Cellulose and paper producers struggle to see a profit

An increase in the price of utilities and the deepening shortage of domestic raw materials has prevented companies in the cellulose and paper industry from securing profit margins, this year as well as in 2006. The majority of producers in the industry are barely making a profit, and any fluctuation in the price of raw materials or in the exchange rate, directly translates into cuts in personnel and turnover. In 2006, there were temporary and permanent shutdowns for several producers, which led to a proportioned rise in imports. “Cellulose production in 2006 fell against 2005 (by almost 10%), due to some trading companies suspending their activities for both short and long periods, mainly due to the shortage of wood. This was the case for Suceava-based Ambro, Braila-based Celhart Donaris, Drobeta Turnu Severin-based Celrom,” stated Constantin Chiriac, chief executive of the Cellulose and Paper Industry Association (ROMPAP).