FINANCIAL ANALYSTS: GP takes off 8% of UFS capacity; will keep UFS market tighter for longer; delays c’board add [RBC]

excerpt from RBC Dominion Securities

Port Hudson UFS/pulp mill closure announced – Georgia-Pacific is closing its paper, wood yard, pulp mill and energy operations at the Port-Hudson mill, while the tissue and paper towel operations will continue to operate. We're estimating that 640K st/y of UFS capacity will come offline, representing ~8% of current NA industry capacity, and may lead to upward pricing pressure in 2019. The company said that sizable CAPEX is required (potentially a recovery boiler or environmental system rebuild) and it could not be justified due to the negative demand trend in UFS. The operations will close down ...

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