Pulp & Paper Mills
Description
Companies in this industry primarily manufacture pulp, paper, and paperboard. Major US companies include Clearwater Paper, Verso, WestRock, and units of integrated manufacturers Georgia-Pacific and International Paper; major companies based outside the US include Nine Dragons Paper (China), Nippon Paper (Japan), Smurfit Kappa (Ireland), and Stora Enso (Finland).
The global production of paper and cardboard totals about 400 million metric tons annually despite the increased usage of various digital platforms, according to Statista.
The US pulp, paper, and paperboard mill industry includes about 370 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $80 billion.
COMPETITIVE LANDSCAPE
Demand depends on both consumer and business use of paper products. The profitability of individual companies depends largely on production efficiency. Mills owned by large paper companies have advantages by being vertically integrated; the parent corporation may own timber farms, sawmills, pulp and paper mills, conversion plants, and other end-product manufacturing facilities. Small mills can compete successfully in regional markets, in close proximity to timber sources or customers. The US industry is highly concentrated: the top 50 companies account for about 95% of revenue.
Imports of pulp and paper mill products account for about 15% of the US market. Canada is the largest source of imports. Exports, chiefly to Canada, Mexico, China, and Japan, account for about 20% of US production.
Canada is also the largest supplier of imported logs, a key raw material for this industry. The US and Canada have ongoing trade issues regarding timber.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major products are paper, paperboard, and pulp. Other products include bleached bristols and clay-coated papers, which account for about 20% of the industry's revenue, unbleached kraft linerboard (about 15%), special alpha and dissolving woodpulp (about 10%), and toilet tissue (about 10%).
Wood pulp is the major intermediate product used to make paper, paperboard, and newsprint. Most mills produce a combination of products, but pulp mills tend to specialize by type of pulp. Other raw materials include chemicals and recycled paper. Softwoods, such as Southern pine, Hemlock, Douglas fir, and Jack pine, are primary wood sources. Mills buy wood in bolts and logs, and in chips, slabs, cores, sawdust, bark, and other forms of mill residue. Chemicals include chlorine, sodium hydroxide, sodium chlorate, aluminum sulfate, and lime. Electricity is a source of both heat and power for mills.
The cost of raw materials varies. Companies protect against fluctuations in availability by entering into purchase agreements. Some larger companies assure supply by owning timberland.
The production process involves preparation of raw materials, the pulping operation, and the wet end and dry end operations of the papermaking machine. Wood is cleansed, cut, and sorted by size. The pulping operation breaks down the wood, separating the cellulose fibers from other impurities. Pulping involves a variety of chemical or mechanical techniques, depending on the type of paper or cellulose product being produced; the kraft process produces general purpose paper.
Wood pulp feeds through a papermaking machine that handles wet and dry processes, matting the cellulose fibers into sheets. The wet end operation removes water by spraying the pulp onto a long, wide screen called a wire. The pulp fibers bond into a mat, which felt-covered press rollers then squeeze to remove more water. At the end of the wet process, the pulp mat still contains about 60% water. In the dry end operation, the pulp mat passes through steam-heated metal cylinders up to 30 feet wide, which seal the pulp fibers close together, transforming the fiber mats into large sheets of paper. The calender part of the papermaking machine consists of heavy cast iron rollers that compress the paper to a consistent thickness. Paper may retain a matte finish, or papermakers may add coatings, such as fine clay, for a glossy finish. Finished paper is rolled into large spools.
The global production of paper and cardboard totals about 400 million metric tons annually despite the increased usage of various digital platforms, according to Statista.
The US pulp, paper, and paperboard mill industry includes about 370 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $80 billion.
COMPETITIVE LANDSCAPE
Demand depends on both consumer and business use of paper products. The profitability of individual companies depends largely on production efficiency. Mills owned by large paper companies have advantages by being vertically integrated; the parent corporation may own timber farms, sawmills, pulp and paper mills, conversion plants, and other end-product manufacturing facilities. Small mills can compete successfully in regional markets, in close proximity to timber sources or customers. The US industry is highly concentrated: the top 50 companies account for about 95% of revenue.
Imports of pulp and paper mill products account for about 15% of the US market. Canada is the largest source of imports. Exports, chiefly to Canada, Mexico, China, and Japan, account for about 20% of US production.
Canada is also the largest supplier of imported logs, a key raw material for this industry. The US and Canada have ongoing trade issues regarding timber.
PRODUCTS, OPERATIONS & TECHNOLOGY
The major products are paper, paperboard, and pulp. Other products include bleached bristols and clay-coated papers, which account for about 20% of the industry's revenue, unbleached kraft linerboard (about 15%), special alpha and dissolving woodpulp (about 10%), and toilet tissue (about 10%).
Wood pulp is the major intermediate product used to make paper, paperboard, and newsprint. Most mills produce a combination of products, but pulp mills tend to specialize by type of pulp. Other raw materials include chemicals and recycled paper. Softwoods, such as Southern pine, Hemlock, Douglas fir, and Jack pine, are primary wood sources. Mills buy wood in bolts and logs, and in chips, slabs, cores, sawdust, bark, and other forms of mill residue. Chemicals include chlorine, sodium hydroxide, sodium chlorate, aluminum sulfate, and lime. Electricity is a source of both heat and power for mills.
The cost of raw materials varies. Companies protect against fluctuations in availability by entering into purchase agreements. Some larger companies assure supply by owning timberland.
The production process involves preparation of raw materials, the pulping operation, and the wet end and dry end operations of the papermaking machine. Wood is cleansed, cut, and sorted by size. The pulping operation breaks down the wood, separating the cellulose fibers from other impurities. Pulping involves a variety of chemical or mechanical techniques, depending on the type of paper or cellulose product being produced; the kraft process produces general purpose paper.
Wood pulp feeds through a papermaking machine that handles wet and dry processes, matting the cellulose fibers into sheets. The wet end operation removes water by spraying the pulp onto a long, wide screen called a wire. The pulp fibers bond into a mat, which felt-covered press rollers then squeeze to remove more water. At the end of the wet process, the pulp mat still contains about 60% water. In the dry end operation, the pulp mat passes through steam-heated metal cylinders up to 30 feet wide, which seal the pulp fibers close together, transforming the fiber mats into large sheets of paper. The calender part of the papermaking machine consists of heavy cast iron rollers that compress the paper to a consistent thickness. Paper may retain a matte finish, or papermakers may add coatings, such as fine clay, for a glossy finish. Finished paper is rolled into large spools.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.