Graham Moore in Paper 360º - The specialty paper market
14 September 2011
Specialty papers offer a good way to improve profitability, but there is no guarantee that in every case a specialty paper grade will improve margins.
Specialty grades offer papermakers higher profitability compared with commodity products. They can be made on the same equipment, and be a means of broadening product lines into niches for both improved risk spread and for moving into areas where competition is less intense - often small but growing segments driven by new technology.
For the company that takes the risk to develop a niche segment, there is considerable potential for higher margins. They can create a unique selling proposition that is innovative, too complex to copy, and that has unique features. These companies can add functionalities that were not available before or features that complement some new development and improve the whole product.
To read the rest of Graham Moore's article in Paper 360°, please access the pdf here.