At Least 300,000 mtpy of New Tissue Capacity Expected in LA in 2018

Tissue producers are preparing a capacity expansion boom in Latin America for the next few years, with at least 300,000 mtpy to be added already in 2018. The data, part of the latest version of RISI's Outlook for World Tissue Business, show that tissue producers in the region plan or have already acquired about 16 new paper machines for the 2018-2021 period, which may raise supply to over 6 million metric tons by 2021.

Latin America's eagerness to add capacity, though, is not new. Between 2014 and 2017, Latin America had a net tissue capacity addition of more than 1.1 million tonnes. "This is quite a lot considering that consumption grew by only 440,000 metric ton between the end of 2013 and the end of 2017," said RISI's Principal, Tissue, Esko Uutela, author of the forecast.

This imbalance between new capacity and demand, consequently, has been weighting on operating rates and making it harder for tissue producers to pass on costs, especially pulp, which increased significantly last year. 

The Outlook also looks at estimated operating rates in the future, projects underway or planned, per capuita consumption, supply and demand estimates.