A weak advertising market coupled with dwindling sales as a result of the rise of digital media, has meant that the newsprint sector has been hard hit, with many regional titles closing or switching to an online-only presence.

Publishers have also been looking to keep a tighter rein on costs, thus reducing paginations and, therefore, newsprint consumption. In response to this trend, paper manufacturer Norske Skog announced earlier this year that it would take out capacity temporarily - or permanently if necessary - to maintain a good balance between supply and demand. This followed its decision to remove 13% of its European newsprint capacity last year.

Demand decline
According to a recent Stationers' and Newspaper Makers' Company report, which came out last month, newsprint demand will decline by 56% between 2008 and 2020. The report, which was sponsored by Sun Chemical and Paperlinx, also predicted that total demand for end-use markets is predicted to decline by 32.5% by 2020.

The report's publication was closely followed by Guardian News & Media's (publisher of The Guardian and The Observer) announcement that it plans to cut a quarter of jobs at its east-London Guardian Print Centre (GPC). The publisher blamed the economic downturn for 27 redundancies, which are currently subject to consultation.

But there are some good news stories. Newsprint is more environmentally friendly than it has ever been. Today's newspapers can typically contain up to 80% recovered paper and, in some cases, 100% recycled waste paper.

However, developments in ink technology mean that newspapers printed flexo with ‘ink that won't rub off'
can't be fully recycled without a great amount of de-inking taking place.

Regardless of the current state of the market, it's clear that a number of companies have faith in future demand for newsprint. Palm Paper has completed building a new paper mill at King's Lynn, which will begin churning out around 60 lorry loads of newsprint each day by mid-September. And Ecco Newsprint is on schedule with its new recycled newsprint mill in Teeside, which will churn out 400,000 tonnes of newsprint per year at full capacity.

What's new in newsprint

• In March, Johnston Press reported a £429.3m pre-tax loss and warned of uncertainty over its "ability to trade as a going concern", if it could not restructure its debt or sell its Irish titles
• Newspaper publisher and printer DMGT, whose portfolio includes the Daily Mail, reported a 47% decline in profits for the first six months of its financial year. The regional news-paper publisher experienced an 85% fall in profits to the end of March
• This month, Palm Paper said that it was on schedule to open its newsprint manufacturing plant in King's Lynn, Norfolk. Production will begin in September
• Ecco Newsprint expects the total cost of its recycled newsprint mill in Teeside to be around 15-20% lower than the top estimate of £500m, despite the recession and a contraction in the newsprint industry
• In January, paper manufacturer Norske Skog said it would take out further capacity temporarily, or permanently if necessary, to balance supply and demand of newsprint