Eastern Railroad Discussion > Another Maine paper mill closing...

Bucksport, by the end of the year.

http://www.streetinsider.com/Corporate+News/Verso+Paper+(VRS)+Plans+Bucksport+Paper+Mill+Closure%3B+Sees+Severance+Costs/9877514.html

Anyone care to list the Maine mills that will remain after this one's gone? The circle is getting pretty tight. This could certainly kill the remainder of the Maine Central east of Northern Maine Junction.

Forgive me for not knowing much about paper mills but where is the business going? Overseas? Less demand?



Edited 1 time(s). Last edit at 10/01/14 19:30 by wabash2800.

wabash2800 Wrote:
-------------------------------------------------------
> Forgive me for not knowing much about paper mills
> but where the business going? Overseas? Less
> demand?


Less demand, everybody looks at a computer now, not papers.
Verso Jay Maine still open.

gmojim

There is less demand BUT, all of the stuff coming from China is made in Chinese boxes. Packaging that used to be for stuff made here that is now made there has also been lost. Just look at the label on the bottom of the boxes with the Cheena chit and most if not all is made in China or somewhere else over there. Most of it is a lesser grade cardboard. You can just look at it tell it's crap cardboard-don't let it get wet! What ever is in the box will fall right out.
MAYBE we will get some of this work back if we don't keep getting sold out by our own companies just to make a buck at all of our expense.
I better stop now.
Mike

wabash2800 Wrote:
-------------------------------------------------------
> Forgive me for not knowing much about paper mills
> but where is the business going? Overseas? Less
> demand?

Maybe not a correct answer for your query but at my local recycle center in the Boston area, I've seen CSX containers load up pallets of bailed cardboard and paper for export to Asia to be used a fiber source for paper. Quite the backhaul!

One other somewhat related factoid, apparently Pan Am RR intends to shift its significant New Brunswick Southern interchange traffic from the MEC line between N Maine Jct (Bangor) and Mattawamkeag to a routing that uses CMQ from NMJ to Brownsville Jct for interchange with NBS. If Bucksport traffic disappears due to this mill's shutdown, that could be final coffin nail for PAR service/trackage east of Bangor.



Edited 1 time(s). Last edit at 10/02/14 02:39 by JPB.

Every time someone goes "paperless" for paying bills you affect not only paper mills but also the postal service. When you read a magazine or newspaper on line instead of getting a home subscription, you affect paper mills, and in the case of magazines, also the postal service. And no one writes letters anymore - it's all email. That's a BIG loss of revenue for paper manufacturers and our postal service. We still have a large tree hugger crowd out there who don't realize trees for paper production are almost 100% produced from tree farms - trees grown expressly for paper production.

Rathole Wrote:
-------------------------------------------------------
> Every time someone goes "paperless" for paying
> bills you affect not only paper mills but also the
> postal service. When you read a magazine or
> newspaper on line instead of getting a home
> subscription, you affect paper mills, and in the
> case of magazines, also the postal service. And
> no one writes letters anymore - it's all email.
> That's a BIG loss of revenue for paper
> manufacturers and our postal service. We still
> have a large tree hugger crowd out there who don't
> realize trees for paper production are almost 100%
> produced from tree farms - trees grown expressly
> for paper production.


Excellent observation.

Fewer people buy daily newspapers or magazines, which are other business uses for pulp and recycling. Shows up in the kaolin business, too.

"...Shows up in the kaolin business, too."

I was wondering where all those white tankers and covered hoppers went, I should've done the math.

Brain flatulence...

Governor_Oyle Wrote:
-------------------------------------------------------
> "...Shows up in the kaolin business, too."
>
> I was wondering where all those white tankers and
> covered hoppers went, I should've done the math.
>
> Brain flatulence...


Yep, kaolin is what gives the gloss to glossy paper.

Speaking of cardboard bales, a local recycling company near me collects cardboard bales and makes them into bigger bales. What got me is they then load them up on shipping containers and send them overseas to get actually recycled over there.

Verso Bucksport makes printing paper for magazines and newspaper inserts, mail advertising etc, the demand is down every year. They do not make the heavy brown craft paper that boxes are made of.
My largest customer is shipping the brown craft paper for boxes and that business is still rolling strong.

gmojim

California is outlawing plastic bags for the most part. Perhaps that'll bring up the demand for paper (paper bags)? Funny contradiction that the tree hugger state will have more trees cut down to satisfy the change... But likely not in that state.

wabash2800 Wrote:
-------------------------------------------------------
> California is outlawing plastic bags for the most
> part. Perhaps that'll bring up the demand for
> paper (paper bags)? Funny contradiction that the
> tree hugger state will have more trees cut down to
> satisfy the change... But likely not in that
> state.

The push is to use reusable cloth bags.