Overcapacity creates risk of closure in global tissue markets despite growth in demand

AsiaNet 49424

BRUSSELS, May 23, 2012 /PRNewswire-AsiaNet/ —

RISI, the leading information provider for the global forest products industry, today announced a risk of capacity closure in the global tissue market. These closures might be necessary despite a pattern of continued growth in demand, according to the recently released 9th edition of the Outlook for World Tissue Business [ http://www.risiinfo.com/risi-store/do/product/detail/outlook-for-world-tissue-business.html?source=PR1205SS
].

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“Tissue consumption has grown steadily for the last 20 years and is expected to continue into the foreseeable future. However, oversupply from massive capacity investments may force shuts in the near-term,” said Esko Uutela, Principal for Tissue at RISI.

Global consumption of tissue grew at an average annual rate of 3.8% from 1991 through 2010. That demand is expected to continue to grow by an average of 4.1% annually between 2010 and 2021. China, which in recent years has shown explosive growth in tissue consumption, is one of the major drivers of global tissue demand.

Meanwhile, new supply from capacity expansion investments, particularly in China, Latin America and North America, will send the global tissue capacity utilization rate into decline after 2012. In 2013 it is very likely that the average industry operating rate will fall to nearly 85% and remain at that level through 2014 despite the expected growth in tissue consumption.

For more information on the Outlook for World Tissue Business, visit http://www.risi.com/owtb.

About RISI (http://www.risi.com)
Owned by UBM plc, which is listed on the London Stock Exchange, RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, biomass, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout North and South America, Europe and Asia.

About UBM plc (http://www.ubm.com)
UBM plc is a leading global company. We inform markets and bring the world’s buyers and sellers together at events, online, in print and provide them with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists around the world. Our 6,000 staff in more than 30 countries are organised into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently.

For Press Enquiries, please contact:
Thom Smith
Dir. Marketing
O: +1-781-734-8990
E: tsmith@risi.com

SOURCE: RISI