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Overcapacity hurting Western European paper mills

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Brussels, Belgium—Overcapacity of coated woodfree and coated mechanical papers in Western Europe has reached 1.2 million tons, according to RISI's "European Coated Papers Risk of Closure Study," which was released Monday. The study said this overcapacity has lowered prices and hurt producer profitability in Europe.

The study concluded that Western European paper mills, which will be hurt by additional paper supply coming from Russian and Chinese mills, will reduce capacity by 2.7 million to 3.5 million tons by 2015.

"Coated paper mills are currently operating at a loss in Europe. To maintain profitability, prices will have to rise and capacity needs to be balanced, through closures," Sampo Timonen, director of European Graphic Papers at RISI and author of the study, said in a statement.

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