Beginning in 1954, however, Tennessee Paper began losing customers to companies manufacturing lower-cost folding cartons and corrugated and plastic containers.

Last February, Stone paid $510 million for the Champion International Corporation, which makes corrugated containers and strong brown wrapping paper.

Its products include containerboard, corrugated containers, paper sacks and bags.

Mr. Stone said the combination provided evidence of the consolidation taking place among makers of container board, corrugated containers and paper products, which must compete on an international basis.

He cited the "remarkably short list" of commodities that rose in price in September: aluminum, caustic soda, corrugated containers, linerboard, natural gas, soybean oil and zinc.

Bales of recycled paper (normally old corrugated containers) for unbleached (brown) packaging grades may be simply pulped, screened and cleaned.

Stone Container announced plans to sell its wood-pulp businesses to focus on corrugated containers and cut $1.5 billion from its $4 billion debt.

Old corrugated containers are an excellent source of fibre for recycling.

"Getting Americans to buy plastic corrugated containers instead of cardboard ones is very difficult," said Ruth Stafford, Kiva's vice president.

Smurfit-Stone derives about three-quarters of its sales from container board and corrugated containers.