Paper Outlook — Cutting the Bottom Line

Roughly a year after acquiring the Strathmore product line, Mohawk Fine Papers, Cohoes, NY, announced a formal relaunch of the brand. The company reports having done extensive market research that led it to create a portfolio of premium papers for a new generation of users.

Europe’s paper-making industry has started down the rightsizing path established in North America. The profit restoration program announced by UPM-Kymmene gives an indication of the scope of this effort. Through the closures, it reportedly intends to reduce 17 percent of its coated magazine paper capacity and 12 percent of its coated fine paper capacity in the region. According to Jussi Pesonen, president and CEO, this scaling back is necessary because “cost of production inputs have dramatically increased, and Asian and South American competition has entered the market.”