Paper Chemicals

Because paper is ubiquitous, it generally is taken for granted. However, paper and paperboard comprise a massive, multi-billion-dollar industry employing vast amounts of natural resources, equipment, energy, and chemicals. The U.S. paper industry, with a positive trade balance, has long enjoyed a competitive advantage over compering industries in Scandinavia, other countries in Europe, and Japan. However, the outlook for profitability in the industry has been bleak since 1991, when earnings plunged almost 25% below 1990's already depressed earnings. In 1992, profit margins for pulp were near zero, and U.S. shipments of paper and allied products grew only 1.5% to more than $126 billion, according to the Department of Commerce. The market continues to be constrained by declining prices, overcapacity, and generally poor world economies. Modest volume growth is expected to continue, with paper shipments growing about 4% in 1993 and continuing to grow about 2.5% per year through 1997. Papermaking is being affected by ...