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Article | May 31, 1996
IP sees growth in paper demand
Last year, U.S. linerboard capacity reached 24.2 million tons, posting a 5.9% gain over 1994 (see chart, below left). About one-fifth of this larger-than-expected increase was attributable to swing machines that switched from kraft paper to linerboard, and from new machinery producing at high rates, according to Thomas E.
Gestrich vp bleached board Inter- national Paper (Mem-phis TN). Gestrich presented capacity and demand forecasts during the company's Direction 97 meeting held last month in Chicago. During '96 and '97 linerboard capacity is expected to average 4.6% growth he said. Regarding U.S. box shipments IP forecast average annual growth between 1997 and 1999 of 3% to 4% with U.S. linerboard exports growing at a 6% to 8% rate. In the bleached liquid packaging segment (below right) IP reported that the U.S. market grew 1.7% last year with growth in the fresh juice and specialty segment more than offsetting a slight decline in the milk segment. This internationally dominated Bleached Liquid Pack-aging segment is expected to fuel 3.5% annual growth worldwide in the next four years. The company also reported that global demand for bleached packaging board set a record last year with international growth leading the way. World demand is expected to grow 2% to 4% annually through the remainder of the decade with plant operating rates averaging over 95%.
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