Globalisation, Changing Markets and the Challenge to Paper Coating, 1999 Coating Conference Proceedings

David Clark

Industry Consultant

In the very broad spectrum of paper grades and end-uses, coated paper stands out because of its unusual combination of growth, volume, value, technology and exposure to change. Global consumption of coated paper, driven by the rapid spread of colour printing, reached 35 million metric tons in 1997, growing at 5% a year, about double the industry average, with a sales value in the region of $30 billion. Like many sectors of the industry, the production of coated paper has become increasingly capital intensive, cyclical and competitive. The speed, sophistication, capacity and cost of coating machines have all increased steadily, encouraging concentration among producers. Many of the old familiar landmark company names have gone, acquired by new owners or absorbed into larger groups. The coated paper sector today is almost unrecognisable from the business I first got to know over thirty years ago as the development of high speed blade coating began to spread from the United States across the world, transforming coated paper from a small scale, expensive, local, limited speciality into the mass-produced, global product range of today.

In this presentation with its theme of globalisation, changing markets and technology I would like to highlight a few key points aimed primarily at those of you who are technicians, engineers and scientists working within the industry, whether for producers, suppliers or research institutes. The key points are: profitability; globalisation; market forces; the shifting production base; the challenge to coating technology especially in the United States and finally the change in attitudes and horizons required for success or even survival in quite different business conditions where the past may no longer provide a reliable guide to the future.

Let me start with the problem of profitability.