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Industry trends world pulppaper12 Figure 8. North American uncoated freesheet Stage 3 consolidation with top three producers accounting for 67 market share Figure 9. North American tissue and towel Stage 3 consolidation with top three producers accounting for 60 market share Figure 10. Asia Pacific growth has been rapid and continuous over the past decade To summarise North America is a typical low-growth region characterised by mainly Stage 3 concentration and further consolidation. It is also notable for the tendency of large organisations to spin off non-core business areas. A good example of this is IPs disposition of its distribution company xpedx which merged with Unisource to become Veritiv. The distribution sector is relatively unconsolidated so there are opportunities here to boost profit through organic growth. asIa PacIFIc The Asia Pacific region is key to understanding why paper is featured in Stage 2 of the Harvard Business Review article. Its growth over the past two decades has been rapid and continuous with new companies mills and capacity springing up regularly in all sectors Figure 10. Growth in coated papers has been flat since 2007 but containerboard capacity has more than doubled since 2007 uncoated freesheet is up by around two-thirds and tissue has tripled in seven years. In Asia Pacific the top three producers have 23 of the containerboard market - Stage 1 Figure 11. Here though the technology is not new in absolute terms it is new for the region. And Asia Pacific boasts by far the largest number of state-of-the-art new paper machines in the world. Coated paper in Asia Pacific by contrast is in Stage 3 with the top three companies sharing 45 of the market Figure 12. MA activity has not yet had a significant impact on this market but we expect that this will start to create more concentration in the near future. Again concentration is also likely to be achieved through closures. In uncoated freesheet concentration is at 18 - Stage 2 Figure 13. The industry is continuing to add capacity but with slowing growth the focus will switch from investment in new machines to MA and most likely closures and repurposing. Growth over the past two decades in the asia Pacific region has been rapid and continuous with new companies mills and capacity springing up regularly