World Dissolving Pulp Demand Recovers to 1990 Pre-Crisis Levels

Demand increased sharply over last decade to reach 4.5 million tonnes in 2010

BRUSSELS, March 1, 2011 - World dissolving pulp demand reached its peak in 1975 at 5.3 million
tones. It decreased over the next three decades, with a dramatic decline in
the early 1990s due to the collapse of Communism in Eastern Europe. Demand
reached its lowest point in 2000 at 3.2 million tonnes, but has increased
dramatically over the last decade. Last year, demand for dissolving pulp
again reached its pre-crisis level from 1990 of 4.5 million tonnes. Whether
this turnaround in demand and price of world dissolving pulp is set to
continue, is the subject of RISI's new study Outlook for Global Dissolving
Pulp Market.

    (Photo: photos.prnewswire.com/prnh/20110301/NE56862 )
    (Logo: photos.prnewswire.com/prnh/20080521/NEW122LOGO )

The main end uses of dissolving pulp are:

    - Viscose fiber or rayon used in clothing
    - Acetate tow and fibers used in cigarette filters
    - Ethers and microcrystalline cellulose (MCC) used in pharmaceuticals and
      as a food additive
    - Nitrocellulose used in paints and explosives

The big turnaround in dissolving pulp demand has been led by the viscose
fiber market where the popularity of rayon, mainly for garment production,
has been boosted by limited supplies and surging prices of cotton. China,
where dissolving pulp consumption for garment production has tripled over the
past ten years, accounts for all demand growth in the past decade.

Such strong demand and high prices have attracted pulp producers in the
Southern hemisphere to start new dissolving pulp lines, while in the Northern
hemisphere paper grade mills are converting to dissolving pulp.

"We're looking at getting a 10% addition to capacity in just one year –
an indication of how excited people are getting about this market," said Rod
Young, Chief Economic Advisor to RISI, and author of the study. "A big
concern is that capacity keeps growing rapidly and we get into an
overcapacity situation."

The Outlook for Global Dissolving Pulp Market provides a detailed global
analysis of the dissolving pulp market spanning fifteen years, with
historical data for the past ten years and a five-year forecast. The study
covers demand, trade and supply on an annual basis from 2000-2015 for all of
the major countries that produce and consume dissolving pulp.

More information, about the study can be found at
www.risi.com/dissolve.

About RISI

RISI is the leading information provider for the global forest products
industry. The company works with clients in the pulp and paper, wood
products, timber, biomass, tissue, nonwovens, printing and publishing
industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout
North and South America, Europe and Asia. More information can be found at
www.risi.com.

    Contact:
    Nichola Heer
    Marketing Manager, Forecasts & Analysis, RISI
    326 Avenue Louise, Bte 22
    1050 Brussels
    Belgium
    Email: nheer@risi.com
    Tel: +32-2-536-0770

Nichola Heer, Marketing Manager, Forecasts & Analysis, RISI, +32-2-536-0770, nheer at risi.com