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WORLD PULPPAPER 11 of new capacity as did North American operators. One of the reasons for this difference is that the industry in Europe was built and continues to operate today on an export strategy. So even if domestic demand in Europe declines European producers still tend to expect to export and therefore to invest. An obvious result is that the European stock of assets is considerably newer than that found in North America as shown in Figure 7. The consequence of this however is that some European assets are considerably more competitive than others Figure 8. This will be important as will be demonstrated later. As demand growth rates in some grades decline the need for closures in those grades increases. Which brings us to another factor determining the future of investment consolidation. As Figure 9 shows the European industry is significantly less consolidated than it is in North America. Whereas large companies in As demand growth rates in some grades decline the need for closures in those grades increases Figure 7. Continued European investment has made its assets more competitive Figure 8. The North American containerboard cost curve is flatter than Europes Figure 6. Europe has continued investing in new capacity even with declining demand