Paper Industry M&A — The Consolidation Craze

Coated groundwood capacity in 2001 is estimated to be more than 2 percent larger than anticipated in last year's survey. Beyond 2001, total capacity is projected to grow by more than 12 percent during the 2002-2004 period, or by 4 percent per annum on average.

Coated free sheet capacity declined fractionally in 2001 from 2000. Anticipated growth in the 2002-2004 period is 0.4 percent per year. This compares with a 5 percent annual average capacity gain that prevailed during the 10-year period ending in 1997, the last high-growth year for coated free sheet capacity.