Domtar To Convert TN Paper Mill To Produce Recycled Containerboard Fort Mill, South Carolina based Domtar announced on August 8 that it will convert a printing and writing paper mill in Kingsport, Tennessee, to produce recycled pack- aging using OCC and mixed paper. The mill, which has been idled since April due to declining customer de- mand, will be converted to produce recycled linerboard and medium materials The conversion will take 28 to 31 months to complete and is expected to be operational by the first quarter of 2023, at the latest, according to Domtar. “Once in full operation, the mill will produce and mar- ket approximately 600,000 tons of high-quality recycled linerboard and medium, providing the company with a strategic footprint in a growing market,” according to a Domstar spokesperson. The mill will use about 660,000 tons per year of OCC and mixed paper as feedstock. The recycled fiber con- version will cost between $300 million and $350 million. The mill project joins a growing list of facilities converting or being developed to produce containerboard to satis- fy the demand for packaging for e-commerce, which has only increased during the COVID-19 pandemic. Domtar operates 13 pulp and paper mills in North America.
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month June 2020
Year
Actual
Percent Change Avg Week Percent Change
2020 2019
34.392 31.916
7.8
7.816 7.979
-2.0
Industry Total
Year-to Date
June 2020
Year
Actual
Percent Change Avg Week Percent Change
2020 2019
196.619 193.934
1.4
7.741 7.696
0.6
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2020 2019
2.8208 2.6371
7.0
16.1361 15.9772
1.0
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Jun. May
2.0865 2.3246
-10.2
3.3 3.8
-13.2
Shipping Days
Year
Month
Year-to-Date
2020 2019
22 20
127 126
SOURCE: Fibre Box Association
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August 17, 2020
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