Pulp & Paper Mills Industry Profile

Companies in this industry primarily manufacture pulp, paper, and paperboard. Major US companies include Boise, Clearwater Paper, Wausau Paper and units of integrated manufacturers International Paper, Georgia-Pacific, and Weyerhaeuser.

The US pulp, paper, and paperboard mill industry includes about 250 companies with combined annual revenue of about $80 billion and is forecast to experience moderate growth over the next two years. Growth drivers include sustained global demand for tissues and containerboard, along with increased production efficiency.

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 industry is highly concentrated: the top 50 companies account for 90 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Paper accounts for 60 percent of industry revenue, paperboard for 35 percent, and pulp for 5 percent. Other products include newsprint, and nonwood pulp from cotton, straw, rag, flax, de-inked scrap paper and bagasse (the outer stalk of sugar cane), and byproducts such as turpentine and tall oil. Within the paper segment, major products are tissue papers, uncoated sheet papers, and coated printing papers. Paperboard is used mainly to make boxes and ...