The Key to Understanding the Industry
There are just a few basic items one needs to understand to have a picture of the pulp and paper industry today. Seems like I repeat these all the time, but someone always acts surprised. But just in case you haven't heard them or have forgotten them...
Paper is made from cellulose.
If that cellulose is used for its physical properties, the business is in excellent condition.
If that cellulose is used to convey ideas, the business is declining, destined to be a niche business if it survives.
Examples of the former--packaging, tissue, femcare products, diapers.
Examples of the latter--newsprint, fine paper, printing & writing.
Then, as a corollary--there has not been a greenfield virgin wood pulp mill built in the United States since 1989--32 years ago. They are just impossible to permit (as in environmental permits).
Remember these simple truths and people will think you are a genius.
