The Paper and Pulp Manufacturing industries in Wisconsin employed from 40,000 to 45,000 people in the 1970’s. The industry created seven jobs for each job in the Paper and Pulp Industries. Paper and Pulp Manufacturing was one of the largest employers in the State of Wisconsin. The Paper and Pulp industry created one of the largest Printing, Packaging, Converting, Forestry, and supporting Manufacturing in the World. We were the world’s innovators in Paper Products – Kimberly-Clark, Appleton Paper, Consolidated Paper, Inc. They were among the top paper companies worldwide. They created an economic boom for Northern Wisconsin. Today, the Paper and Pulp Manufacturing Industries employ 7,800. Wisconsin should not have to import fiber from outside Wisconsin and around the world. Many communities and local businesses built around these mills have struggled with the impact. Wisconsin has one of the largest Printing, Packaging, and Converting Industries dependent on Paper Manufacturing. It makes NO SENSE for Wisconsin to depend on Foreign Companies for Paper and Pulp Production. Wisconsin has vast water, forests, and transportation to support the Paper Industry.
One big reason for the closure is the strict DNR rules imposed on Paper and Pulp Manufacturing. We see strict traceability and sustainability standards imposed on the USA Forestry Industry and not on foreign companies. The Paper Mills, once a Powerhouse in Wisconsin, do not have the financial resources to reinvest in the company. The Paper and Pulp Industries operate on a 2 – 3% profit margin with massive investment to keep them running. With two exceptions, the Paper Industry has not put in any new paper machines. The current paper machines in Wisconsin are from fifty to one hundred years old! Recently Ahlstrom closed the pulp manufacturing plant and two paper machines in Mosinee, WI. laying off two hundred employees. The pulp mill is one of the oldest pulp mills in the USA.
Several important factors are responsible for China’s increasing production of pulp and paper.
- State backing and strategic incentives. Chinese mills benefit from Government financing, subsidies, and strategic planning – which often prioritize employment, domestic supply chain resilience, and production targets rather than strictly market-driven profitability.
- By moving from reliance on imported pulp to developing integrated fiber systems, vertical integration provides significant cost advantages. This shift offers benefits such as improved cost, control, greater production stability, and increased cost benefits.
- Since 1978, one of the largest and fastest-growing forest planting programs has resulted in over one hundred billion trees planted, strengthening domestic fiber resources and boosting long-term competitive advantages.
- We have witnessed China’s large investment in infrastructure supporting the paper and pulp industries.
- China is building the world’s largest hydropower to generate energy and water resources.
