Alternating increases and declines in the production of paper and paperboard were typical in Serbia between 1996 and 2004. There are 11 producers of paper and paperboard in Serbia. Three major producers are still state owned, whereas the rest are small private enterprises. Annual production of pulp, paper and paperboard is about 330,000 metric tons. The pulp production is mainly used to satisfy domestic needs for paper and just small quantities are being exported. Out of the overall volume produced,
printing paper is the most dominant product.
Despite existing production potential, the majority of producers of pulp and paper are only operating at about 40% of their capacity and Serbia continues to import significant amounts of paper. Wood pulp production amounts to approximately 76,000 metric tons per year, while production capacities are twice as big. Domestic wood pulp production is mainly used to satisfy the needs of Serbian paper producers and only a small portion is exported.
The main activity of small companies, besides sawn wood production and joinery manufacturing, is paper packaging and related paper products. Existence of a significant number of companies in this sector is a result of available raw materials along with relatively small initial investment needed, as well as the fast turnover of invested capital.

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