Challenge of capital intensity forces industry to rethink business decisions

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 [...]