U.S. Linerboard Capacity Increases in 2006 - Packaging-Online

U.S. Linerboard Capacity Increases in 2006


WASHINGTON, D.C.—Totally linerboard capacity rose 0.2 percent in 2006, according to the AF&PA's 47th Annual Survey of Paper, Paperboard, and Pulp Capacity. Capacity increases resulting from productivity improvements, product mix changes within linerboard, and shifts from recycled medium, more than compensated for the removal of three machines.

Sixteen paper mills closed in 2006. These 16 mills represent 30 machines taken out in 2006. Seven more machines will be taken out this year and one in 2008. Total U.S. paper and paperboard capacity declined 1.6 percent in 2006 to 97.7 million tons. The decline marked the sixth consecutive annual contraction in paper and paperboard capacity, and the sharpest decline since 2001. Capacity declined only fractionally in 2004, and by 0.8 percent in 2005.

Linerboard capacity is slated to edge up 0.4 percent in 2007 and then rise a more substantial 1.0 percent in 2008. This reflects the conversion and subsequent ramping up of a machine from uncoated free sheet to linerboard during the fall of 2007.

Corrugating medium capacity declined by 4.6 percent in 2006. This is largely the result of the removal from the survey in early 2006 of a machine that had been idled during mid-2005, which is in the process of being redeployed to another grade. Medium capacity is slated to remain virtually stable, at 10.8 million tons during each of the three projection years, through 2009.