The new millennium brought with it a worldwide recession that severely affected the financial health of the paper industry. Many paper companies struggled to balance their cost structures in the face of falling paper demand. Some were forced to close whole mill operations while others were “fortunate” in only having to shut down a machine or two. Many paper companies went out of business or were acquired.
Since the paper business is traditionally subjected to the vagaries of a cyclical economy, paper shipments, pricing, and corporate profits tend to fluctuate. Especially during periods of economic slowdowns, maintaining operating margins can be particularly difficult. The paper industry therefore is under constant pressure to reduce costs and improve profits. Additional mill and/or machine closures — at least in North America — are possible as marginally profitable mills are forced to shut down temporarily or permanently.
At Specialty Minerals, we have pledged to help the paper industry reduce costs. In uncoated papers, we have precipitated calcium carbonate (PCC) products that can reduce operating costs via higher filler loading and with reductions in basis weight. In coated papers, our PCC can help mills reduce prime pigment costs as well as lower coat weights, a sheet advantage designed to counter postal rate increases.
In the future, paper mills will continue to invest in new equipment with the goal of cost reduction and improved profitability. Further, they will prioritize wet-end projects based on the ability to deliver immediate chemical savings. To facilitate savings via filler-for-fiber substitution, our new Next Generation filler products have been engineered for optimal performance at competitive costs. Specialty Minerals also offers one of the widest product offerings of precipitated calcium carbonates for coated papers. In addition, we have taken the lead in promoting high performance PCC/GCC (precipitated calcium carbonate/ground calcium carbonate) blends at the expense of kaolin clays, thus facilitating further cost reduction opportunities in coating formulations.
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