Jul 26, 2005. /Lesprom Network/. Although the capacity of these paper grades increased at a pace of close to 7% over the past decade (1995-2004), last year represented an exception with a growth of 1.7% or 55,000 tonnes, CEPIPRINT reported. This limited capacity growth was mainly due to the closure of a paper machine in Finland at the UPM Voikka mill. It should also be kept in mind that the paper machines producing these qualities are normally characterised by their ability to swing from one to the other grades (especially between newsprint and high-brightness). The actual capacity for uncoated mechanical grades can be decided through strategic market decisions rather than simply by investments and new paper machines. Traditionally most of the capacity increase/decrease for these qualities is coming from grade mix changes at existing facilities. Western European shipments increased healthily over the last two years, adding 10% per year both in 2003 and 2004. Such a development was largely supported by an extremely vivant export activity that saw European producers increase their deliveries outside the domestic market by respectively 36% and 20%. Such a development was however not homogeneous between the three main sub-qualities included in the category. While High-Bright papers were able to maintain their share of the total quality at approximately 35% over the past decade, the UMO category (including directory and book paper) saw its share contracting from 45% in 1995 to 35% last year. All the benefit went to the Super- Bright papers that represented in 2004 almost one third of the total deliveries. Western European demand was somewhat weaker than total deliveries, though still growing by 6.4% from the previous year. While High-Bright was largely unchanged, all the growth came from the Super-Bright category (brightness ISO>71) that grew by 39%. Quite a different path can be observed in the UMO category whose demand recorded a new decline in Western Europe. The - 6.8% of 2004 comes after a few years of negative or small growth, leading to an overall contraction of 100,000 tonnes or 12% since the peak year 2000. Largest markets for these qualities remain Great Britain and Germany with respectively 21% and 19% of Western European market share, while on the production side Finland maintains its role of largest producer with over 40% of European capacity.