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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.

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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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