As the market continues to shrink, we have viewed countless mills close temporarily as well as permanently. After ten months of being shut down, the Port Hawkesbury mill saw new life as production was phased in due to three reasons:

• Energy
• Labor
• Taxes

Some may be thinking this discussion is premature, as the Port Hawkesbury mill’s targeted reopening is not until fall. What we mention above actually took place in 2006 when Stora Enso owned and operated the mill.

Fast forward six years, and our customers can witness a very similar scenario. While NewPage took over ownership of the mill several years later and operated the mill until its indefinite closure in August of 2011, the mill is looking for another breath of life under new ownership. Coincidentally, the challenges, which are seemingly being overcome, are quite similar to those of 2006.

While history seems to be repeating itself, the market is not nearly the size it was in 2006. An additional 400,000 annual tons of paper added to the market will certainly make an impact to the supply/demand balance. If the mill does accomplish its targeted restart date in September, pricing pressure will increase on supercalendered mills as we enter 2013 and most likely pressure the coated groundwood market as well.

As paper prices continue to rise and fall and suppliers battle financial troubles, Brown Printing Company is committed to keeping our customers secure. They can be assured that our sales reps will be armed with the most up to date knowledge and solutions in the marketplace.