Global Competitiveness of the U.S. South’s Linerboard Sector, 2005 Engineering, Pulping & Environmental Conference

The U.S. South is the world’s leading linerboard producer; this thirteen state region accounts for nearly a third of the global capacity. The linerboard industry takes advantage of ample fiber supplies and well developed industrial infrastructure. Rising trade and intensifying global competition, however, put the industry under increasing pressures to improve its competitive position. The industry is negatively affected by rising manufacturing costs, production shifts to countries of origin for imports such as China, and the development of cost-effective kraft linerboard alternatives such as testliner and kraft-top testliner. To assess the industry’s competitive position, we examine its technological assets, manufacturing costs, and product markets. We find that the industry is about average in terms of technological assets and above average in manufacturing costs, which indicates that, in absence of any changes, the industry may experience increasing problems in retaining its leading position. We analyze virgin and recycled fiber costs and availability, investments in new capacity, and product standards and markets in search for solutions that would raise the competitiveness of the U.S. South’s linerboard industry.