Ask The Paper Expert Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Ask The Paper Expert

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Don Pueblo who wrote (1)	2/14/1999 10:33:00 PM
From: Ron Mgrublian	Read Replies (1) of 15

I am very familiar with the IP coated papers division. IP is a solid company that makes good products, but I question its overall direction. Recent merchant acquisitions indicate the CEO's intent to integrate forward, but this strategy has seemed have failed every time in the past (unlike the success of backward integration). Perhaps IP fears losing in a manufacturing price war with foreign mills and is setting the stage to become a distributor (ie no more high capital investment of paper machinery - let the foreign mills deal with that). They however have no specialized competencies in the distribution segment and I believe they face some tough decisions in the future. Geographry/shipping plays a big part in my segment and one advantage North American producers have over European and Asian producers is where they are. This too could eventually become an area of concern in the future as European mills such as Stora and UPM/Kymenne establish manufacturing in North America. I often wonder why we don't see more US investment in foreign manufacturing like Champion International's Impacel venture in Brazil. I think this is the kind of investment IP should be concerning itself with rather than distribution.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next