Companies plan investments in US recycled paper mills

The past week brought several significant recycled paper capacity announcements, indicating future domestic outlets for mixed paper and OCC.

• Shipping pulp from Kentucky to China: A Chinese company that purchased a U.S. paper mill will install a 700,000-tons-per-year recycled pulp and paper operation, taking in mixed paper and OCC and shipping the output to China for packaging production.

• Moving from graphic to recycled packaging: Ohio-headquartered Verso Corporation, which operates six mills in the Midwest and Northeast, is undergoing a shift in the paper products it makes. The company is moving toward recycled paper packaging production.

• New recycled paperboard system – but no capacity increase: Mill operator Graphic Packaging will spend $600 million to install a recycled paperboard system. The project will have a capacity to produce 500,000 tons per year, but the company says the investment will be “capacity neutral.”

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