The annual report from the Confederation of European Industries (CEPI) suggests that the industry is in a robust state.


CEPI member countries experienced a record level of output with a production of 85.2m tonnes of paper and board, an increase of 3% over 1998.


Exports for 1999 rose by 4.3% to 10.3m tonnes, 20% of which went to north America, 18% to Eastern Europe and the majority of the remainder to Asia.


CEPI statistics manager Eric Kilby said: "The industry is healthy at the moment. 1999 was a good year. Although it started slowly, the last quarter was very good in Europe across all grades."


Imports in 1999 fell by 2.7% to 4.9m tonnes, 47% of which came from North America.


The report also pointed to the current process of consolidation in the industry and said that the output and size of the average paper mill was increasing. "The number of individual companies has declined by around 4%, but the number of mills hasnt. This is the result of recent mergers and acquisitions," said Kilby.


From a wider perspective, CEPI reports dramatic growth. Since 1990 paper and board production and consumption has risen by 35%. During this period global production rose by 22%, with CEPI countries producing 28% of world output, behind North America with 32% and Asias 29%.