Mid Quarter Update-Paper and Trends

If you have visited the Crane Paper website recently you may have encountered an interesting web error. Rather than the ubiquitous 404 error of yesterday's Internet or the animated GIF of the stick figure in a hardhat digging a hole to nowhere, you would have encountered this message:

Ordinarily no big deal, until one discovers Crane operations laid off 76 employees and effectively closed that unit of business as of 2/16. The likely reason: Fedrigoni completing the acquisition of Mohawk Paper and its assets. Formally announced on the 22nd, we await further changes as Fedrigoni assumes control of the Cohoes, NY mill. Having had great success myself with Mohawk's papermakers in the past, it will be interesting to see what the future holds for a mill long recognized for its innovative spirit.

Couple this with Domtar's announcement of the permanent idling of the Ashdown, AR mill. Another 216,000 tons of capacity will be heading out of the uncoated market although it appears they will keep pulp operations going there for the time being. With an additional 40,000 tons getting sidelined in April as the Windsor mill rebuilds the #7 machine, the possibility exists that uncoated tons could get tight should demand creep up. Domtar expects to cover the shortfall with remaining Ashdown capacity and inventory from the network in the meantime.