Declining demand forces strategic shift toward packaging and higher-value paper grades

North Pacific Paper Co. (NORPAC) is set to cease newsprint production at its Longview, Washington mill effective May 1, according to reports from Fastmarkets.

While the move may appear as a routine product adjustment, the broader implication is far more significant:

👉 After this shutdown, the United States will be left with only one operating newsprint mill.

That mill is Inland Empire Paper Co. in Millwood, Washington.

A structural decline — not a temporary market cycle

Data from the Pulp and Paper Products Council reinforces what industry operators already see on the ground:

• North American newsprint production fell 18.8% in 2025
• Total output dropped from 2.05 million tons to 1.66 million tons
• Demand declined by 15% year-over-year

This is not a short-term fluctuation.

It reflects a long-term contraction driven by structural changes:

• digital media replacing print circulation
• reduced advertising volume in newspapers
• ongoing closure of printing facilities

👉 In practical terms:

Newsprint is no longer a growth segment—it is a managed decline.

NORPAC’s strategy: shifting capacity, not exiting the market

Importantly, NORPAC is not shutting down its Longview operations.

Instead, it is reallocating production capacity toward:

• other graphic paper grades
• recycled packaging paper

The company is already a major recovered paper consumer, ranking:

• No. 9 in North America
• 575,000 tons of recovered fiber consumed in 2024

👉 This matters.

Because it shows the direction clearly:

from print media paper → to packaging and recycled fiber-based products

Why packaging is absorbing the shift

From a production and investment standpoint, this transition is logical.

Packaging grades offer:

• more stable demand
• growth driven by e-commerce and logistics
• compatibility with recycled fiber systems

In contrast, newsprint faces:

• shrinking volume
• price pressure
• limited innovation pathways

👉 For mill operators:

converting capacity is often more viable than sustaining declining segments.

North America vs Canada: a widening gap in newsprint capacity

After NORPAC exits, the regional contrast becomes clear:

United States

• 1 remaining newsprint mill

Canada

• 9 operating newsprint mills, including:
  • White Birch Paper (3 mills)
  • Domtar (2 mills)
  • Kruger (2 mills)
  • Alberta Newsprint (1)
  • Kap Paper (1)

This imbalance reflects:

• stronger export orientation in Canada
• continued support for certain print markets
• different cost structures and fiber access

Recovered fiber advantage: a key competitive factor

NORPAC’s position as a major recycled fiber user is not incidental.

Recovered paper systems:

• reduce reliance on virgin pulp
• align with packaging demand
• support circular material strategies

👉 For converters and packaging producers:

mills that control recycled fiber streams are better positioned for long-term stability.

Editorial insight: What this means for converters and machinery buyers

For companies in:

• paper converting
• slitting and rewinding
• packaging production

this shift carries direct implications:

1. Newsprint converting demand will continue to shrink

Machines dedicated to:

• newspaper rolls
• printing press supply

→ will face declining utilization

2. Packaging grades will dominate future investment

Expect growth in:

• recycled linerboard
• wrapping paper
• flexible paper packaging

👉 This directly increases demand for:

• high-speed slitting systems
• tension-stable rewinding machines
• precision width control for packaging formats

3. Machine flexibility becomes critical

Converters will increasingly need:

equipment capable of switching between paper grades, not single-purpose lines

4. Raw material sourcing strategies will shift

As mills pivot:

• recovered fiber demand increases
• supply chain competition intensifies

Final perspective

NORPAC’s decision is not just about one mill or one product line.

It marks a turning point:

the near-complete exit of newsprint production from the United States.

And more importantly:

a clear signal that the paper industry is no longer centered on print—but on packaging, recycling, and material efficiency.

For those still aligned with declining segments, the message is direct:

Adapt capacity—or be forced to exit it.

Last Updated on 30/03/2026 by Jota Machinery