Impact of Forest Biotechnology on the Economics of Corrugated Box Production, 2004 Engineering, Pulping, and PCE&I Conference

The impact of wood quality on pulp and paper manufacture is underemphasized by mills, but provides important potential for improving mill economics, product quality and product differentiation. Increases in pulp yield due to higher specific gravity, decreased lignin content, and reductions in basis weight due to lower cellulose microfibril angle (MFA) represent opportunities for wood quality improvements to positively impact pulp and paper manufacturing. To estimate the economic potential we determined the value to a kraft linerboard mill of changes in tree properties – in particular, decrease in microfibril angle - with a multidimensional cash flow model that includes loblolly pine plantation forestry and pulp and paper mill costs. We have now extended the economic impact of wood quality changes in linerboard to a box plant, using a newly developed cash flow model of a box plant. The box plant model makes a total of 36.5 million medium, large, and jumbo (1:2:1) boxes per year.

There is a significant impact on box plant economics as a result of reducing linerboard basis weight. Sensitivity analysis of the box plant model with reduced linerboard basis weight shows that for each 2 lb decrease, box plant production cost decreases by 1.2%. Based on empirical data obtained with young loblolly pine trees, we predict that when the average MFA is decreased from 30 to 18 degrees the basis weight of 42 lb/msf linerboard can be reduced to 36 lb/msf and still meet the short span STFI requirements. Such a reduction in basis weight would increase annual box plant net income by 9%. The details of our approaches, assumptions, estimated cost savings and potential impacts of biotechnology on box plant profitability are presented.