RISI announces the new multi-client study addressing concerns of declining uncoated woodfree market

BOSTON, MA, 17 June 2009 - RISI, the leading information provider for the global forest products industry, today announced the release of a new multi-client study focusing on the uncoated woodfree market and mills at risk of closure in North America and Europe.

"The market for uncoated freesheet in North America has been in decline since 1999, falling 5% and 8% for the past two years, and the drop is certain to accelerate in 2009. Although Europe eluded this downtrend until 2008, we expect the demand drop in western Europe to offset the gains in central and eastern Europe, resulting in a decline in total demand for uncoated freesheet in Europe as a whole over the next five years," noted Project Team Leader, John Maine, VP - Pulp and Paper at RISI, Inc and industry expert. He adds, "opportunities to offset these declines through exports will be sparse as South American and Asian producers expand their uncoated freesheet capacity to become self-sufficient and even enter the export market."

This study covers 45 North American uncoated freesheet mills and 72 European uncoated freesheet mills. The likelihood of closure for these mills is quantified and ranked by rating six major criteria affecting mill closure, and each factor is given a weight proportionate to the significance of its effect on mill viability. These factors include the mill's relative cost position, market prospects for the grades produced at the mill and mill flexibility to produce other grades, future regional wood supply, corporate significance of the mill, average uncoated freesheet machine size and average uncoated freesheet machine age. In addition, the methodology pits small mills producing primarily specialty products against each other rather than trying to compare their cost structures to those of large, commodity mills. Risk ratings are assigned not only to mills, but also to individual paper machines within each mill.

This timely and valuable study concludes that more uncoated freesheet capacity will have to be closed in the coming years in North America and western Europe, as these regions will face major drops in demand, and transportation costs and logistics will prevent existing capacity from exporting to growing regions. This study focuses on pinpointing the most likely candidates for closure in North America and Europe.

For specific information on RISI's market pulp cost benchmarking data, visit ww.risiinfo.com/pulpw. A complete listing of all RISI cost benchmarking products and methodology can be found at www.risiinfo.com/benchmarking, or by contacting David Rosenberg at 770.373.3028 (in North America) or Tea Tuuli at +32.2.536.0743 (outside North America).

About RISI

RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, tissue, timber, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston (Bedford), Massachusetts, RISI operates offices in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland, Oregon; Charlottesville, Virginia; Sao Paulo, Brazil; Shanghai, China; and Singapore. For more information, visit www.risiinfo.com.

Contact:
Deniece Griffin
Product Marketing Manager
RISI
900 Circle 75 Parkway, Suite 1150
Atlanta, GA 30339
Tel: 770.373-3019
Email: dgriffin@risiinfo.com