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May 9, 2008Methane from cellulose in sewage
Analysis of: The Biofuels Backlash | online.wsj.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
There is a huge amount of cellulose in municipal sewage and represents enormous potential for producing an energy source from a current discarded material. What would it take to make this commercially feasible? If a process could be proven effective, every municipality in the US could incorporate...
April 16, 2008Meadwestvaco continues on Forest Exit Strategy
Analysis of: MeadWestvaco Sells Kraft Paper Mill | www.wciv.com
Author: Brad Franchi, President, Forest Strategies, LLC.
The sale of the MWV mill at North Charleston. SC, will have ramifications for both parties. MWV will shed the pulp and paper mill, but also a lumber mill, and 4 chip mills, which were part of the integrated procurement strategy for this mill. Up until the merger with Mead, this facility...
April 11, 2008China + India = A Tight Global Pulp Market
Analysis of: Pulp Imports To China Surged In 2007 | www.paperage.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
China's growing middle class has developed a strong appetite for both Uncoated FreeSheet (A4 Copybond, Offset Printing paper, envelope, tablet, thermal imaging papers etc) that has exceeded the PRC's expectations. How much more will it grow? The Government has already said by 2010 their...
March 26, 2008Russia's New Pulp Wood Tax Will Seriously Hurt Finland & China
Analysis of: Russian Pulp Hurts Stora, Rewards International Paper | www.bloomberg.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
Russia has now realized the value its Spruce, Pine and Larch trees have and has imposed a 20% tax on any logs greater than 25 cm (10"). It is these larger logs that are so valuable to processing into Newsprint and also for Kraft cooking to produce the highly regarded NBSK market pulp. Did...
March 25, 2008Has IP bitten off more than it can chew?
Analysis of: David Peltier: International Paper takes a risk with purchase | www.app.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
At a time when contraction seems to be the rule (Smurfit Stone having shut down 20 boxplants over the past few years), does IP really see the value in growing their container division by an additional 72 plants? IP's management believes it can cut expenses within 3 years by $400 million including $175...
March 11, 2008The Chinese are buying North American pulp mills: is this good or bad?
Analysis of: Pope & Talbot seeks loan extension | www.dhonline.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
The major implication is that major North American assets are coming under the complete control of Asian (mostly Chinese) companies and there is no secret that 100% of these mills' production will be going straight back to China. Current global customers of these mills are already scrambling...
March 7, 2008Why do environmentalists hate market pulp mills?
Analysis of: Activists invade Stora-Enso plantation in Brazil | www.paperage.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
Demand for papermaking pulps over the next 5 years is projected to increase by 5%/year which translates to almost 3 million mt/year. Where will all this pulp come from? This demand translates to 3 new world-class market pulp mills being built each year. Ideally market pulp should...
March 6, 2008How will AbitibiBowater know when they've consolidated enough?
Analysis of: AbitibiBowater Reports 4th Quarter Loss | www.paperage.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
Standard grade newsprint annual tonnage has been declining since 2000 as circulation goes down, advertizing pages drop and classified ads decrease. Could anyone have predicted that the Internet would have such a profound effect on newspaper circulation? Supposedly no one...
February 12, 2008Can China alone keep the pulp market tight? What about India?
Analysis of: Report says China's Paper Industry Growing Fast | www.paperage.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
With a worldwide recession looming, the market pulp industry continues to be operating at peak capacity with quarterly price increases becoming the norm. China has been the engine driving the world's business but can it continue on and on? Will China's domestic demand ever...
February 11, 2008Is Newsprint Consolidation The Key To Profits?
Analysis of: White Birch Paper to Buy SP Newsprint Company | www.paperage.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
Abitibi-Bowaters has recently shut down four newsprint mills: one in New Brunswick, two in Ontario and one in British Columbia. Catalyst has shut down one machine as have several other major producers. Will this be enough to bring supply in balance with demand? 85% of newsprint production...
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