RISI Identifies New Impending Woodfree Capacity Shuts

Falling woodfree demand in North America and Europe, and oversupply in Asia, will put woodfree machines at risk around the world.

Oct 14, 2013, 07:47 ET from RISI

BOSTON, Oct. 14, 2013 /PRNewswire/ -- The impact of electronic media on woodfree paper end-uses over the next five years will pressure producers to continue removing capacity from the market. In developed regions, producers will make closures to keep pace with demand declines; while an oversupplied market will motivate reductions in Asia. 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 Global Woodfree Risk of Closure Study identifies which machines are most likely at risk of closure in the coming years. It uses RISI's proven methodology to analyze mill-level risks as well as company-level risk factors for producers of commodity grades of uncoated and coated woodfree papers.

"International Paper's recent closure of its Courtland mill took most market observers by surprise as it was a highly cost-competitive asset. However, other important, company-level factors that we consider, indeed place International Paper as presenting the highest company-level strategic threat of any uncoated freesheet producer in North America," said Derek Mahlburg, Graphic Papers Economist, RISI.

Identified in the Global Woodfree Risk of Closure Study:

  • Key risk factors for woodfree paper mills
  • How much woodfree capacity needs to be removed from the market over the next 3-5 years
  • How the risk outlook differs in Europe, North America and Asia, and how developments in each region affect the rest of the world
  • Machine-by-machine risk analysis informed by both the competitiveness and characteristics of each machine; as well as the situation of the parent company.

North American and European companies analyzed in this study include:

American Eagle, Appleton Coated, Appvion, Arctic Paper, Arjowiggins, Arkhangelsk, Boise, Burgo Group, Cascades, Crown Van Gelder, Domtar, Double A, Evergreen Packaging, Exacompta Clairefontaine, Fedrigoni Spa, Finch Paper, Flambeau River Papers, Georgia-Pacific, Glatfelter, Harbor Paper, Iberpapel, Ilim Group, International Paper, Lecta, Metsa Board, Mondi, NewPage, Paper Excellence, Portucel, Sappi, Stora Enso, UPM, Verso and West Linn

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

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