; and, coated and uncoated papers for printers. The site is conveniently divided into 8 sections for easy shopping – Office, Stationery, Art, School, Seasonal, Theme, Scrapbooking and Environmentally Friendly papers. The website has nearly 50 vendor warehouses throughout the United States and ships within 24 hours after receipt of order – from a single sheet of paper to multi truckloads. The site now enjoys nearly 6000 unique visitors every day clicking onto www.paper.com
NewPage completes buyout of Stora Enso's North American Plants
The rumored M&A was previously reported by Paper.com, in December, the acquisition of StoraEnso’s North America facilities was completed.
Papermaker NewPage Corp. of Miamisburg, OH, completed its purchase December 21 of Stora Enso’s North American paper-manufacturing operations for $2.556 billion.
NewPage now operates 12 paper mills with 26 paper machines located in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 5.5 million tons of paper. NewPage is now the largest manufacturer of coated paper in North America, based on capacity.
Paper.com has all the NewPage grades in stock and ready for immediate shipment.
Papermaker NewPage Corp. of Miamisburg, OH, completed its purchase December 21 of Stora Enso’s North American paper-manufacturing operations for $2.556 billion.
NewPage now operates 12 paper mills with 26 paper machines located in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 5.5 million tons of paper. NewPage is now the largest manufacturer of coated paper in North America, based on capacity.
Paper.com has all the NewPage grades in stock and ready for immediate shipment.
Recycled Paper Fact
EPA just reported that one ton of recycled paper stock can save up to 4000 kilowatt hours and 17 mature trees. The Paper.com website introduced a ‘green’ store to support all the Environmentally Friendly papers.
Monday, December 31, 2007
PULP & PAPER
As reported by Paperage magazine
Pulp production is being fueled by export containerboard volumes and also by export pulp demand created by the weak U.S. dollar. Prices are also being pushed by Canadian and Brazilian costs of production and higher prices for domestic fiber created by fewer operating sawmills generating wood chips. Additional softwood and eucalyptus pulp capacities coming online in South America and recycled containerboard capacity in China could disrupt the steady pace of price increases seen this year. U.S. producers should still have one good year left in 2008, but it will be a draw for Canadian pulp exporters.
Paper demand in North America is saturated and will continue to be negatively influenced by the move to electronic advertising and a lower level of economic activity. Supply curtailments by International Paper at Bastrop, LA and Pensacola, FL and by Domtar at Woodland, ME, Port Edwards, WI, and Gatineau, QC may buttress domestic uncoated freesheet prices and even provide an opportunity for appreciation, but the grade will still lose some volumes to lower priced uncoated mechanical products made by AbitibiBowater and supercalendered grades which will be made by NewPage. Coated freesheet made by the latter has also been losing market share, and in a slowing economy this decline in demand will dominate prices, despite the fall in imports due to the weak U.S. dollar. The deciding profitability factor for North American paper producers will be cost reduction that can still be wrung from high cost capacity.
Pulp production is being fueled by export containerboard volumes and also by export pulp demand created by the weak U.S. dollar. Prices are also being pushed by Canadian and Brazilian costs of production and higher prices for domestic fiber created by fewer operating sawmills generating wood chips. Additional softwood and eucalyptus pulp capacities coming online in South America and recycled containerboard capacity in China could disrupt the steady pace of price increases seen this year. U.S. producers should still have one good year left in 2008, but it will be a draw for Canadian pulp exporters.
Paper demand in North America is saturated and will continue to be negatively influenced by the move to electronic advertising and a lower level of economic activity. Supply curtailments by International Paper at Bastrop, LA and Pensacola, FL and by Domtar at Woodland, ME, Port Edwards, WI, and Gatineau, QC may buttress domestic uncoated freesheet prices and even provide an opportunity for appreciation, but the grade will still lose some volumes to lower priced uncoated mechanical products made by AbitibiBowater and supercalendered grades which will be made by NewPage. Coated freesheet made by the latter has also been losing market share, and in a slowing economy this decline in demand will dominate prices, despite the fall in imports due to the weak U.S. dollar. The deciding profitability factor for North American paper producers will be cost reduction that can still be wrung from high cost capacity.
Paper Price Forecast for 2008
Because so many Canadian mills and several USA mills have shuttered production facilities and raw materials continue upward cost pressure; paper prices are forecasted to increase. Coated paper in particular is forecasted to increase 15% in first quarter 2008 and another 15% by midyear. Copy paper and papers for desktop printers will increase 10% in 2008. Printers will feel the additional cost increase from inks, forecasted to increase @10% in 2008. Paper.com continually attempts to offer paper at competitive prices, but producers often forced the site to increase prices.
Quick Snap Shot of Major Paper Markets
The uncoated freesheet paper market continued its downward track through 2007 as USA shipments dropped 6% from 2006. Electronic storage, raising postage costs, and automatic invoice payments, even proxy statements now sent electronically were all sited for reduction. The industry has answered the contraction in demand with a corresponding curtailment in supply (see Paper.com News Release on Paper Industry Blog at www.paper.com) Most recent reductions came from International Paper and Georgia Pacific – these two combined removed 700,000 tons. As a result, manufacturers were able to introduce price increases throughout 2007. Demand is expected to continue to decline – experts believe 1.5-2% decrease in 2008.
Coated magazine papers (Groundwood containing) experienced tight supply/demand conditions and lead times were the longest witnessed in several years. Like uncoated papers, the coated producers shuttered equipment – removing some 750,000 tons from the market.
The future is a little uncertain in that China and Japan have announced new equipment coming on line – 4 new machines in Japan and 2 in China. These 6 to start coming on line as early as 2009.
Coated Freesheet not quite as snug as the Groundwood coated market. Producers saw a market demand for product decline 6%.
Newsprint – the paper used for newspapers continues to decline at an increasing speed. Demand forecasted to be down 11% for 2007. This, mainly due to fewer readers – cannibalized by electronic communication.
Coated magazine papers (Groundwood containing) experienced tight supply/demand conditions and lead times were the longest witnessed in several years. Like uncoated papers, the coated producers shuttered equipment – removing some 750,000 tons from the market.
The future is a little uncertain in that China and Japan have announced new equipment coming on line – 4 new machines in Japan and 2 in China. These 6 to start coming on line as early as 2009.
Coated Freesheet not quite as snug as the Groundwood coated market. Producers saw a market demand for product decline 6%.
Newsprint – the paper used for newspapers continues to decline at an increasing speed. Demand forecasted to be down 11% for 2007. This, mainly due to fewer readers – cannibalized by electronic communication.
Printing Impressions announces top Printers for 2007
Top 5 Book Printers
-Quebecor World
-Visant
-Courier Corp.
-Bertelsmann Arvato
-Taylor Publishing
Top 5 Publication Printers
-Quebecor World
-Quad/Graphics
-Brown Printing
-Publishers Press
-The Sheridan Group
Top 5 Catalog Printers
-Quebecor World
-Quad/Graphics
-Arandell Corp
-Consolidated Graphics
-The Sheridan Group
Top 5 Direct mail Printers
-Valassis
-Visant
-IWCO Direct
-Quebecor World
-Clondalkin Group
-Quebecor World
-Visant
-Courier Corp.
-Bertelsmann Arvato
-Taylor Publishing
Top 5 Publication Printers
-Quebecor World
-Quad/Graphics
-Brown Printing
-Publishers Press
-The Sheridan Group
Top 5 Catalog Printers
-Quebecor World
-Quad/Graphics
-Arandell Corp
-Consolidated Graphics
-The Sheridan Group
Top 5 Direct mail Printers
-Valassis
-Visant
-IWCO Direct
-Quebecor World
-Clondalkin Group
Environmentally Friendly Papers continue to be Popular
2007 was the year for tremendous push for environmentally friendly papers and FSC Certification. The THINK GREEN campaign continues. The website, Paper.com, established an entire store within its site strictly for Environmentally friendly papers. Some recent manufactures that were added to the website’s list of ‘green papers include, Newpage’s Sterling Ultra for digital and coated applications; Smart Paper’s 100 percent post consumer, FSC, Genesis paper; Galerie Art – the only 100% post consumer paper designed specifically for Digital application; all the Mohawk Papers – produced from wind power; and, all the new Wausau Paper recycled grades.
2007 Major Mergers and Acquisitions in the Printing Industry
Valassis acquired ADVO ($1.2Bilion)
-M&F purchases John Harland ($1.7bilion)
-Cenveo buys Cadmus Communications ($430million)
-Cenveo also buys ColorGraphics, Printegra, and Commercial Envelope
-RRDonnelly purchases Von Hoffmann ($412million)
-EarthColor bought L.P. Thebault
-Synergy Graphics acquired Sunny Industries
-Consolidated Graphics buys Pikes Peak and Cyril Scott
-M&F purchases John Harland ($1.7bilion)
-Cenveo buys Cadmus Communications ($430million)
-Cenveo also buys ColorGraphics, Printegra, and Commercial Envelope
-RRDonnelly purchases Von Hoffmann ($412million)
-EarthColor bought L.P. Thebault
-Synergy Graphics acquired Sunny Industries
-Consolidated Graphics buys Pikes Peak and Cyril Scott
Papiers Gaspésia Sells Quebec Mill for $40 Million
Papiers Gaspésia has agreed to sell its Quebec mill and associated equipment to Vantek Inc. for US$40 million. Papiers Gaspésia is owned by Société générale de financement du Quebéc, Solidarity Fund QFL, Tembec and Investissement Québec. Vantek plans to sell the main equipment and remove the buildings. Liquidities generated from the deal will be invested in an economic development fund for new projects in the region.
Tuesday, December 18, 2007
Thoughts on Digital Printing
The Domtar Paper website shared many interesting points on digital printing we share in this Paper.com news release
What does digital mean? First of all, let’s clarify what we mean when we talk about digital printing. In the true sense of the word, it means every form of printing that uses digital technology. This includes everything from the laser and inkjet printers in your office to a full-length Xerox iGen3. And even Direct Imaging presses (Heidelberg DI) would fall into this category, as they produce plates on press using digital technology. To simplify: The main difference is that offset presses work in a moist ink-based environment, while digital printers work in a warm, toner-based one. Just think of the cozy warmth that evaporates from a sheet of paper when it first comes out of your laser printer. Digital papers versus digital papers No, this is no typo. Remember I mentioned that “digital” refers to any printer from your laser printer to high speed ones. In many cases, when mills call out papers as “digital,” all they are referring to is cut size sheets that work well in your laser and inkjet printers - 8.5 x 11”, 11 x 17”, you get my drift. We are purely talking size here, as your desktop printer is generally a very forgiving breed when it comes to surface and weight. High-speed digital presses, the ones you and I think of when we hear the term “digital,” are a very different kettle of fish.
Digital Color Production Presses Now we are talking! This is the technology that we think of when we hear the word “digital.” HP Indigo, Xerox iGen3 and Kodak NexPress, the most commonly used models, are also referred to as digital production presses. Hear the word “presses” in the terminology. They provide images in full color, high quality and run at much higher speeds (70-100 pages per minute) than your average desktop printer. Papers for these presses have to endure much more stress, having four colors applied to the sheet - often on both sides - and being chased by the high speed of the press. Truly digital papers Due to the enhanced stress placed on these substrates, mills have responded by designing papers that are precision cut, with a specially formulated surface to retain the toner (or inkjet ink) and increased moisture levels of four-to-five percent. This involves much more than just cutting an existing sheet to size. The development of a truly digital paper can take anywhere from six months to a year. “A driving force behind the growth in digital printing is targeted marketing,” says Mark Favus, group product manager, printing and publishing at Domtar. “But it is not just variable data printing that has taken off. Just think of amazon.com, who is now offering to print complete books on demand.” And for the everyday designer like you and me, the growing demand for shorter print runs has created an all- time high in new equipment placement, as well as encouraged printers that have offered digital printing for years to utilize their presses on more than one shift. And with the increased demand for digital printing, mills are responding with increased paper offerings. Coated versus uncoated As 80 percent of any printing done these days is done on coated sheets, you will also see a larger variety of coated papers available for digital presses. The formulas for coatings change from mill to mill, paper line to paper line, and some of these coatings have proven to be naturals when it comes to printing on digital presses. Coated papers are nice, but there are printed pieces whose design would be enhanced greatly if they were printed on uncoated stocks. Some of the presses mentioned already work with a limited variety of uncoated stocks. But, those that don’t require a special surface treatment. For example, uncoated sheets needed a special sapphire treatment in order to run on Indigo presses for years. This treatment was expensive and caused the paper to yellow within six months, which did not allow the paper to be stocked and, in turn, limited availability. Always up for a good challenge, “Domtar is working on the next generation of uncoated papers with a new surface treatment that is less expensive to apply and will not cause any yellowing,” promises Favus. It is not available on the market as I write this article, but keep your eyes open, it is only a matter of months
What does digital mean? First of all, let’s clarify what we mean when we talk about digital printing. In the true sense of the word, it means every form of printing that uses digital technology. This includes everything from the laser and inkjet printers in your office to a full-length Xerox iGen3. And even Direct Imaging presses (Heidelberg DI) would fall into this category, as they produce plates on press using digital technology. To simplify: The main difference is that offset presses work in a moist ink-based environment, while digital printers work in a warm, toner-based one. Just think of the cozy warmth that evaporates from a sheet of paper when it first comes out of your laser printer. Digital papers versus digital papers No, this is no typo. Remember I mentioned that “digital” refers to any printer from your laser printer to high speed ones. In many cases, when mills call out papers as “digital,” all they are referring to is cut size sheets that work well in your laser and inkjet printers - 8.5 x 11”, 11 x 17”, you get my drift. We are purely talking size here, as your desktop printer is generally a very forgiving breed when it comes to surface and weight. High-speed digital presses, the ones you and I think of when we hear the term “digital,” are a very different kettle of fish.
Digital Color Production Presses Now we are talking! This is the technology that we think of when we hear the word “digital.” HP Indigo, Xerox iGen3 and Kodak NexPress, the most commonly used models, are also referred to as digital production presses. Hear the word “presses” in the terminology. They provide images in full color, high quality and run at much higher speeds (70-100 pages per minute) than your average desktop printer. Papers for these presses have to endure much more stress, having four colors applied to the sheet - often on both sides - and being chased by the high speed of the press. Truly digital papers Due to the enhanced stress placed on these substrates, mills have responded by designing papers that are precision cut, with a specially formulated surface to retain the toner (or inkjet ink) and increased moisture levels of four-to-five percent. This involves much more than just cutting an existing sheet to size. The development of a truly digital paper can take anywhere from six months to a year. “A driving force behind the growth in digital printing is targeted marketing,” says Mark Favus, group product manager, printing and publishing at Domtar. “But it is not just variable data printing that has taken off. Just think of amazon.com, who is now offering to print complete books on demand.” And for the everyday designer like you and me, the growing demand for shorter print runs has created an all- time high in new equipment placement, as well as encouraged printers that have offered digital printing for years to utilize their presses on more than one shift. And with the increased demand for digital printing, mills are responding with increased paper offerings. Coated versus uncoated As 80 percent of any printing done these days is done on coated sheets, you will also see a larger variety of coated papers available for digital presses. The formulas for coatings change from mill to mill, paper line to paper line, and some of these coatings have proven to be naturals when it comes to printing on digital presses. Coated papers are nice, but there are printed pieces whose design would be enhanced greatly if they were printed on uncoated stocks. Some of the presses mentioned already work with a limited variety of uncoated stocks. But, those that don’t require a special surface treatment. For example, uncoated sheets needed a special sapphire treatment in order to run on Indigo presses for years. This treatment was expensive and caused the paper to yellow within six months, which did not allow the paper to be stocked and, in turn, limited availability. Always up for a good challenge, “Domtar is working on the next generation of uncoated papers with a new surface treatment that is less expensive to apply and will not cause any yellowing,” promises Favus. It is not available on the market as I write this article, but keep your eyes open, it is only a matter of months
MARKET PULP UPDATE
As 2007 concludes, the pulp market ends with price increases, with a $25/ton increase to $875/ton for NBSK. This is largely a "supply' driven" increase with wood and energy costs driving the market. Additionally, both SBSK and Eucalyptus prices increased $30/mton in December to $840/mton and $805/mton, respectively. Hardwood is reportedly the
tightest portion of the market. Most experts believe the rally will likely continue into 2008.
Pulp chemical costs have also added pressures to the increases (mainly caustic soda and Sodium Chlorate).
tightest portion of the market. Most experts believe the rally will likely continue into 2008.
Pulp chemical costs have also added pressures to the increases (mainly caustic soda and Sodium Chlorate).
Domtar Closing Paper Mill, Cutting Jobs, Curtailing Production
Ross Marowit of Canadian Press and remarks from industry experts.
Workers in Domtar Canada and U.S. paper mills were handed unwelcome news just days before the holidays, when management announced that 625 jobs will be lost next year to address reduced demand for uncoated freesheet paper.
The mill in Dryden, Ont., is being reorganized and the large No. 2 paper machine, which has been running at half capacity, will shut down Dec. 22. And the smaller No. 1 machine idled for two years will restart in mid-January for a net permanent production reduction of 155,000 tons.
The Port Edwards mill in Wisconsin will cease operation in the second quarter of 2008, cutting 165,000 tons of production.
The moves will remove 342,000 tons of production capacity as the Montreal-based company seeks to rebalance supply and transfer production to more efficient facilities.
CEO Raymond Royer said the measures were required to strengthen Domtar's position as the most efficient producer in North America.
''We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,'' he said in a news release.
Some of the product lines manufactured in Port Edwards will gradually be transferred to other unnamed facilities without affecting customers, the company said.
Mark Bishop of RBC Capital Markets said the decision could help to boost prices and shield the company should the faltering U.S. economy slow further in 2008.
''The fundamentals are better now than they were before, so prices on a net basis will ultimately be better than they would be otherwise,'' he said from Vancouver.
The decision follows a similar announcement during the summer to reduce 284,000 tons of paper capacity.
''Combined with today's announcements, Domtar will have closed approximately five per cent of its North American uncoated freesheet capacity in 2007,'' Pierre Lacroix of Desjardins Securities wrote in a research note.
These decisions represents 2.8 per cent of North American freesheet capacity and eight per cent of the Domtar's freesheet capacity.
The decision was foreshadowed in September, when the company suggested that 425,000 tons of paper could be removed from the system next year.
Demand for uncoated freesheet grade has decreased by 5.5 per cent this year, and is expected to continue to decline by one to two per cent annually in the years to come, said Bishop.
A worsening market and economic situation could lead to additional closures, he added.
''I think there's likely more to come,'' he said, noting that Dryden has been an underperforming asset for a long time and could face an uncertain future if conditions worsen.
Rumors circulated for months that Domtar would close the facility. The company issued a news release last month to deny a report that Domtar was planning to announce the closure of the mill. Domtar spokesman Michel Rathier said the company hopes its decision will enhance the viability of the Dryden mill.
Domtar is the largest integrated producer of uncoated freesheet paper in North America after its merger with the fine paper assets of U.S.-based Weyerhaeuser.
Workers in Domtar Canada and U.S. paper mills were handed unwelcome news just days before the holidays, when management announced that 625 jobs will be lost next year to address reduced demand for uncoated freesheet paper.
The mill in Dryden, Ont., is being reorganized and the large No. 2 paper machine, which has been running at half capacity, will shut down Dec. 22. And the smaller No. 1 machine idled for two years will restart in mid-January for a net permanent production reduction of 155,000 tons.
The Port Edwards mill in Wisconsin will cease operation in the second quarter of 2008, cutting 165,000 tons of production.
The moves will remove 342,000 tons of production capacity as the Montreal-based company seeks to rebalance supply and transfer production to more efficient facilities.
CEO Raymond Royer said the measures were required to strengthen Domtar's position as the most efficient producer in North America.
''We need to pursue the consolidation of our production capacity to improve our competitiveness in the North American market, given continued unfavorable economic conditions and a softening of demand for fine papers,'' he said in a news release.
Some of the product lines manufactured in Port Edwards will gradually be transferred to other unnamed facilities without affecting customers, the company said.
Mark Bishop of RBC Capital Markets said the decision could help to boost prices and shield the company should the faltering U.S. economy slow further in 2008.
''The fundamentals are better now than they were before, so prices on a net basis will ultimately be better than they would be otherwise,'' he said from Vancouver.
The decision follows a similar announcement during the summer to reduce 284,000 tons of paper capacity.
''Combined with today's announcements, Domtar will have closed approximately five per cent of its North American uncoated freesheet capacity in 2007,'' Pierre Lacroix of Desjardins Securities wrote in a research note.
These decisions represents 2.8 per cent of North American freesheet capacity and eight per cent of the Domtar's freesheet capacity.
The decision was foreshadowed in September, when the company suggested that 425,000 tons of paper could be removed from the system next year.
Demand for uncoated freesheet grade has decreased by 5.5 per cent this year, and is expected to continue to decline by one to two per cent annually in the years to come, said Bishop.
A worsening market and economic situation could lead to additional closures, he added.
''I think there's likely more to come,'' he said, noting that Dryden has been an underperforming asset for a long time and could face an uncertain future if conditions worsen.
Rumors circulated for months that Domtar would close the facility. The company issued a news release last month to deny a report that Domtar was planning to announce the closure of the mill. Domtar spokesman Michel Rathier said the company hopes its decision will enhance the viability of the Dryden mill.
Domtar is the largest integrated producer of uncoated freesheet paper in North America after its merger with the fine paper assets of U.S.-based Weyerhaeuser.
Sunday, December 16, 2007
Newsprint producer shakeout continues
Newsprint is an uncoated paper that is defined as a grade produced with mechanical (groundwood) fiber and its primary end use is newspapers. The standard basis weight is mainly 30 lbs but weights also include 24 lbs through 35 lbs. Canada is the world leader in newsprint production and the USA is the world’s largest consumer. The bulk of USA newsprint going into daily newspapers. Demand for this grade continues its downward trend (decrease of 10.6% for 9 months 2007 vs. 2006). Many newsprint producers have shuttered equipment as a result.
Top North American Producers (per Pulp and Paper Week Council)
Company Capacity (000) %Market Share
AbitibiBowater 5,755 47.1%
White Birth 1,160 9.5%
Kruger 1155 9.5%
SP Newsprint 990 8.1%
NORPAC 730 6.0%
Catalyst 700 5.7%
Tembec 500 4.1%
Boise Cascade 425 3.5%
Alberta 300 2.5%
Howe Sound 220 1.8%
Total North America capacity 12,200 tons
Top ten producers – 98% of capacity (top 5 – 80%)
Top North American Producers (per Pulp and Paper Week Council)
Company Capacity (000) %Market Share
AbitibiBowater 5,755 47.1%
White Birth 1,160 9.5%
Kruger 1155 9.5%
SP Newsprint 990 8.1%
NORPAC 730 6.0%
Catalyst 700 5.7%
Tembec 500 4.1%
Boise Cascade 425 3.5%
Alberta 300 2.5%
Howe Sound 220 1.8%
Total North America capacity 12,200 tons
Top ten producers – 98% of capacity (top 5 – 80%)
Release Liner for Labels has many Challenges
While the pressure sensitive Industry continues to grow, the threats for poor recylability continue. The 2006 worldwide label demand was nearly 40,000 million square meters spread out as North America 27.5%; South America 7.6%; Europe 31.9%; Asia 29.2% and rest of world 4.0%. The liner continues to be a large component of the cost to the label (@20-30%) and it continues to be focus of environmental sustainability – for lack of recyclable (also a wasteful ‘throw away’).
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