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| 9 - Every Mill Manager's Goal |
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Optimize mill as a whole |
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Maximize profits/cash by: |
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lowering fiber cost |
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lowering manufacturing cost |
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The cost structure of a 500K tons/year softwood chemical pulp mill at full production is as follows: |
| Cost |
Percent |
| Production related/variable costs |
50 |
| Time related/fixed costs |
13 |
| Capital costs |
36 |
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| Data from: |
Economics of the pulp and paper industry, Tappi papermaking & technology series - 1 |
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| 10 - Cost structure |
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In production related/variable costs, wood accounts for 31%, OMS (Operating Materials & Services) for 11%,
chemicals for 7% and energy for 1%, as shown by the following figure. |
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 |
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| Data from: |
Economics of the pulp and paper industry, Tappi papermaking & technology series - 1 |
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