Volume 17, No. 7 July 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.

15 July 2023

Economic downtime mixed with some interesting speculation on future activity

By Jim Thompson

The containerboard industry is presenting a mixed picture when it comes to downtime.

The differentiator seems to be penetration into the retail market.

It is fairly simple...companies deep into servicing the retail market are fairing better, meaning experiencing less downtime, than those more focused on serving the independent box business.

Expectation? Focus will move to expanding downstream into the box business.

Implication? Box plant prices will rise even further and existing box plants will be rebuilt to increase capacity. Box plant renovations to improve productivity through upgrades to automation have already been underway for several years. Expect this to continue or accelerate.

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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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