Declining Western European demand and the addition of new capacity in Eastern Europe, Asia and Latin America could force the closure of up to 25 machines (1.5 million tonnes of capacity), potentially turning Western Europe into a net importer of uncoated woodfree papers by 2015.
“It’s clear that a lot of uncoated woodfree capacity in Europe will shut, and this study takes the step of identifying the actual machines and mills at risk of closure,” said Sampo Timonen, director of European Graphic Papers at RISI, and author of the study. Sampo adds however, that while “high pulp, recovered paper and energy costs threaten the profitability of non-integrated producers, integrated producers and net sellers of pulp or electricity profit from selling the energy they do not require.”