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Paper and pulp companies need to replace outdated paradigms with a more dynamic model of paper economics. The old paradigm of becoming a low-cost provider does not work for all companies and leads to the erosion of shareholder wealth. Instead, companies need to focus on increasing shareholder wealth by investing in projects that cover their cost of capital. Such projects may include examining internal costs, establishing a presence in foreign markets, using new technologies, reviewing customer needs, and introducing management ownership., Editor's note: The following article is based on interviews with paper industry executives and senior analysts conducted as part of the International Forest Products Executive Forum, sponsored by Pulp & [...]

Market pulp prices might continue to fluctuate in spite of the pulp and paper sector's efforts to stabilize the market according to an NLK study. NLK forecasts that global demand for writing/printing papers will reach about 100 mil metric tons and demand for bleached pulp will reach about 103 mil metric tons in the year 2000. The pulp and paper sector could diminish the market pulp volatility by considering derivatives trading that will provide hedging options to traders and buyers of market pulp., Is market pulp a mature market segment with immature market behavior? Certainly the past three years suggest that this is the case. In the past 20 years, there have been [...]

The favorable economic situation of the North American paper and pulp markets has boosted pulp and paper manufacturers' capital investments in new plants and equipment. Pulp and paper manufacturers are spending more money on mill upgrades to improve productivity and better control operating costs. Other investment options include share buy backs and acquisitions. Canadian pulp and paper mills also plan to increase capital spending for mill modernization and expansion projects., THE SUDDEN UPSWING IN CAPITAL SPENDING in the 199495 period, which closely paralleled rising profits for North American producers on the way up, is now being influenced the same way [...]

The economic conditions facing the paper and pulp industries are on the upswing, and the industries are flush with cash. The industries' revenues are dependent on prices, and revenues are volatile due to the volatility of prices, and the industries historically have no control over prices. However, there is a demand for cost cutting demands created by long-term price pressures, which creates a challenge to firms' capital budgeting programs., THE PULP AND PAPER INDUSTRY faces a challenging future. The industry is just emerging from one of its least profitable periods ever, largely self-inflicted due to over-expansion in the late [...]

Market pulp prices have risen in response to a worldwide increase in demand that began early in 1994, with the trend expected to continue through 1995 and possibly into 1996. Factors contributing to the growth in demand in 1994 include a shortage of hardwood pulp in Europe, an anticipated strike in British Columbia, and increased demand for paper in Southeast Asia. Overall improvements in the global economy by the summer of 1994 also contributed to the trend. Little increase in market pulp capacity is expected for 1995, while the demand should continue to be strong., THE NORTH AMERICAN PULP AND PAPER INDUStry is currently enjoying the best market conditions it has experienced in the past five years. All sectors of the marketplace, from newsprint to [...]

The pulp and paper industry has undergone technological advances under changing economic conditions since the 1960s. During that decade, focus was on operation improvement programs. In the 1970s and the 1980s, the emphasis was on process technology improvements. In the 1990s, the trend is cost reductions because of global recession. It is no longer sufficient that production tonnage be increased to the limit of equipment capability. Developments in greenfield installations prove that superior-quality products can be produced at low market prices., Identifying process equipment inefficiencies can show mills how to reduce production costs, lower emissions through rebuilds and modernizations Editor's Note: This is the first of a two-part series offering advice [...]

The U.S. paper industry is set to benefit from a sustained recovery in the U.S. economy, which should begin this year. However, the recession's effects will carry over into 1992, [...]

Unprecedented restructuring via mergers and mill closures is lowering costs as the industry tries to regroup after lackluster year WITH LITTLE IMPROVEMENT EXPECTED on industry pricing in 1999, North American [...]

Chemical paper-grade market pulp production is increasing around the world, but in North America pulp capacity growth is down. International capacity will increase to 36.7 million metric tons, or 9.4% from 1994 to 1997, but growth in the US will slow to 0.3% during 1994 to 1998. Overall woodpulp capacity growth is 0.6%. New capacity is expected to be found in Indonesia, Brazil, Canada, Finland and Sweden., Chemical paper-grade market pulp capacity growth is doing a slow crawl in North America, quite in contrast to the rapid pace of development in the southern hemisphere. Adding to the [...]

Pulp producers in British Columbia are keeping a watchful and concerned eye on the recently elected leader of the New Democratic Party government, who has expressed a willingness to reconsider [...]

Corrugating medium paperboard is made from recycled fiber and semichemical pulp, which should not contain more than 25% recycled fiber. The standard sheet weight is 26 lbs per 1,000 square feet and accounts for 62% of production, a decrease from 80% of production in the 1970s. Shipments of corrugated boxes increased 5.4% in 1993, but production increased only 2.4% because many paper mills reduced their inventories. Prices of corrugating medium had a low price of $270/ton in the 3d qtr 1993, but are expected to be $415-$425/ton in October 1994., GRADE STRUCTURE. Corrugating medium, the middle fluting material used in corrugated containers, is made from both semichemical pulp and recycled fiber. Semichemical medium is not supposed to contain more than [...]

Alabama is the second highest ranking state for woodpulp production and paper and paperboard production in 1990. Its 20 pulp and paper companies provide the state with the second highest number of mills and companies in the South. Alabama's paper industry is a significant part of the state's trading activities with countries such as Canada and Japan. Over 100 forestry companies in Alabama are engaged in international trade., Home to more than 40 pulp, paper, and paperboard mills, Alabama ranked second in the U.S. for woodpulp production and for combined paper and paperboard production in 1990. The state's [...]

In his speech entitled 'What Ails the Global Pulp Market,' the 'pulp doctor' Ronald J. Slinn blamed the reduced growth in 'appetite' for pulp on the declining economic climate in [...]

Grade structure: Chemical paper-grade market pulp is sold in the open market and does not include captive pulp used onsite or shipped to affiliated mills within North America. Pulp is [...]