Paper Industry On A Roll

Look for an intense period of alliances and acquisitions in the global paper industry in the wake of the US$8.5 billion merger of Sweden's Stora Kopparbergs Bergslags AB and Finland's Enso Oyj. The merged company, with an annual output of 15,000 tons of paper and board, will be the world's largest producer -- although the five largest companies in the fragmented industry account for only 13% of world output.

One Enso executive expects that to change, with consolidation redrawing the industry profile, making the five largest producers account for 40% of production -- as has already happened in autos and aerospace.