December 2025: Global Pulp & Paper Industry in Major Transformation

As we close 2025, the global pulp and paper sector demonstrates unprecedented dynamism through major investments, technological advances, and decisive responses to shifting market conditions. This comprehensive monthly roundup reveals an industry actively reshaping itself across every dimension.

🏗️ Major Capacity Expansions & New Projects

Mega-Projects Taking Shape:

• Huatai Group launched a massive 16-billion-yuan integrated forest-pulp-paper project in Guangxi, China, producing 400,000 tonnes of dissolving pulp, 600,000 tonnes of chemical wood pulp, and 900,000 tonnes of industrial paper annually, backed by a 1.5-million-mu forest base

• VKG Fiber advanced its €1.3B greenfield pulp mill project in Estonia with Afry Capital, targeting 1.2 million tonnes annual capacity of bleached softwood kraft pulp for 2029 completion

• Bracell secured preliminary environmental licensing for its multi-billion-real greenfield pulp mill in Bataguassu, Brazil, targeting 2.5 million tonnes annually with 100,000+ hectares of planted forests

• CMPC unveiled its $4.6B Natureza eucalyptus pulp mill in Rio Grande do Sul, Brazil, with 2.5 million tonnes capacity, targeting late 2029 startup with over $50M annual synergies

• Handy is installing a third tissue machine in Egypt, strengthening its MENA market position

• XSD International Paper secured $70M IFC financing ($28M green loan) for biomass cogeneration and a third duplex board line, lifting Malaysian capacity to 800,000 tonnes annually

Successful Startups:

• Greenliner commenced operations of Egypt's largest and most advanced containerboard machine PM1 at its 10th of Ramadan City mill

• Paper Corea achieved record line load startup with ANDRITZ's PrimePress X shoe press—highest ever in South Korea—delivering 5% dryness increase, 20% energy savings, and 30% better moisture profile

• Toscotec started up PM5 AHEAD 2.2L tissue line for Saudi Paper Group in Dammam, with 5.6m trim width, 2,200 m/min speed, and 60,000+ tonnes annual capacity

• Mondi Duino brought its state-of-the-art recycled containerboard machine online in Italy with Voith, producing 420,000 tonnes annually—Mondi's widest recycled paper machine

• Jingxing Paper's Phase II Malaysia project successfully topped out its wet paper processing plant, advancing overseas expansion

• Rex Makinohara plant completed in Japan for RPF production, doubling capacity to 2,000 tonnes/month with rooftop solar and electric equipment cutting emissions 65%

🔄 Major Modernizations & Rebuilds

Production Line Upgrades:

• Umka Carton Mill boosted capacity 70% via Valmet modernizations in Serbia (130,000 to 220,000 tonnes), serving 40+ European countries

• Ajin P&P achieved superior test liner quality through Valmet's Dilution Control Technology on BM2, improving basis-weight profile and fiber distribution

• Billerud is installing a new headbox at Gruvön mill, Sweden, to lift Billerud Flute's strength and performance for April 2026

• Matías Gomà Tomàs unveiled multimillion-euro strategic plan through 2030 to upgrade its main recycled paper machine in Spain

• PCA announced Wallula Mill reconfiguration for enhanced efficiency and sustainable corrugated solutions

• Irving Pulp & Paper awarded B&W Canada $10M+ boiler refurbishment contract for spring 2026 outage in Saint John, NB

• Valmet to supply Advantage ViscoNip press to five Lee Paper tissue machines, enhancing dewatering and product quality

Equipment Installations:

• Linney Group acquired sixth Bickers GLUEJET® (2x3m model) for display production in Mansfield, UK

• Klingele expanded corrugated capacity at Wunsiedel with highly automated EMBA QS Ultima 215 line

• Pavlov-Posadsky Goffrokombinat launched new Shinko line for premium four-flap corrugated boxes in Russia

• Matsan Ambalaj commissioned Heidelberg Speedmaster CX 104-7+L UV offset press in Istanbul for folding carton packaging

💼 Major M&A & Strategic Partnerships

Blockbuster Deals:

• UPM and Sappi signed non-binding LOI to form strategic graphic paper joint venture combining their European graphic paper businesses—a major consolidation move amid declining demand for printing and writing papers, enabling cost efficiencies and optimized asset utilization across production facilities, sales networks, and supply chains

• Brookfield acquired Fosber for $900M from Guangdong Dongfang Precision, backed by $480M equity including $170M from Brookfield Business Partners

• ProAmpac to acquire TC Transcontinental Packaging for $1.51B, adding 25 plants across North America, Latin America, UK, and New Zealand

• Valmet to acquire Severn Group for ~$480M (EUR 410M) cash-and-debt-free, adding severe-service valve expertise across three divisions

• Canfor Corporation to acquire full ownership of Canfor Pulp via arrangement, offering 0.0425 Canfor shares or $0.50 cash per Canfor Pulp share (25% premium)

Strategic Partnerships & Stakes:

• APC Group acquired i-Chem Solution to strengthen Water Management segment with end-to-end solutions

• VPK Group increased Ribble stake to 50% for joint control, boosting European fanfold network

• TIPA acquired SEALPAP to expand sustainable flexible packaging portfolio with recyclable coated papers

• Koehler Group acquired Klumpp + Müller logistics firm via new Koehler Logistics GmbH, securing pulp supply chain

• Saica Group acquired FCC Ámbito's paper recovery operations, adding 7 plants and 150+ employees across Spain

• GHK-backed JohnsByrne acquired Municipal Packaging in Los Angeles, expanding to West Coast

• ITC's ₹3,498-crore acquisition of Aditya Birla Real Estate's Century Pulp and Paper cleared by India's CCI

🌱 Sustainability & Decarbonization Breakthroughs

Carbon Reduction Leaders:

• Colpac released 2025 ESG report showcasing 22% carbon reduction and industry advocacy leadership

• Gmund Paper won German Sustainability Award 2026 for resource efficiency excellence

• Voith won German Sustainability Award for Infinity Green press felts recycling with unlimited cycles, 31% lower carbon footprint

• Ibema secured top A rating in Paraná Climate Seal for environmental excellence

• Bracell won 2025 Amcham Eco Award for One-for-One conservation commitment (1 hectare conserved per 1 hectare planted)

CDP Leadership:

• SCA earned place on CDP's 2025 A-List for climate and forests

• Ahlstrom secured climate leadership A score for second consecutive year

• Metsä Board renewed Triple A CDP status for climate, water, and forests—fourth consecutive year

• Oji Holdings selected for CDP "A List" in Forests for fourth consecutive year

Circular Economy Initiatives:

• Arauco Argentina accelerates circular economy with Zero Waste 2030 Program, targeting 1.5M tonnes CO₂ reduction

• Re-Gen invested £20M in cutting-edge recycling facility in Newry, creating 50 jobs with AI-powered sorting

• Essity turned paper crumb waste into kiln-dried animal bedding with Veolia and Arden Wood Shavings

• BASF, Essity, and TU Wien proved diaper recycling can create new chemical value via gasification at 600°C+

📦 Packaging Innovation & Plastic Replacement

Major Plastic-to-Fiber Shifts:

• Yuseungin Nature launched eco-friendly paper wet wipes with Moorim P&P, replacing plastic substrates

• NordseeMilch switched to Elopak Pure-Pak cartons, significantly reducing plastic in German dairy packaging

• Ehrmann Cornish Dairy cuts plastic with switch to Pure-Pak cartons for Trewithen cream at 500 Tesco stores

• Costa, Coles, and Opal launched cardboard packaging trial for Perino® tomatoes in Victoria, replacing 80% rPET plastic

• Coca-Cola HBC unveiled cardboard 'Lift Up' handle with DS Smith and Krones, eliminating 200 tonnes plastic annually in Austria

• DS Smith and Serele Super replaced 10 million plastic packages with sustainable corrugated cardboard punnets over 3 years

• Pladis and Coveris developed recyclable paper packaging for US confectionery, eliminating non-recyclable OPP/paper structures

• Ravenwood launched linerless apple packaging for major UK retailer, cutting plastic waste 90%

Smart & Intelligent Packaging:

• Esko and iO.TT formed partnership to advance intelligent packaging with traceability and anti-counterfeiting

• Packitoo launched AI-powered smart pricing assistant for UK packaging converters

• SIG and Hill-Smith won awards for Australia's first recycle-ready bag-in-box wine packaging

• Tetra Pak and García Carrión rolled out world-first paper-based barrier juice carton with 92% renewable content, 40% lower carbon footprint

Premium Packaging Solutions:

• Bilstein unveiled enhanced packaging for superior stability and anti-counterfeiting in automotive components

• Burgopak crafted efficient paperboard packaging for Salt! hydration supplements with proprietary Coupe pack

• Durham Box created premium festive gifting experience for Ringtons with laser-cut detailing

• James Cropper pioneers customer-co-created paper packaging for color precision and circularity

• Mondi and Polana Bikes unveiled reusable paper-based bike packaging with ProtectorBAG system

🏭 Mill Closures & Operational Adjustments

Permanent Closures:

• Domtar permanently closed Crofton Mill on Vancouver Island, impacting 350 workers ahead of Christmas

• UPM to end graphic paper production at Ettringen Mill from December 31, 2025, affecting 189 employees and reducing capacity by 270,000 tonnes/year

• Feldmuehle shuttered Uetersen paper mill after 120 years amid energy and market pressures in Germany

• White Birch Paper confirmed permanent closure of F.F. Soucy Mill in Rivière-du-Loup, Québec, affecting 175 workers with 265,000 tonnes capacity

• Cartiere del Polesine to shut Loreo recycled containerboard mill (PM1 and PM2) on December 20 in Italy

• DS Smith Lucca Mill shut down PM1 after 55 years producing 5M+ tonnes, making way for PM3 upgrade

• Cartiera Grillo in Voltri, Italy faces closure after 200 years due to foreign competition

• UPM halted label materials production at Nancy Mill in France

• Heyuan Guolong Printing & Packaging ceased operations due to severe losses in China

Temporary Shutdowns & Layoffs:

• Metsä Fibre concluded layoff talks covering four Finnish sawmills (up to 90 days per employee by end 2025)

• Samjung Pulp set to temporarily shut down Pyeongtaek mill amid import pressure in Korea

• Valmet concluded negotiations, retaining option for temporary layoffs in Packaging and Paper units (950+ employees involved)

• Metsä Board finalized change negotiations across all operating countries (2,500 employees globally)

• China's Nine Dragons, Lee & Man, and Shanying to cut 270,000 tonnes packaging paper via early 2026 shutdowns

• Woodland Pulp set to reopen at full capacity after monthlong downtime, bringing back 144 employees

Restarts & Recoveries:

• Metsä Group's Joutseno pulp mill to restart operations after upgrades; Rauma mill begins shutdown

• Karnaphuli Paper Mill resumes production after four-day shutdown in Bangladesh

• Abia recovers Star Paper Mill with N2.5B buyback, projecting 3,000-5,000 jobs

🔥 Operational Incidents

Fire Events:

• BiOrigin Specialty Products tissue mill fire in St. Catharines, Canada (overheated particles sparked blaze)

• Georgia-Pacific Hosford facility fire contained swiftly in Florida (December 3)

• Pactiv packaging facility fire in Macon, Georgia ruled accidental; no injuries

🤖 Technology & Digital Transformation

AI & Automation:

• Generative AI set to transform $1.2T global packaging market at Empack 2026

• Heidelberg Customer Portal accelerates digital transformation with 7,000+ users at 3,000+ companies, offering 15+ specialized apps

• JMC Paper Tech launched VR Experience Zone at Paperex 2025 for immersive mill exploration

• Esko forecasts agentic AI, smart packaging, and sustainability as key 2026 trends

• eProductivity Software secured SOC 2 Type 1 and ISO 27001:2022 certifications for global cloud security

Process & Quality Technologies:

• Valmet introduced next-generation IQ Web Monitoring System for enhanced process visibility

• ANDRITZ commissioned sludge drying plant at Eldorado Brasil, processing 22 tonnes dry solids/day

• ANDRITZ wins lime kiln plant order for Guangxi Botare Yuantrove's new pulp mill (380 t/d capacity)

• Kadant awarded fiber processing system for Giao Long Paper's PM3 in Vietnam

• Ahlstrom launched enhanced Flow2Save™ filtration media for HVAC efficiency

Green Energy & Decarbonization:

• ANDRITZ transforms biogenic CO2 from pulp emissions into valuable raw materials via Power-to-X solutions

• Elemental Clean Fuels plans 10MW green hydrogen plant at Kruger Kamloops Pulp Mill, replacing 16% natural gas

• Mercer Peace River Pulp and Svante commence CO₂ capture demonstration unit in Alberta

• Bracell starts operating 74-tonne electric trucks for low-carbon logistics in São Paulo

• Trombini conducts Brazil's first packaging transport using biometano-powered truck

• Ence Terra invests €1M+ to upgrade wood and biomass reception at Pontevedra and Navia biofactories

🌍 Regional Market Developments

India:

• Paperex 2025 targeted 32MT paper capacity by 2030 with sustainability push, 68% recycling rates

• SIG opened advanced aseptic carton plant in Ahmedabad, Gujarat

• Vipul Organics showcased comprehensive solutions at Paperex 2025

• Indian Paper Manufacturers Association elected Pawan Agarwal as new President

China:

• Shouguang Chenming Mill 8 delivered record November operational performance

• China Paper focuses on lean management to build competitiveness

• Shanxi Qiangwei Paper launches public consultation for 100,000 tpy waste wood APMP project

Brazil:

• Klabin concluded record expansion cycle; exports to China surge nearly tenfold in 5 months

• Klabin gathered sales team at Piracicaba II for 2026 strategy alignment

• Suzano announces significant pulp price hikes: +$120/tonne Europe/North America, +$20/tonne Asia

• Suzano cuts 2026 capex as major projects wind down (10.9B reais vs 13.3B in 2025)

• Suzano Mucuri wins reliability award at Tractian Maintenance Day

• Suzano Eucafluff achieves milestone with first fluff jumbo roll production

• Suzano embeds biodiversity at core with new Nature Strategy using IUCN STAR metric

Southeast Asia:

• Toba Pulp Lestari suspends mill operations after government flooding order in Indonesia

• Vina Kraft Paper named among top 100 sustainable enterprises in Vietnam

• Bank Mandiri inaugurates branch at OKI Pulp & Paper Mills in Indonesia

Europe:

• EU Council and Parliament agree on EUDR simplification and extended implementation timeline to December 30, 2026

• Navigator announces January price hike for uncoated woodfree grades (5-8%)

• Lecta launches GardaMatt Ice coated paper for premium publishing

• Koehler Paper's Creative Board earns Nordic Swan Ecolabel certification

North America:

• N.B. Power agrees to buy energy from J.D. Irving's Brighton Mountain wind project (200 MW)

• Newfoundland Hydro signs temporary power deal with Corner Brook Pulp and Paper

• AF&PA reports 10% month-on-month drop in US packaging papers shipments in November

• Pratt Industries opens 100% recycled fruit and vegetable box plant in Warner Robins, Georgia

👔 Leadership Changes

CEO Appointments:

• Graphic Packaging appointed Robbert Rietbroek as President and CEO effective January 1, 2026, succeeding Michael P. Doss

• Sylvamo appointed John Sims as CEO and David Petratis as Chairman effective January 1, 2026

• Kleannara announced 2026 executive appointments with Lee Dong-ryeol as sole CEO

• Lenzing AG CEO Rohit Aggarwal resigns effective January 31, 2026

• RYAM CEO De Lyle Bloomquist to retire by 2026 annual meeting

• Rottneros President and CEO Lennart Eberleh resigns, departure in H1 2026

Other Key Appointments:

• Zeus Group strengthened board with Brian O'Kelly and Paul Hogan as Non-Executive Directors

• Essity appointed Ilham Smaali as Chief Supply Chain Officer effective December 31, 2025

• Mativ named Scott Minder as new CFO effective January 1, 2026

• Cascades named Emmanuelle Migneault Chief Human Resources Officer, succeeding Maryse Fernet

• DS Smith named James Lomax MD for UK & Ireland Packaging after International Paper integration

• Metsä Group appointed Maria Mroué as Vice President of Communications and Brand

• James Cropper named Mike Gibson Head of Business Development

• Packsize named Philipp Venjakob Vice President of European Sales

💰 Financial & Market Updates

Dividends & Financial Actions:

• Graphic Packaging declared $0.11 quarterly dividend payable January 7, 2026

• Greif declared quarterly dividends: $0.56/share Class A, $0.83/share Class B payable January 1, 2026

• Amcor sets January 15 effective date for 1-for-5 reverse stock split

• Kemira completed share buyback program: 5M shares at EUR 19.23 average (total ~EUR 96M)

• Valmet secured €375M Schuldschein loan with 11 tranches, average 6-year term

Credit & Ratings:

• Fitch assigned Nordic Paper final B+ IDR with Positive Outlook

• Fitch keeps 2025 outlook for Latin American pulp sector at neutral, BEKP prices ~$600/tonne

• Sepanggar Paper Mills secured RM100M loan from AmBank Islamic for Sabah expansion

• DenizBank and Emirates NBD secured $400M club loan for Eren Holding's sustainable growth

Strategic Financing:

• N R Agarwal Industries advances Unit VI multilayer board plant with land acquisition at Dahej, Gujarat (~145 acres)

• Nfinite secured up to CAD 3.87M from NRC IRAP to scale high-barrier paper packaging technology

📊 Market Analysis & Industry Trends

Pricing Dynamics:

• Hokuetsu Corporation to raise specialty paper prices >10% from February 2026

• Suzano announces January price increases: +$120/tonne Europe/North America, +$20/tonne Asia

Production & Capacity:

• IBPO reports slight October dip but corrugated cardboard shipments hit second-highest historic volume in Brazil

• AF&PA reports November 2025 printing-writing paper shipments down 8% YTD

Trade & Regulatory:

• AF&PA urges EU to address EUDR trade barriers threatening $3.5B+ annual US forest products trade

• Paper industry challenges exemption of print products from EUDR

• McDonald's challenges EU reusable packaging mandate with fiber-based evidence

🎓 Research & Partnerships

Academic & Innovation Collaborations:

• Wits and Sappi extend climate resilience forestry partnership to 2028 with R4.3M investment

• Moorim P&P partners with startups to pioneer precision pulp mold technology through 2027

• Avery Dennison enters MoU with Indian Institute of Packaging for management development program

🌐 Events & Industry Initiatives

Major Exhibitions:

• Pulp & Paper Chronicle named Official Media Partner for Paperex 2025 (December 3-6, New Delhi)

• Pulp & Paper Chronicle announced as Official Media Partner for PackVision Expo 2026 (February 19-21, Pune)

• Siegwerk presented eco-friendly coating innovations at Paperex 2025

• Toscotec showcased tissue decarbonization tech at Paperex 2025

• AFT showcased advanced process solutions at Paperex 2025

• Trident Group spotlighted eco-smart paper at Paperex 2025

• Amcor to showcase sustainable solutions at Unified Wine and Grape Symposium 2026

• CONNECT 2026 packaging user conference registration opens (February 10-12, Las Vegas)

🏆 Awards & Recognition

Sustainability Awards:

• Hinojosa secured EcoVadis Gold Medal for fourth consecutive year with 80 points

• Greif recognized on America's Most Responsible Companies 2026 list

• WEIG Gruppe achieved Silver EcoVadis rating for sustainability

• Emtec Electronic celebrates 30 years of innovation and global partnerships

Industry Recognition:

• Casimir Kast rescued from insolvency through going-concern asset deal

• Cheng Loong turns innovation into company-wide movement, generating NT$146M annually, earns CTPM recognition

🔮 Strategic Outlook

Key Themes Shaping 2026:

1. Industry Consolidation Accelerates: The UPM-Sappi graphic paper JV signals a new phase of structural consolidation as companies combine operations to survive in declining segments while protecting cash-generative assets. Combined with nearly $3 billion in other announced M&A, the sector is actively reshaping through scale and specialization.

2. Aggressive Capacity Rebalancing: The industry is simultaneously pursuing mega-projects in growth markets (China, Brazil, Egypt, Southeast Asia) while rationalizing legacy capacity in mature markets (Europe, North America).

3. Plastic-to-Fiber Acceleration: The transition from plastic to fiber-based packaging is no longer experimental—it's becoming mainstream across dairy, produce, beverage, and consumer goods sectors.

4. Decarbonization Technologies: From carbon capture to green hydrogen to electric trucking, the sector is deploying real capital toward emissions reduction beyond incremental improvements.

5. Digital & AI Integration: Smart pricing, predictive maintenance, VR training, and AI-powered operations are shifting from pilot projects to production-scale deployment.

6. Regulatory Navigation: EUDR implementation, EPR schemes, and evolving packaging regulations are driving both compliance costs and innovation opportunities.

⚠️ Challenges Ahead

• Energy Cost Volatility: European mills particularly vulnerable to energy price spikes

• Labor Relations: Strikes and workforce reductions creating social tensions

• Import Competition: Asian producers pressuring traditional Western markets

• Raw Material Access: Forest-based supply chains under scrutiny from environmental and policy perspectives

• Demand Uncertainty: Graphic papers in structural decline; packaging growth rates moderating

• JV Integration Risks: The UPM-Sappi combination faces regulatory hurdles and integration complexity

🎯 Bottom Line

December 2025 reveals a pulp and paper industry in active transformation, not passive decline. The winners are those investing in:

• Scale & Consolidation (mega-projects, M&A, joint ventures)

• Technology (AI, automation, process innovation)

• Sustainability (verified carbon reduction, circular economy)

• Flexibility (fiber-based packaging innovation)

The UPM-Sappi JV represents a critical inflection point: legacy graphic paper assets are being combined for survival and efficiency, freeing both companies to focus capital on higher-growth segments. This pattern will likely repeat across other challenged product categories.

The fundamentals remain compelling: global demand for sustainable, fiber-based packaging continues growing, driven by regulatory mandates, brand commitments, and consumer preferences. Companies demonstrating genuine operational excellence and ESG leadership are attracting capital and winning contracts.

As we enter 2026, the sector faces headwinds—but also unprecedented opportunities for those positioned at the intersection of sustainability, technology, and market demand.