Board Converting News, August 17, 2020

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



Percent Change Avg Week Percent Change

2020 2019

34.392 31.916


7.816 7.979


Industry Total

Year-to Date

June 2020



Percent Change Avg Week Percent Change

2020 2019

196.619 193.934


7.741 7.696


Industry Total

Containerboard Consumption (Thousands of Tons)



Percent Change Year-to-Date Percent Change

2020 2019

2.8208 2.6371


16.1361 15.9772


Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only


Percent Change Weeks of Supply

Percent Change

Jun. May

2.0865 2.3246


3.3 3.8


Shipping Days




2020 2019

22 20

127 126

SOURCE: Fibre Box Association

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August 17, 2020

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