<b>North American Newsprint Production Climbs</B>

The production of newsprint at North American mills shot up 4.3 percent for August compared to figures the same time last year. According to the Pulp and Paper Products Council, total production stands at 1.349 million metric tons, compared to last August's figure of 1.293 million metric tons.

The figure for the month pushed the eight-month production figure to 10.679 million metric tons, a 2.1 percent improvement from figures the same time last year.

Reflecting the improved environment for newsprint, the operating rate jumped to 98 percent of capacity, compared to last August's operating rate of 92 percent of capacity. For the first eight months the operating rate stands at 98 percent of capacity, compared to last year's operating rate of 94 percent of capacity.

The improved market for newsprint is seen by both U.S. and Canadian mills. For August U.S. mills realized a 3.8 percent increase in production, while Canadian mills saw a 4.7 percent increase in production. For the first eight months production at U.S. mills is up 5 percent to 4.489 million metric tons, while Canadian mills saw a much slimmer 0.1 percent increase for the year.

The shipment of newsprint from North America also improved for both August and the first eight months. According to the Pulp and Paper Products Council shipments for the month stand at 1.351 million metric tons, a 3.5 percent improvement from last August. For the first eight months shipments reached 10.672 million metric tons, a 3.8 percent improvement.

Newsprint shipments from Canada climbed 5 percent for August, and by 2.7 percent for the first eight months. Shipments from U.S. sources increased by 1.5 percent for August and by 5.3 percent for the first eight months.