Changing the North American Pulp and Paper Industry

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2009-04-17

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Abstract

MRMP Holdings, LLC intends to establish non-integrated paper manufacturing and converting operations on the west coast of the United States and market high-quality eucalyptus pulp based products directly to its targeted customer base. MRMP Holdings, LLC will manufacture uncoated freesheet papers, such as offset, premium opaque, reprographic, and certain converting grades, on an efficient, state-of-the-art paper machine capable of producing 535,000 tons per year. The Company’s strategy is to capitalize on changing industry dynamics and market opportunities not exploited by others.

The Company’s business plan reflects the growing recognition among uncoated freesheet manufacturers and their customers that the highest quality and most environmentally sustainable pulp is derived from tropical hardwoods, such as eucalyptus, and that pulp can be produced most efficiently in regions such as South America and Asia, far from the largest markets for uncoated freesheet paper. Paper manufacturers have also recognized that fiber supplies they no longer need to own fiber supplies; manufacturer can likely control adequate supplies of pulpwood through contractual arrangements, thus avoiding the capital investment, costs and potential liabilities associated with timber ownership and harvesting. Management believes that the Company’s strategy of separating paper manufacturing from the pulping process is a logical extension of these current industry trends. The manufacture of pulp should remain near timberlands in regions where production costs are lowest, but the conversion of pulp into paper should occur closer to the marketplace.

The Company’s long-term strategic objectives include: 1) be the market share leader in its selected primary markets; 2) be recognized by its customers as the most trustworthy and dependable supplier of the highest-quality and most environmentally sustainable products; and 3) achieve 25%+ returns for its shareholders.

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Prior, Mark (2009). Changing the North American Pulp and Paper Industry. Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/949.


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