Paper Industry M&A — The Consolidation Craze

O'Brien also feels that consolidation will provide the long-term stability that paper mills need. "It will significantly impact their long-term ability to survive. They'll be better able to deal with the swings in the marketplace."

Capacity to Grow Moderately Through 2004

Paper and paperboard capacity will expand slightly in the years 2002 through 2004—at an average annual rate of 0.4 percent—according to the "42nd Annual Capacity Survey" of the American Forest & Paper Association (AF&PA).