The American Forest & Paper Association (AF&PA) released the 59th Annual Survey of Paper, Paperboard and Pulp Capacity, reporting U.S. paper and paperboard capacity declined 1.1 percent in 2018. Containerboard capacity increased 1.9 percent in 2018 to reach a record 39.7 million tons. Containerboard accounted for 47.6 percent of U.S. paper and paperboard capacity in 2018, up from 38.3 percent in 2008. Tissue paper capacity rose 1.3 percent in 2018 to 8.8 million tons. Over the 2009-2018 ten-year period, tissue capacity rose 7.0 percent. In 2018, a new tissue paper mill was opened with two machines and a new tissue machine was started at an existing mill. Reflecting digital competition, capacity for newsprint and printing-writing papers continued to decline in 2018. Several machines producing these grades were permanently closed or converted to the production of other grades last year. Click "read more" below for additional information.
Canfor Corporation (TSX:CFP) announced today it will be curtailing operations at all British Columbia sawmills at the end of December. All sawmills, with the exception of WynnWood, will be curtailed for two weeks from December 23 through January 3, with operations resuming on January 6. WynnWood will be curtailed for five days. The curtailments are due to the high cost of fibre and continued weak lumber markets, which are making the operating conditions in BC uneconomic.
“We deeply regret that our employees have been impacted by multiple curtailments in 2019, we know it has been a difficult year for our employees, contractors, their families and the local communities,” said Stephen Mackie, Senior Vice President, Canadian Operations, Canfor. “The curtailments are not a reflection on our hard-working employees or contractors. We appreciate all of their efforts and continued commitment to safety during these difficult times.”
These curtailments will remove almost 58 million board feet of production output and are in addition to all previously announced capacity reductions.