CMPC Celebrates Official Launch of Forest Products Business Unit in Atlanta

June 10, 2025 - With the presence of key clients, CMPC on May 12 celebrated the official launch of CMPC Forest Products in Atlanta, Georgia (USA).

According to the company, the Atlanta office marks a new step in its internationalization strategy and closer relationship with the North American market.

"This step allows us to be closer to our customers in the United States and respond more quickly to their needs, offering first-class service right down to the last mile," said Francisco Ruiz-Tagle, general manager of CMPC.

The event brought together nearly 20 clients from the pulp, boxboard, sack kraft, and wood businesses, who participated in various meeting opportunities organized by the team. The event also featured an opportunity to unveil the newly remodeled offices.

CMPC Forest Products, operating since January 1, 2024, is the result of a joint venture with International Forest Products (IFP), and has a team of 24 people who manage sales and logistics services for CMPC's businesses.

Dan Kraft, President and CEO of IFP, commented, "We are proud to continue building a strong relationship with CMPC, which will allow us to offer comprehensive solutions to clients in the United States."

CMPC is a global company that produces and commercializes forestry products, cellulose, paper, and tissue products from its responsibly managed, certified plantations.

SOURCE: CMPC

AF&PA Details U.S. Paper Production and Capacity Trends

May 19, 2025 - The American Forest & Paper Association (AF&PA) has released the 65th Paper Industry Annual Capacity and Fiber Consumption Survey. The report provides detailed data on U.S. paper industry capacity and production compiled by the AF&PA statistics team.

The industry utilized its assets more effectively with total paper and paperboard operating rate reaching 87.5% in 2024, a nearly four percentage point increase from 2023.

U.S. paper and paperboard production increased 3.2% last year, with increases in all categories, led by strong growth in containerboard. U.S. paper and paperboard capacity declined by 2.0% in 2024, to 78.1 million tons. By comparison, the average annual rate of decline since 2015 was 0.9%.

The industry continues to invest in new machines and machine conversions, particularly in the packaging and tissue sectors. Four machines came online in 2023 producing containerboard, one boxboard machine came online this month, and another will start up later this year. One new tissue machine is planned for startup in the second half. However, more capacity has been removed across all sectors resulting from investments in mill system modernization and streamlining of businesses for efficiency and competitiveness.

U.S. Paper-Based Packaging Capacity

Containerboard capacity declined 0.9% in 2024. Despite three consecutive declines in 2022 through 2024, containerboard capacity continues to account for more than 50% of total U.S. capacity to produce paper and paperboard.

Packaging paper capacity increased 4.6% on the heels of a strong 4.8% growth rate in 2023. For the second year, all the growth came in unbleached packaging papers while bleached packaging papers has now declined for six consecutive years. Meanwhile, boxboard capacity declined 3.3% percent in 2024. One bleached boxboard machine came online this month following conversion from printing-writing and a recycled boxboard machine is scheduled to come online in the fourth quarter of this year as part of a new mill.

U.S. Printing-Writing and Tissue Capacity

Printing-writing capacity fell 6.9% in 2024, the steepest decline since the pandemic-induced drop of 14.9% in 2021. After printing-writing capacity dropped below 10 million tons for the first time in 2023, the level is now below 9 million tons. Printing-Writing accounted for just 12% of total U.S. paper and paperboard capacity in 2024, the same as in 2023.

Tissue capacity declined 1.7% in 2024. In spite of the three recent consecutive year-over-year declines, the tissue share of total U.S. paper and paperboard capacity has grown steadily compared to other grades over time, from 7.2% to 11.3% since the year 2000.

What is Capacity?

Capacity is the tonnage of paper, paperboard or pulp that could be produced with full use of equipment and adequate supplies of raw materials and labor, and assuming full demand.

AF&PA's Capacity Survey details U.S. industry capacity data for 2024 and 2025 for all major grades of paper, paperboard and pulp, as well as fiber consumption. It is based on a comprehensive survey of U.S. pulp and paper mills. It includes production data for 2024.

AF&PA data represent about 89% of U.S. paper and paperboard industry capacity, with estimates completing the data set.

How to Purchase the AF&PA Capacity Survey?

The complete Survey is available for purchase online. Please visit our website afandpa.org/statistics-resources/reports or contact [email protected] or 202-463-4716 for this report and other industry reports.

About AF&PA and the Forest Products Industry

The American Forest & Paper Association (AF&PA) serves to advance public policies that foster economic growth, job creation and global competitiveness for a vital sector that makes the essential paper and packaging products Americans use every day.

The U.S. forest products industry employs more than 925,000 people, largely in rural America, and is among the top 10 manufacturing sector employers in 44 states. The industry accounts for approximately 4.7% of the total U.S. manufacturing GDP, manufacturing more than $435 billion in products annually.

AF&PA member companies are significant producers and users of renewable biomass energy and are committed to making sustainable products for a sustainable future through the industry's decades-long initiative — Better Practices, Better Planet 2030.

SOURCE: AF&PA

Georgia-Pacific to Close Its Cedar Springs Containerboard Mill in Georgia

May 14, 2025 - Employees at the Cedar Springs Containerboard mill in Georgia were told today that Georgia-Pacific plans to permanently close the operation later this year. Most positions will be eliminated by August 1, 2025.

In a written statement, Georgia-Pacific said, “Various factors influenced this difficult decision. Ultimately, we do not believe that the mill can competitively serve our customers in the long term. This decision has nothing to do with the quality of work of Georgia-Pacific’s employees at the Cedar Springs mill.”

Georgia-Pacific did not disclose the annual capacity of the mill.

Approximately 535 jobs will be impacted by this closure.

The company continued, “Production will continue for a limited time as the site works to fulfill customer commitments. Georgia-Pacific’s focus in the coming weeks and months is to continue to safely operate while supporting our employees during the transition. Georgia-Pacific is committed to treating all Cedar Springs employees with dignity and respect and will work with them to provide access to local support agencies and job placement resources, including available opportunities within Georgia-Pacific or other Koch companies.”

Currently, Georgia-Pacific has containerboard mills in Brewton, Alabama; Cedar Springs, Georgia; Palatka, Florida; Monticello, Mississippi; Toledo, Oregon; and Big Island, Virginia.

Based in Atlanta, Georgia-Pacific and its subsidiaries are among the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, cellulose and building products. The company operates more than 150 facilities and employs approximately 30,000 people directly and creates more than 80,000 jobs indirectly.

SOURCE: Georgia-Pacific

Canfor Pulp Reports Results for the First Quarter of 2025

May 8, 2025 - Canfor Pulp Products today reported its first quarter of 2025 results.

Overview

Q1 2025 operating income of $11 million; net income of $6 million, or $0.09 per share.

Market fundamentals saw modest improvement early in the quarter; however, this momentum weakened later in the period with rising global economic and trade uncertainty.

6% increase in pulp production during Q1 2025 (versus Q4 2024) primarily due to improved operating reliability.

Financial Results

The Company reported an operating income of $10.8 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024. These results were largely driven by a modest uplift in the Company's average Northern Bleached Softwood Kraft ("NBSK") pulp unit sales realizations in the current quarter combined with a 6% increase in pulp production compared to the fourth quarter of 2024.

CEO Comments

Commenting on the Company's first quarter results, CPPI's President and Chief Executive Officer, Stephen Mackie, said, "With improved operational performance and some positive momentum in market conditions early in 2025, we are pleased to see another quarter of positive results for our pulp business.

“Despite the increase in results, however, global economic uncertainty influenced pulp market conditions in the latter part of the first quarter and continues to do so early in the second quarter. Going forward, we will work to navigate these external challenges facing our business while focusing on improving safety, reliability and overall operating performance."

First Quarter Highlights

Global softwood pulp market fundamentals experienced some positive improvement during the first quarter of 2025, with modest strength observed early in the quarter, particularly in China, as global pulp producer inventory levels began to stabilize. As the quarter progressed, however, this momentum diminished as global economic and trade uncertainty rose. As a result, US-dollar NBSK list prices to China, the world's largest pulp consumer, started the year at US$770 per tonne and saw a modest increase through the current period, ending March at US$798 per tonne. For the current quarter overall, US-dollar NBSK pulp list prices to China averaged US$793 per tonne, up US$26 per tonne, or 3%, from the prior quarter.

As a result, the Company's average NBSK pulp unit sales realizations experienced a modest increase compared to the previous quarter, principally reflecting this improvement in US-dollar NBSK pulp list prices to China, coupled with a 2 cent, or 3%, weaker Canadian dollar in the current period, offset to a degree, by an unfavourable timing lag in shipments versus orders.

Pulp production was 104,000 tonnes for the first quarter of 2025, up 6,000 tonnes, or 6%, from the fourth quarter of 2024, primarily driven by improved operational reliability and productivity at both of the Company's pulp mills in the current period.

Operating income in the Company's paper segment was $5.4 million, compared to $5.1 million in the previous quarter, largely driven by the benefit of favourable timing of shipments around quarter-end as well as the weaker Canadian dollar in the current period.

Outlook

While global pulp demand and pulp producer inventory levels are currently stable, looking ahead, global softwood pulp markets are anticipated to remain subdued as increasing uncertainty associated with economic concerns and potential trade disruptions weigh on market conditions.

While the Company continues to monitor the trade situation between Canada and the US and is prepared with mitigation plans to mostly offset the impact should tariffs on US shipments be imposed, the Company is also monitoring the broader global trade situation. With its high quality, specialty product offering and market diversification, the Company is positioned to respond to any potential tariffs.

The Company remains focused on optimizing its operating footprint, enhancing operational reliability as well as closely managing manufacturing and fibre costs.

Looking forward, there remains significant uncertainty with regards to the availability of economically viable fibre within BC. As a result, the Company continues to anticipate that escalating log cost pressures and transportation costs in BC will translate into a higher cost fibre supply for its pulp mills (both for sawmill residual chips and whole log chips). The Company will continue to evaluate operating conditions and adjust operating rates at its pulp mills to align with economically viable fibre supply. These factors could also affect the Company's operating plan, liquidity, cash flows and the valuation of long-lived assets.

The relatively muted North American demand for bleached kraft paper experienced at the end of the first quarter is projected to continue through the second quarter of 2025, largely as a result of uncertainty surrounding the trade situation between Canada and the US and the potential for tariffs on US shipments.

No major maintenance outages are planned at the Company's pulp mills or at its paper machine for the second quarter of 2025.

Looking forward, the Company has revised its maintenance schedule for the second half of 2025. A maintenance outage is now scheduled in the third quarter of 2025 at the Company's Intercon Pulp mill and at its Paper machine. This maintenance outage is projected to reduce both NBSK market pulp production and paper production by 2,000 tonnes each. In the fourth quarter of 2025, a maintenance outage is now scheduled at the Company's Northwood Pulp mill which is projected to reduce NBSK market pulp production by 10,000 tonnes.

Canfor Pulp Products Inc. is a leading global supplier of pulp and paper products with operations in the northern interior of British Columbia ("BC"). Canfor Pulp operates two mills in Prince George, BC with a total capacity of 780,000 tonnes of Premium Reinforcing Northern Bleached Softwood Kraft ("NBSK") pulp and 140,000 tonnes of kraft paper.

SOURCE: Canfor Pulp Products Inc.