July 2001 Issue

• Paper Clips Bulletin Overview
• Webcom Paper Developments: Shade Changes for Webcom Book Brite and Paperback 4 pt.
• Industry Trends and News
• Paper Supply
• Pricing Trends
• Webcom Paper Grades: Projected Trends for July and August '01
• Paper Tips

Due to supplier grade rationalization Book Brite will be made to a more blue-white shade, resulting in a cleaner appearing sheet. The brightness will remain at 75 points and cost is uncompromised. Your Webcom Sales Representative will have samples of the new Book Brite to add to your Webcom paper sample library.

Our Paperback 4 pt. will also be undergoing a shade change resulting in a cleaner, blue-white sheet. The new shade does not compromise the look of your previously-printed paperbacks. Caliper will remain at .004 (500 ppi). Our Paperback 4 pt. is a good economical alternative to our Hi-Bulk and Book Brite papers. Samples of the new Paperback 4 pt. will be available from your Webcom Sales Representative.

With a cost savings of 4% and excellent print characteristics - opacity (92) and brightness (83) - Publishers’ Preference is an excellent alternative to Fine Paper. Publishers’ Preference runs extremely well on our web presses and achieves sharp line and halftone resolutions. Its advanced manufacturing process means it uses 50% less pulp than standard book papers and it is completely chlorine-free, making it a good choice for environmentally-concerned customers and an alternative to recycled offset.

Industry Trends and News

Capacity management and the balancing of supply and demand continue to be the focus of most paper mills. Removal of tonnage and sale of mills or closure of paper machines have been accelerated (e.g., Abitibi's newsprint reduction has been stepped up by at least 6 months.) Sappi has closed their fine paper mill in Alabama which produced Book Opaque-type papers. We repeat our message of advanced planning to coincide with print schedules.

Domtar Inc. vaulted to the number two position of uncoated fine paper producers in North America with its acquisition of four of Georgia Pacifics' mills. This gives Domtar the opportunity to supply the book industry with a variety of basis weights in fine papers in addition to cover papers.

The proposed acquisition of Williamete by Weyerhaeuser now seems imminent.

Paper Supply

Effects of Consolidation and Mill Closures on Paper Supply
	Tonnage 2000	Tonnage 2001	Reduction	Notes
Uncoated Free Sheet (Book Opaque)	14mm tons	12.35mm tons	12%	This is tonnage that has been permanently removed from production
Standard and Directory Newsprint	16mm tons	14.88 tons	7%	World leader, Abitibi, has permanently shut 6 paper making machines, putting 650 people out of work. Bowater, the number two producer, continues its 200,000 ton rationalisation.
Uncoated Groundwood	3.5mm tons	3.39 tons	3%	The permanent shutdown of 3 mills resulting in 600 job losses is responsible for the reduction

Pricing Trends

The general economic malady has hit the pulp and paper industry squarely. Pulp pricing has eroded by up to 25%. Pulp producers are announcing production stoppages for periods as far off as Fall 2001.