SIC 2631 Paperboard Mills

SIC 2631

This industry consists of establishments primarily engaged in manufacturing paperboard from wood pulp and other fiber pulp. Paperboard mills may also manufacture converted paperboard products. Establishments primarily engaged in integrated pulp production and paperboard manufacturing are included in this industry if they ship mostly paperboard or paperboard products. Establishments primarily engaged in manufacturing converted paperboard products from purchased paperboard are classified in Industry Group 265 or 267. Establishments primarily engaged in manufacturing insulation board and other reconstituted wood fiberboard are classified in SIC 2493: Reconstituted Wood Products.

NAICS CODE(S)

322130

Paperboard Mills

INDUSTRY SNAPSHOT

U.S. paperboard producers manufacture the vast majority of paperboard consumed in the United States. In addition to dominating the domestic market, they also hold a strong position in the international market. U.S. paperboard mill shipments were valued at $21.2 billion in 2006, according to a report by Supplier Relations US LLC. The largest category was unbleached kraft packaging and industrial converting paperboard, followed by recycled paperboard, bleached packaging and industrial converting paperboard, semichemical paperboard, and wet machine board.

Two grades of paperboard—corrugating medium and linerboard—are used to make corrugated shipping containers. These two grades account for the majority of paperboard produced in the United States. A third grade—solid bleached sulfate (SBS), used for folding cartons such as those used in retail stores—accounts for a large share of the remaining production. Paperboard grades also are distinguished between folding and non-folding grades. Folding grades have to be flexible enough so that when the board is folded to make a box—such as a cereal box—the surface will not split or crack.

Paperboard production typically is about 88 percent to 98 percent of total capacity, depending on economic conditions. A survey from the American Forest & Paper Association indicated that in 2006, the capacity for only linerboard and unbleached kraft folding boxboard rose; capacities for these segments increased 0.2 percent and 3 percent, respectively. At the same time, the capacity for corrugated medium dropped 4.6 percent, bleached paperboard declined 4.9 percent, and recycled paperboard dropped 3.1 percent.

ORGANIZATION AND STRUCTURE

Paperboard production in the United States is divided into four major categories:

Unbleached kraft paperboard, which is made from pulp containing not less than 80 percent wood fibers produced by the sulfate (kraft) process. Since it is unbleached, this type of paperboard retains a brown color.

Recycled paperboard, which is manufactured from a combination of recycled fibers from various grades of paper stock, with the larger portion of the pulp being recycled fibers and the lesser amount being virgin fibers. Recycled paperboard that contains no virgin fibers is commonly called 100 percent recycled paperboard.

Semichemical paperboard, which is made from pulp containing not less than 75 percent virgin wood fibers, the majority of which is produced by a semichemical process.

Solid bleached packaging paperboard, which is used in packaging and made from pulp containing not less than 80 percent bleached virgin wood fibers. This paperboard is white and is used for higher-end packaging applications, such as milk cartons and frozen food packaging.

More paper and paperboard is used to make packaging than in any other single application. While most paperboard is still made from virgin fibers (trees), paperboard mills have traditionally used a large percentage of recycled fiber because of favorable economics. The use of recycled fiber in paperboard production is growing quickly, especially in products in which the reclaimed pulp does not need to be cleaned. Combination boxboard, for example, is used in cereal cartons where two white outside layers mask a recycled, gray inner layer.

Paperboard produced on cylinder board machines has commonly been made from recycled fibers. Cylinder machines form the paperboard web in separate layers, which are then pressed together. This process makes it possible to hide a layer of recycled board, which can have poor appearance and lower strength between two outside layers of virgin material.

Fourdrinier paperboard machines, which traditionally have made paperboard in a single web, are generally used to make virgin paperboard since it makes a superior web from one fiber source. Newer paperboard machines, however, include machinery that allows the formation of a single web from different fiber sources.

Kraft softwood has been the preferred pulp for making paperboard because of its superior strength characteristics. While most paperboard is unbleached, retaining the characteristic brown color of the pulp, bleached grades are often used where the consumer is likely to see the box—such as gift boxes and food and beverage packages. Besides food applications, cosmetics and other high-profit products use the more expensive bleached board because they can afford its higher cost.

Paperboard comes in a wide variety of styles and qualities but can be divided into two categories based on its use: containerboard, which includes all the materials used for making corrugated boxes, and boxboard, which includes all the materials used for making non-corrugated packaging such as food containers and department store boxes. Containerboard is divided further into two subcategories: corrugating medium, the inner fluted part of the box; and linerboard, which makes up the outer faces, or layers, of the box. Corrugating medium—or just "medium," as it is often called in the trade—is made from both semichemical pulp and recycled fiber.

Boxboard is divided into three subcategories: folding boxboard, set-up boxboard, and milk carton/food service boxboard. Most paperboard can be coated with a pigment such as clay to improve printing properties. Most grades of paperboard can also be...

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