All grades of paper are in fairly good shape. What does this mean for capital projects?
By Jim Thompson
I am going to give you the consultant's answer...it depends.
Some companies will choose to run flat out. They will not affect your current capital projects.
Others may see this as a time to jump in and increase capacity or quality with additional assets. They may affect your capital projects, especially if they are relatively close by or seeking certain equipment that is in high demand. They can affect your prices and your schedule.
The tissue industry, for instance, seems to be in one of its periodic "let's all add capacity simutaneously modes." This will raise the price of capital projects and kill the price of tissue when they all start up.
Know your grade and know what is going on, not only with your company, but your competitors (find out in legal and moral ways, please).
By the way, I have my theory on why the tissue business is going crazy and why this time, it will tank hard. This applies to the US only. Call me if you want to know--404-822-3412.
What is your opinion? Drop me a line at jim.thompson@ipulpmedia.com. I would like to hear from you.
And further by the way, I come to mills and talk to various departments about many subjects. To arrange my custom visit to your mill, just email me at jim.thompson@ipulpmedia.com or call me at 678-206-6010.
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