From the WSJ:
Three years ago, International Paper Co. closed an enormous mill [in Franklin, Virginia] that for generations had churned out white office paper, putting 1,100 people out of work and dealing a major blow to this tidewater city of 8,500.
Now, the world's largest producer of paper products is reopening part of the mill with an eye toward an expanding market in Asia for personal-care products. With about a fifth of its old workforce, IP's Franklin mill is gearing up to begin producing fluff pulp—the soft, white absorbent used in diapers, tampons, and some medical bandages.
"There is a huge, huge opportunity" as families in the burgeoning middle classes of China, India and other Asian countries are seeking more personal hygiene and baby care products, said Rildo Martini, IP's vice president and general manager for pulp.
...
World-wide demand for the substance has been rising about 4% a year and is expected to keep growing for years to come. ...
...
But the mill on the inky Blackwater River is able to take advantage of Asia's growing desire for fluff because it can be made only from the long, coarse fibers of loblolly pine, a fast-growing tree that thrives in the U.S. South. Its fibers are ground, boiled, bleached and pressed into puffy white material that can absorb what a baby can excrete.
Apparently, American's comparative advantage is in absorbent diapers. Who knew?
