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#1
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questions about paper companies
I am trying to figure out how trees get to paper mills. My
understanding is that they are harvested by loggers, who put them on a skider or forwarder, and then put them on logging trucks, and then they get taken to the mill. Is this correct? If so, are all these people employed by the paper company, or are they indepant contractors? are paper companies vertically intergrated? also another question: I've read that paper use in america has sky rocketed , that it has grown by 10 or 20% since 1998 ( not exactly sure about that figure). yet over the summer I worked near berlin, NH and the paper mill was shut down, and many paper companies where selling off their land in Northern Maine. If paper use is skyrocketing, and demand is increasing, why would they be closing factories and selling off land? Are they moving their production to other parts of the country or to other countries? any help would be great.thanks. |
#2
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questions about paper companies
f paper use is skyrocketing, and demand is
increasing, why would they be closing factories and selling off land? Cost and the price they can get for their product! Therefore it is gotten elsewhere! |
#3
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questions about paper companies
I am sure that others will jump in, but here in Texas:
"Ed" wrote in message ... I am trying to figure out how trees get to paper mills. My understanding is that they are harvested by loggers, who put them on a skider or forwarder, and then put them on logging trucks, and then they get taken to the mill. Is this correct? Generally true, varies some what from company to company, region to region. A lot of the fiber used in paper industry is from chips generated from other saw mills. In the south we have a class of tree called "chip n saw". Basically small stems that are run through a chipper head to build a cant and then through a saw for finished product. Modern mills waste very little fiber. If so, are all thesepeople employed by the paper company, or are they indepant contractors? are paper companies vertically intergrated? Both, in Texas a lot of independents. Some companies are vertically integrated. also another question: I've read that paper use in america has sky rocketed , that it has grown by 10 or 20% since 1998 ( not exactly sure about that figure). yet over the summer I worked near berlin, NH and the paper mill was shut down, and many paper companies where selling off their land in Northern Maine. If paper use is skyrocketing, and demand is increasing, why would they be closing factories and selling off land? Are they moving their production to other parts of the country or to other countries? One reason is it is currently cheaper to buy paper from Japan, that was made from chips from American companies, than it is to buy American paper. In other words, lots of imports. Companies are selling and trading land (Champion, I-P, Plumb Creek, and others come to mind) to consolidate their holdings and to make there position stronger. Not real sure if use is skyrocketing, but reorganization seems to be big, particularly for west coast companies moving back to the south. any help would be great.thanks. |
#4
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questions about paper companies
My
understanding is that they are harvested by loggers, who put them on a skider or forwarder, and then put them on logging trucks, and then they get taken to the mill. Is this correct? If so, are all these people employed by the paper company, or are they indepant contractors? Here in Upper Michigan most loggers are independent contractors. They buy stumpage and sell wood to the paper mills. The mill gives loggers quarterly quotas that they are allowed to sell. These can vary widely from quarter to quarter depending on how much wood the mill needs or has on hand. Loggers try to have a steady amount of timber lined up and ready to cut at all times of year. This timber comes from private or public land through timber sales. The mills call this open market wood, and demand fluctuates. Logging is a very difficult way to make money. Loggers cutting wood on the land owned by the paper companies here are still independent contractors, but are more assured of the market for the wood since the mill owns the supply and the market. If paper use is skyrocketing, and demand is increasing, why would they be closing factories and selling off land? Are they moving their production to other parts of the country or to other countries? Some paper mills are old and obsolete so can't compete anymore. Building a new mill is very expensive and there are a lot of restrictions due to pollution laws. It is a global market and labor costs are higher in this country than in most others. It is difficult to say if land use restrictions play a part yet but that will certainly be true in the future. |
#5
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questions about paper companies
I am sure that others will jump in, but here in Texas: "Ed" wrote in message m... I am trying to figure out how trees get to paper mills. My understanding is that they are harvested by loggers, who put them on a skider or forwarder, and then put them on logging trucks, and then they get taken to the mill. Is this correct? Generally true, varies some what from company to company, region to region. A lot of the fiber used in paper industry is from chips generated from other saw mills. In the south we have a class of tree called "chip n saw". Basically small stems that are run through a chipper head to build a cant and then through a saw for finished product. Modern mills waste very little fiber. If so, are all thesepeople employed by the paper company, or are they indepant contractors? are paper companies vertically intergrated? Both, in Texas a lot of independents. Some companies are vertically integrated. also another question: I've read that paper use in america has sky rocketed , that it has grown by 10 or 20% since 1998 ( not exactly sure about that figure). yet over the summer I worked near berlin, NH and the paper mill was shut down, and many paper companies where selling off their land in Northern Maine. If paper use is skyrocketing, and demand is increasing, why would they be closing factories and selling off land? Are they moving their production to other parts of the country or to other countries? One reason is it is currently cheaper to buy paper from Japan, that was made from chips from American companies, than it is to buy American paper. In other words, lots of imports. Companies are selling and trading land (Champion, I-P, Plumb Creek, and others come to mind) to consolidate their holdings and to make there position stronger. Not real sure if use is skyrocketing, but reorganization seems to be big, particularly for west coast companies moving back to the south. = AKA = Mazimize shot term profits! |
#7
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questions about paper companies
That is exactly why there will be more and more US companies heading out that
way and down to South America in the next few decades if the "constraints" you listed below do not change soon! -Geoff Larry Caldwell wrote: In article , writes: I am trying to figure out how trees get to paper mills. My understanding is that they are harvested by loggers, who put them on a skider or forwarder, and then put them on logging trucks, and then they get taken to the mill. Is this correct? If so, are all these people employed by the paper company, or are they indepant contractors? are paper companies vertically intergrated? It varies. The automated logging operations are usually corporate projects because the big machines cost $1.5 million or so. If a small operator gets shut down, equipment costs would eat him alive. Mills also contract with logging companies to cut sales. also another question: I've read that paper use in america has sky rocketed , that it has grown by 10 or 20% since 1998 ( not exactly sure about that figure). yet over the summer I worked near berlin, NH and the paper mill was shut down, and many paper companies where selling off their land in Northern Maine. If paper use is skyrocketing, and demand is increasing, why would they be closing factories and selling off land? Are they moving their production to other parts of the country or to other countries? The biggest pulp mill in the world is in Indonesia. It cost over a $1 billion to build, and is capable of digesting all of the trees in SE Asia over the next 30 or 40 years. They can log Thailand, Cambodia, Viet Nam, Burma and Indonesia, and just load the logs on barges. There are few environmental restrictions, labor is cheap, and there are no protective tariffs. US companies can't compete. any help would be great.thanks. -- http://home.teleport.com/~larryc |
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