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Dave HillmanJune 13, 2008
An Invitation Pulp Producers Couldn't Refuse
Analysis of: Stora Enso to start detailed study into Russian paper, pulp mill | www.forbes.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
Raising the duy of all logs to 80 euros/cubic meter will put half the mills in Sweden and Finland out of business it's been reported. Already these mills are operating with the world's highest wood costs - some say as high as US$256/mt or almost six times as high as Ara Cruz's world costs for plantation...
Dave HillmanJune 6, 2008
Weyerhaeuser: dancing as fast as they can!
Analysis of: Weyerhaeuser delays REIT, disappointing investors | www.risiinfo.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
The US Government has fashioned the Tax Laws to make it advantageous for large land owners like Weyerhaeuser to convert to a REIT.  This would be similar to what several Canadians (i.e. Canfor and SFK) have already done. Weyerhaeuser is one (if not the) largest landowner in the Pacific Northwest.  ...
Dave HillmanMay 20, 2008
Does P&T's closure assure another $30/admt price increase in NBSK?
Analysis of: Pope & Talbot Mills To Be Idled For Now | www.reuters.com
Author: Dave Hillman, Independent Consultant, Dave Hillman
The three mills - Harmac, MacKenzie (BC) and Halsey (OR) were producing 1 million mt/year most for export to the Far East.  How will all the papermills who had been depending on this high strength softwood be able to cope?   Already the market is snug with supply and demand in balance. ...
Dave HillmanMay 9, 2008
Methane 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...
Dave HillmanApril 11, 2008
China + 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...
Dave HillmanMarch 26, 2008
Russia'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...
Dave HillmanMarch 25, 2008
Has 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...
Dave HillmanMarch 11, 2008
The 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...
Dave HillmanMarch 7, 2008
Why 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...
Dave HillmanMarch 6, 2008
How 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...

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