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Coated Free Sheet Paper From China, Indonesia, and Korea - page 162 / 198

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“Machinery and raw materials (see II-3c above).”

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“The base paper for uncoated and coated free sheet is made on similar paper machines. Coated paper goes through a coating and supercalendaring process.”

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“The manufacturing processes for making uncoated free sheet papers and the basestock for coated free sheet papers are similar and are often produced on the same paper making equipment. However, the application of coating to the basestock and post coating finishing/calendering requires special coating application equipment. This coating and surface calendering equipment is found both “in-line” on the paper machine as well as “off-line” as individual stand-alone coating equipment.

Paper coating equipment must be supported with specialized coating preparation equipment which holds, mixes and supplies coating material to the coating process. Coating preparation and coating process equipment require labor specifically trained in operating this type of equipment.”

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“Uncoated Process: Paper is made on the paper machine the{n} cut and wrapped. Coated Process: Paper is coated after it is made on the paper machine, then it may be calendered. It is then cut and wrapped.”

Channels of Distribution

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“Both products can be sold direct to printers and converters or through merchants and brokers.”

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“The majority of coated free sheet paper (approx. 80%) is sold direct to customers with the balance (20%) sold through distribution. By contrast, uncoated free sheet paper is sold primarily to two customer segments: 1) Book publishers (10% direct; 90% distribution); 2) Envelope customers (100% direct).”

D-6

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