Pulp & Paper Mills

Pulp & Paper Mills

Brief Excerpt from Industry Overview Chapter:

Companies in this industry primarily manufacture pulp, paper, and paperboard. Major US companies include Clearwater Paper, Verso, WestRock, and units of integrated manufacturers Georgia-Pacific and International Paper; major companies based outside the US include Nine Dragons Paper (China), Nippon Paper (Japan), Smurfit Kappa (Ireland), and Stora Enso (Finland).

COMPETITIVE LANDSCAPE

Demand depends on both consumer and business use of paper products. The profitability of individual companies depends largely on production efficiency. Mills owned by large paper companies have advantages by being vertically integrated; the parent corporation may own timber farms, sawmills, pulp and paper mills, conversion plants, and other end-product manufacturing facilities. Small mills can compete successfully in regional markets, in close proximity to timber sources or customers. The US industry is highly concentrated: the top 50 companies account for about 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

The major products are paper, paperboard, and pulp. Other products include bleached bristols and clay-coated papers, which account for about 20% of the industry's revenue, unbleached kraft linerboard (about 15%), special alpha and dissolving woodpulp (about 10%), and toilet tissue (about 10%).