Problems Faced by the Paper Mill Industry

One of the things that have been useful to humans in different activities and purposes is paper. It has been useful in schools, offices, publications, and others, but have you ever wondered how it was made and what it is made of? Paper is made from wood pulp, plant fiber, and other raw materials and there are factories which process these to make paper, they are called paper mills. However, paper mills around the world are now facing the fear being forced to shut down. There are several reasons behind this and we are going to find out more about it.

The Economic Times will tell us about some of the paper mills in Gujarat and Maharashtra who are experiencing some problems.


Paper mills in Gujarat, Maha in dire straits: Industry body

MUMBAI: Nearly 35 per cent increase in raw material prices in the last two months may force more than 125 craft paper mills in Gujarat and Maharashtra to shut the shop, an industry body today said.

“More than 125 craft paper mills of Gujarat and Maharashtra are on the verge of closure….India and China are dependent on import of waste paper from foreign countries for recycling purpose. However, due to the increase in the consumption of waste paper in foreign countries, the raw materials prices have gone up by 35 per cent. As a result, paper mills have been losing Rs 6 per kg. If this deficit is not met, the paper mills of Gujarat and Maharashtra, having annual turnover of Rs 12,000 crore, may be forced to close down,” Gujarat Paper Mills Association President Sunil Agarwal said in a statement here.

China mills have increased the prices of ready goods by Rs 7,000 per tonne in the last 2-3 months. China can afford to pay $ 50 to 60 more for the import of waste paper from West America, Europe and Middle East, he said. Read more here.

The increased consumption of imported raw materials have caused price hike and it is alarming to think that it could actually shut down a big number of craft paper mills in Gujarat and Maharashtra.

Paper Trade show at Tissue World Miami

Come March 21-23, 2018, there will be a tissue industry trade show and conference in Miami, USA, where over 200 exhibiting companies and 2500 visitors are expected to attend. The Tissue World Miami expo is expected to attract numerous industry expert, and if you are concerned about the future of the industry you should attend.

Now, let us also see one big paper mill business that had faced some problems which caused them to close. Doug Harlow will tell us more about this through his article below.

New hope for old mill at Madison Paper Industries

MADISON — There is a different sort of hum at the former Madison paper mill these days.

Gone is the hot, loud blast of a giant paper machine rolling out 195,000 tons of paper annually after the mill closed in May 2016 and put about 215 people out of work.

The hum amid the quiet industrial corridors of the mill and its offices now is all business — phone calls and walking tours with prospective buyers taking notes on the mill’s equipment and value.

Everything is for sale, said Jerome Epstein, 81, whose father, Perry Epstein, founded Perry Videx, a used equipment and machinery company in 1932. Perry Videx is one of the partners of Somerset Acquisition LLC, the group of new owners who purchased the mill in December. The mill property was sold to a “joint venture” of New Mill Capital Holdings, of New York; Perry Videx, of Hainesport, New Jersey; and Infinity Asset Solutions, of Toronto. The mill was sold to the group in December 2016. Read more here.

The Madison Paper Industries’ closure has affected a lot including a big number of workers who are going to be unemployed. Some equipments and mills are still perfectly working and are now being sold by the owner. According to The Economic Times, the paper industry already needs to reformulate itself. Let us find out why through their article below.

Paper industry needs to reformulate itself: Nirmala Sitharaman 

CHENNAI: Union Minister Nirmala Sitharaman today asked paper manufacturers to “reformulate” business model and make use use of degraded land to plant trees that can be availed as raw material by the industry. 
“It is a very critical industry. You have contribution to make (to the country). You (paper manufacturers) are at a critical juncture and have to reformulate yourself,” the commerce and industry minister said.
She was speaking at the inauguration of the 56th AGM of Federation of Paper Traders’ Association here. 

“Look at the market which wants paper in certain segments. You are looking at a market which has been using (paper) for a long time. If there is a mismatch, you should be able to bridge that,” she said. 
Advising the industry to work with the central and state governments for the use of degraded land to plant trees which can become raw material, the minister said, “The (paper) industry can plan and tell the government that this is where they want to make the (land) for productive use.”
Read more here.

Nirmala Sitharaman has suggested a solution to one of the problems faced by paper mill industries today which is scarcity of raw materials. According to her, degraded lands should be used as an area where they could plant trees for a bigger source of raw materials. It is a good suggestion because we need more trees and we wouldn’t want to consume all of our trees just for paper. There should be a specific area where industries could get their raw materials. Not all trees are meant for that purpose. Business is business but we should also think of our nature.