FINANCIAL ANALYSTS: Fluff pulp - Sun Paper Arkansas mill delayed, meaningful volumes not expected until 2021 [VRP]




NEW YORK, July 22, 2016-

- excerpt from Vertical Research Partners

Qualified Fluff Not Seen Until 2021 at the Earliest – A local affiliate of National Public Radio (KUAR, 89.1 FM) in Little Rock, AR published a detailed article on its website detailing how the planned Sun Paper pulp mill slated for Gum Springs in Clark County will not see construction began until the third quarter of 2017 at the earliest. Assuming an aggressive 2.5-year construction schedule, the mill therefore would not likely start until 2020 – meaning that “qualified” fluff pulp in meaningful volumes would not be available until about 2021 at the earliest. (Fluff pulp is produced by International Paper, Domtar and others and is used in absorbent products such as disposable diapers and feminine care products).  This now “best case” timetable confirms our “expected” view published in our May 23rd report on fluff pulp. We see this news as likely benefiting Buy-rated International Paper and Domtar, two major fluff pulp producers.


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