[GRRN] New Virgin Newsprint Mill

RecycleWorlds (anderson@msn.fullfeed.com)
Thu, 11 Mar 1999 16:15:25 -0600

According to January 1999 Pulp & Paper magazine, a new newsprint mill
may worsen the price picture for ONP.

Apparently, Southland Newsprint LP is planning to construct a new
newsprint mill in Longview, Texas that will be effectively
a 100% virgin mill, in the 270,000-540,000 tpy range. Although it is said
that it
may utilize 10% recovered paper, in fact, it is understood that this really
means by purchasing recovered paper pulp from Donahue (i.e. it will not add
any critical additional deinking capacity).

Since there is already an overcapacity of newsprint in the country,
adding more capacity -- if the project can get financing -- will almost
drive further down the price of newsprint, and with it (absent revived
minimum content legislation) ONP prices.

For this reason, to build a 100% virgin newsprint mill without any
deinking capacity may be seen as a serious threat to recycling, and
recyclers in the region may want to formulate a response.
Peter Anderson
RecycleWorlds Consulting
4513 Vernon Blvd. Ste. 15
Madison, WI 53705-4964
Phone:(608) 231-1100/Fax: (608) 233-0011