Q3 Paper Outlook — Big Paper Cuts

In May, Sappi Ltd. reported that it would exit the U.S. uncoated paper and converting paper segments, and focus on its core business of coated fine paper. As a result of this decision, Sappi plans to close its 500-employee paper mill in Mobile, AL, which produces the Spectra-Tech line of uncoated papers. With an annual capacity of 300,000 tons, the mill also manufactures Lusterprint, a high gloss paper used for pet food bags and other converting grades. Lusterprint will now be produced at other Sappi facilities.