Coated Groundwood Marketing Mismanagement- Is it just me, or is the sales management of coated groundwood grades in the current bull market the worst ever? What happened to paper allocations? Lead times are out three months for many coated producers, and over two months for just about everyone. All companies are not equally culpable, of course. I have not heard any complaints about Kruger, or FutureMark for example, but the better managed backlogs are the minority. (By the way, I would be happy to publish any rebuttal to my criticisms – and would do so without identifying the source if that is preferred.) Continue Reading
The Black Liquor travesty continues to mock us, rather than slink away and die from embarrassment – as it should. The Dead Tree Blog has posted an important update, IRS Brings Son of Black Liquor Back From the Dead; Ruling May Be Worth Billions to U.S. Pulp Makers . Continue Reading
President and CEO, E. Thomas Curley, had barely learned the most efficient traffic routes to the office, when he was handed a check for $1.265 million, told not to come back, and, by the way, “don’t forget that you ‘resigned’”. Not a bad four month gig – I doubt that Lady Gaga does that well. Continue Reading
NewPage, in removing three top level executives, is big news these days. I find this situation fascinating. Why the shake-up, and why now? The big question is viability. Would Cerberus release its three top people before declaring bankruptcy? Maybe… I hope to offer possible explanations later this month. In the meantime, let’s look back and review NewPage strategies that made the company what it is today. (The photo is a visual description of what Cerberus hopes to be – Google Cerberus) Continue Reading
The very bad news is that consumption of newsprint in North America will continue to decline. There is some good news also, but we don’t want to exaggerate; it’s just relatively good news – making the best of a difficult situation. Surviving in a declining industry is very difficult, but prospering in a declining industry is barely possible. Nevertheless, that is the goal.
The “good news” is summarized in the following bullet points: Continue Reading
The employers, suppliers, and mill communities of AbitibiBowater are all breathing a sigh of relief. It is finally over. Sacrifices were required, but they are survivors – they made the cut – and now can expect things to settle down for a while. Well, maybe…or maybe not.
The future of newsprint is not promising, of course, and Canadian producers are still in the red. Nevertheless, market conditions are looking much better over the short-term and medium-term. Newsprint capacity and demand are in balance right now. It is also likely that some serious White Birch capacity will be eliminated prior to that company exiting bankruptcy. The newsprint market just might be healthy well into 2011. Continue Reading
Prior to the AbitibiBowater closure of its Gatineau mill, the most recent five newsprint machines to close in North America were all 100% recycled. The most recent closure in Europe was also a recycled machine. The two machines at Gatineau were 40% recycled, according to The Newsprint Fact Book. Continue Reading
The Post Office lost $1.9 billion over the last six months. No salaries were cut. No retirement benefits were cut. No health care benefits were cut. No retiree health care benefits were cut. It was business as usual with none of the hugely expensive employee benefits being cut. See the Postal Service report here. Continue Reading
According to an online media organization, WhatTheyThink, March 2010 commercial printing shipments were $7.39 billion, down -4.4% compared to March of 2009. Adjusting for inflation, shipments were down -6.5%. Continue Reading
Category : Newsprint