Does the Somoa, CA (Evergreen) mill signal the start of additional mill shuts?

Analysis of: Evergreen Pulp to Shut Down Indefinitely Due to Weak Market Conditions |

http://www.paperage.com

 Dave Hillman

Implications: This unbleached softwood mill was originally purchased about five years ago to supply UBK for Lee & Mann’s several linerboard mills in China. Last year capital money was spent to upgrade it to a fully bleached NBSK mill.  Since the demand in China is still there, does this mean that Lee & Mann can purchase NBSK more cheaply on the open market? 

Analysis: The Evergreen mill (formerly known as Somoa when it was owned and operated by Louisiana Pacific) could produce both an Unbleached Softwood as well as a TCF NBSK (but at high costs).  Lee & Mann was able to purchase the mill at a very low price from bankrupt Pacific Partners Ltd.  It was a minimum manpower mill with only 215 employees.  Cash costs were in line with other N.A. mills and, being located on a deep water port, found it easy to ship to China.  But, now the mill has been shut down indefinitely and will not reopen until pulp prices improve.  Some industry observers say this could be as late as 2010 because so many producers will be forced to keep pumping out pulp to generate cash flow.

http://www.glgroup.com/News/Does-the-Somoa-CA-(Evergreen)-mill-signal-the-start-of-additional-mill-shuts–28477.html

http://urlet.com/silliness.lone