Volume 17, No. 6 June 2023

Participating as industry experts in pulp and paper financing and M & A deals around the world for nearly four decades, we continue to see the same mistakes made over and over. This newsletter is designed to help you avoid costly mistakes we have seen others make. We will be giving you one or two points each month to help improve your performance.

Exclusively sponsored by Norexeco...

15 June 2023

Capex remains strong

By Jim Thompson

Despite soft markets, Capital Expenditure announcements remain strong world wide. There were more announcements in May than any month since we have been keeping records...nearly twenty for May alone.

What does this say about the pulp and paper industry? It looks like the folks in the C-Suite are looking beyond the current economy and seeing growth in the future.

This makes sense. Growing populations need more paper products. The grades of paper manufactured have been winnowed to those that make sense for the foreseeable future.

There are some energy conversions going on, particularly from coal to natural gas.

The are grade extension opportunities as liquid packaging grades replace plastic.

The industry really seems to be thinking strategically.

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Note: Neither I or anyone on the Paperitalo staff own any individual pulp and paper stocks.

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If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com or jim.thompson@ipulpmedia.com. We are here to help.

Sincerely,

Jim Thompson, CEO

Talo Analytic International, Inc.

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