Where have all the paper mills gone?
M-real’s announcement last month of further restructuring across its paper mills can have come as no surprise to industry personnel and analysts, but the fact that it means that another 100,000 tonnes of coated mechanical paper capacity will be removed from the sector adds to the growing list of capacity closure and reductions that have been announced by the industry giants. Many have said that this is a sign that producers have finally come to their senses and are reducing capacity in line with demand, closing unprofitable mills and machines or those requiring heavy investment, whilst taking the chance to switch production to other machines across their facilities. Others have reiterated the fact that it’s a sign of the harsh market that the world of manufacturing has to deal with. One only has to look at the UK as a prime example of this. The names of the once mighty mills read like a former who’s who of the UK paper industry. Fort William, Sappi Nash and Transcript, M-real Sittingbo
