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Post-Consumer Recycled Paper

(436.3 7-23-1997))  id 85256501.0055FA82 ; Thu, 28 Aug 1997 11:39:06 -0400
X-Lotus-FromDomain: EPA

"Forbes" September 8, 1997 issue has a brief article regarding financing
pulp mills which touches upon the theme discussed here the last week.  The
article includes a chart of 7 pulp mills built with tax-exempt bonds, all
of which are in default or close to it.  Four of the mills are closed.
Forbes attributes this "costly lesson for bondholders" to cyclical price
fluctuations in the pulp market.  Virgin hardwood pulp from Indonesia has
flooded the market, says Forbes, undercutting the de-inked pulp by 25%.

The governmental demand for paper with 30% recycled content is apparently
not enough to offset this price differential.  While it may seem like we
feds churn out more, our paper use is less than 5% of the national total, I
have been told.  Short of direct subsidization of de-inked  pulp (which
just ain't gonna happen), what is YOUR idea for dealing with this issue?

Bill Wilson, EPA Region 9 Pollution Prevention Coordinator
75 Hawthorne Street (WST-1-1), San Francisco CA 94105
phone 415.744.2192 fax 415.744.1796 email wilson.bill@epamail.epa.gov