More Problems for Paper Industry

One mill takes downtime, while another paper company shuts a machine permanently.

Weyerhaeuser Closing Paper Machine

Weyerhaeuser Company announced that it will close one of two fine-paper machines at its plant in Rothschild, Wis., effective this fall

The 32,000-tons-per-year machine, installed at Weyerhaeuser's Rothschild operation in 1922, was selected for closure because its age and small size are disadvantages in the competitive paper market. The decision reflects the company's goal to become a more efficient and globally competitive organization. One method for achieving this is to balance manufacturing capacity and product mix with customer needs.

Remaining in operation is the 130,000-tons-per-year "R-5" machine. The Rothschild operation produces premium papers used in printing and business applications.

Bowater Taking Downtime

Bowater Inc. announced that it will curtail newsprint and market pulp production at its Thunder Bay mill due to temporary wood fiber shortages in northwest Ontario. Production will cease on June 28th for about 9 days. The shutdown will eliminate 17,000 metric tons of newsprint and 21,000 metric tons of market pulp production. These curtailments and the additional cost of wood fiber will reduce the company's pretax operating results by approximately $10 million.

The combination of depressed lumber prices, countervailing and anti-dumping duties imposed by the U.S. government and a stronger Canadian dollar has caused production curtailments at several sawmills, thereby creating a shortage of wood chips for the Thunder Bay mill. The company is taking actions to mitigate the disruption at its Thunder Bay mill and expects normal wood fiber flows to resume after this curtailment.