New Page Closing WI Paper Mill

The top producer of coated freesheet paper in North America, New Page Corp., announced July 30 it will permanently close its Kimberly, WI-based mill at the end of August. The mill annually produces 500,000 tons of coated freesheet paper and employs about 475 workers.

Dan Walsh, vice president of catalog/publication papers at distributor Bradner Smith & Co., says New Page’s announcement to permanently close the Kimberly, WI-based mill “will take a lot of tonnage out of the market. This is further evidence that New Page is serious about not flooding the already weak paper market with tonnage and further erode pricing.”

To further illustrate the unstable paper market, consider the following recent second-quarter financial results: Cascades reported a $25 million net loss, after net income of $45 million last year; New Page reported a net loss of $21 million after breaking even in the same period of 2007; AbitibiBowater reported a net loss of $251 million after a $248 million net loss in 2007; Verso Paper reported a net loss of $44.7 million; and Tembec reported a net loss of $27 million, an improvement on last year’s net loss of $164 million.

What’s more, Sappi Fine Paper North America announced a price increase of $3 per hundredweight (cwt), effective on all new orders placed on or after Aug. 13, and all existing orders with confirmed delivery dates on or after Sept. 29.

Dave Goldschmidt, vice president of marketing, catalog division for paper brokerage Strategic Paper Group, says several other major mills have announced machine downtime to curtail production in an attempt to maintain pricing levels.

“Despite the five, now potentially six straight quarters of mill announced increases, the paper mills continue to lose money,” he says. “The high energy and raw material costs continued to eat away any potential profits they had hoped to achieve.”

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.