The American Forest & Paper Association (AF&PA) released its 49th Annual Survey of Paper, Paperboard, and Pulp Capacity on March 23 which reported that US paper and paperboard capacity edged down 0.8% in 2008 to 96.3 million tons, slightly below the 1.0% annual rate of contraction recorded from 2001 through 2007. Cumulatively, paper and paperboard capacity has contracted 7.3% since its 2000 peak level.

The Survey also reported that 18 US mills were permanently closed in 2008, shutting down 27 paper and paperboard machines; an additional 14 machines were permanently shut down at other mills. Several mills and machines have been indefinitely idled in response to weak market conditions, but have not been removed from the survey base because they may be restarted at some future date. In 2007, 17 mills and 38 machines were permanently closed.

Total paper and paperboard capacity is projected to decline 1.8% in 2009 and then expand by 0.3% in both 2010 and 2011.

Chemical paper grade market pulp capacity rose 3.8% in 2007 and an additional 2.9% in 2008 to almost 10.0 million short tons. It is projected to decline 4.1% this year, reflecting the closure of a mill in late 2008, and increase 0.5% in 2010 and hold stable in 2011.

The survey reports US industry capacity data for the years 2008 through 2011 for all grades of paper, paperboard, and pulp, based on a comprehensive survey of all pulp and paper mills in the US. Survey respondents represent over 90% of the US industry capacity. The complete survey with detailed tables can be purchased for $1,500 through AF&PA's website.

www.afandpa.org.

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