Global containerboard capacity growth changing supply base, trade flows

ATLANTA, April 14, 2003 - The large capacity increases seen over the past several years in Europe and China have had a significant impact on world trade flows. The U.S. has especially been hurt with exports of kraft linerboard to Europe dropping from a high of 1.5 million metric tons in 1997 to 0.5 million metric tons in 2002. U.S. exports to Asia have also dropped from a high of 1.3 million metric tons in 1997 to 0.5 million metric ton in 2002.

Just last year, 13 new machines started up in China, adding 2.1 million metric tons of capacity. In Europe, Papierfabrik Palm brought on its new 600,000-metric-ton machine in Worth, Germany (billed as the world's largest containerboard machine). Further increases in Asia are expected over the next two years -- with 10 projects adding 900,000 metric tons of capacity in 2003 and 1.4 million metric tons in 2004. There will be a brief lull in Europe, but several new machines have been announced for 2004 and 2005.

Increased Asian, European, Latin American, and Oceania capacity is one of several topics to be discussed in two new competitive manufacturing costs benchmarking studies from Paperloop Benchmarking Services (formerly Jacobs Consultancy's Competitive Benchmarking group). Covering international containerboard producers, the new 2003 International Kraft Linerboard & Testliner and the new 2003 International Semi-chemical & Waste-Based Fluting/Medium studies will examine manufacturing costs, emerging trends, and recent consolidation and merger and acquisition activity. Both studies are under development with a planned publishing date of mid 2003.

"These new containerboard studies will measure how each international mill is situated on a global cost competitive basis," said Mike Jones, Product Manager, Paperloop Benchmarking Services. "With the recent and additional capacity expansions in China, one of our goals is to determine how Chinese mills compare with North American and the new European facilities."

The 2003 International Kraft Linerboard & Testliner study will cover producers of white top liner, kraft linerboard, and testliner. The 2003 International Semi-chemical & Waste-Based Fluting/Medium study will cover producers of semi-chemical fluting/medium and waste-based fluting/medium.

For more information on these or other Paperloop Benchmarking studies, or on the Analytical Cornerstone? modeling program and database, visit www.paperloop.com/benchmarking, call 770-373-3020, or e-mail Dan Temple at dtemple@paperloop.com or Mike Jones at 770-373-3021, or e-mail mjones@paperloop.com.

About Paperloop Paperloop's mission is to provide the most valued information for and about the paper, pulp, forest, converting and allied industries through the best channels for information exchange. This is achieved through leading industry publications such as the Pulp & Paper and PPI family of magazines and newsletters, RISI, experts in paper/forest products analysis and forecasts, Paperloop's cost benchmarking team, and the foremost website for the paper industry, www.paperloop.com.

Headquartered in San Francisco with offices throughout North America and in Europe, Paperloop was founded in February 2000 and leverages deep, relevant experience from well over 100 well-established, leading print and online industry publications as well as conferences and trade shows.