Nonmetallics

The American Forest & Paper Association (AF&PA), Washington, D.C., has released its 49th Annual Survey of Paper, Paperboard and Pulp Capacity, which reports that U.S. paper and paperboard capacity edged down 0.8 percent in 2008 to 96.3 million tons, slightly below the 1 percent annual rate of contraction recorded from 2001 through 2007. Cumulatively, paper and paperboard capacity has contracted 7.3 percent since its 2000 peak level.

The survey reports U.S. industry capacity data for the years 2008 through 2011 for all grades of paper, paperboard and pulp, based on a comprehensive survey of all pulp and paper mills in the U.S.

According to the survey, 18 U.S. mills were permanently closed in 2008, shutting down 27 paper and paperboard machines, and an additional 14 machines were permanently shut down at other mills. Furthermore, several mills and machines have been indefinitely idled in response to weak market conditions but have not been removed from the survey base because they may be restarted in the future. In 2007, 17 mills and 38 machines were permanently closed.

The survey projects paper and paperboard capacity to decline 1.8 percent in 2009 and then to expand by 0.3 percent in both 2010 and 2011.

Recycled medium capacity rose by 109,000 tons, while semichemical medium capacity declined by 121,000 tons, reflecting in part the closure of a semichemical medium mill in October 2007 and a recycled medium machine last year. Corrugated medium capacity is projected to decline an additional 1.2 percent in 2009, or about 130,000 tons, resulting from residual effects of last year’s closures. Corrugated medium capacity is slated to rise by 0.4 percent in 2010 and by 0.5 percent in 2011.

Recycled paperboard capacity expanded 0.2 percent in 2008. Last year’s increase in recycled board capacity mainly took place in the "other" category, which increased by 0.8 percent or 20,700 tons.

Five recycled paperboard mills (seven machines) closed their doors during the second half of 2008, and another mill will be shutting down this year. The impact of these closures is projected to result in a 5.8 percent decline in recycled paperboard capacity this year. The survey shows recycled paperboard capacity dropping 0.3 percent in 2010 and remaining flat in 2011.

Newsprint production continues to decline, with last year’s capacity figure dropping by 8.6 percent. The AF&PA forecasts a further 1.7 percent decline this year, followed by a 0.7 percent decline next year and a 1 percent decline in 2011.

Total printing-writing paper capacity dropped by 3.9 percent in 2008 to 24.3 million tons. This capacity will decline by another 5.2 percent in 2009, according to the survey. It is then expected to decline by 0.1 percent in 2010 and rise by 0.2 percent in 2011.

Tissue paper capacity expanded 1.3 percent in 2008 to 8.2 million tons. The increase partly reflects several new machines—five that came online during the second half of 2007 and another in the fall of 2008—the combined tonnage of which was only partially offset by six older machines that permanently closed in 2008 and the residual effect of machine closures in 2007.

One new tissue machine is scheduled to come online this year, and two new machines are slated to begin production in 2010. Total tissue paper capacity is projected to rise 0.3 percent in 2009, 1.1 percent in 2010 and 0.6 percent in 2011.

The complete survey, which includes detailed tables, can be purchased for $1,500 through AF&PA Web site, www.afandpa.org, or by phoning Michelle Gaskins at (202) 463-5162.