RISI Identifies BHK Pulp Lines At Risk Of Closure Increased online capacity and slowed demand growth will put BHK pulp lines at risk around the world

BOSTON, Nov. 19, 2013 /PRNewswire/ -- As new capacity continues to enter the Bleached Hardwood Kraft Pulp (BHKP) market, prices are facing considerable downward pressure triggering adjustments to the industry. With demand growth of BHK pulp slowing, it is expected that small, high-cost market BHK pulp mills and lines will close. These findings were recently released in a major new study by RISI, the leading information provider for the global forest products industry.

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"The size of adjustments necessary to balance the market will be large. We've already seen Sodra's Tofte pulp mill close this past August. Moving into 2014, if paper demand continues to disappoint, all pulp prices will be under substantial downward pressure," said Kurt Schaefer, study Author, and Vice President of Pulp and Recovered Paper at RISI.

The Global BHK Pulp Mill Risk study identifies which lines are most likely at risk of closure over the next two years. It uses RISI's proven methodology to analyze mill-level risks as well as company-level risk factors for producers of market pulp and pulp for use at affiliated operations.

Identified in Global BHK Pulp Mill Risk

  • Assessment of all market BHK pulp lines currently in operation
  • Identification of specific BHK pulp lines and mills at risk of closure
    • Companies and regions at the highest risk of closure
    • Impact company strategies will have on shutdown risk

Companies analyzed in this study include:

Alberta Pacific, Altri, APRIL, Arauco, Bukoza Holding, Burgo, Carter Holt Harvey, Cel. Argentina, Cellulose du Maroc, CENIBRA, Chenming, Chuetsu P&P, Chung Hwa Pulp, CMPC, Daish.-Marubeni, Domtar, Eldorado Brasil, ENCE, Fibria, GP Cellulose, Hokuetsu Kishu Paper, Iggesund Pbd., Ilim Group, International Paper, Irving P&P, Lecta, Lwarcel Celullose, Metsa Board, Metsa Fibre, Mitsubishi Paper, Mondi, Moorim P&P Co, NewPage, Nippon Daish. Pbd., Nippon Paper, Nobrecel, Oji Paper, Old Town F & F, Phoenix P&P, Portucel Soporcel, PT TEL, Pulp Mill Holding, Resolute Forest Products RockTenn, Sabah Forest Industries, SAPPI, Sinar Mas/Fibre Exc., Sinar Mas/Hainan P&P, Sinar Mas/Indah Kiat, Sinar Mas/Lontar Papyrus, Sinar Mas/Woodland, Sodra Cell, Stora Enso, Suzano, Svilosa AD, Taiwan P&P, UPM, Veracel Celulose, Verso Paper Corp., Weyerhaeuser, Yunnan Yunjing

For more information on this study, please visit www.risi.com/globalBHKP

About RISI (www.risi.com)

RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, biomass, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout North and South America, Europe and Asia.

For Press Enquiries, please contact:
Gianna DeMonte
Communications Associate 
O: +1.781.734.8965
E: gdemonte@risi.com

SOURCE RISI



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