Paper on the Rise Amid Packaging Supply Instability Klean Nara Strengthens Supply Capabilities Centered on Paper Packaging

Klean Nara, a lifestyle innovation solutions platform company, announced on the 30th that it is strengthening a stable supply system by enhancing its production and supply capabilities for paper-based packaging materials amid growing global supply chain uncertainty.

Recently, rising international oil prices and shipping costs have increased price volatility and supply instability for petrochemical-based packaging materials such as vinyl. As a result, paper-based packaging materials are emerging as viable alternatives. In response to this trend, Klean Nara is expanding its production capacity for paper-based packaging materials.

In particular, Klean Nara recycles approximately 300,000 tons of paper resources (waste paper) annually into cardboard and has established a circular raw material structure, with more than 98.5% of its product raw materials derived from recycled paper. Based on this system, the company is strengthening the domestic paper resource circulation ecosystem, reducing dependence on imported raw materials, and structurally mitigating supply chain risks.

In terms of production processes, stability is also being enhanced through a transition in energy structure. Klean Nara has completed the phase-out of coal and shifted to energy generation through incineration facilities that utilize waste synthetic resources—such as vinyl and waste plastics generated during paper processing—as fuel. By using internally generated waste as an energy source, the company has reduced reliance on external fuels and established an in-house system to supply the steam required for production processes.

Furthermore, by progressively upgrading energy infrastructure—including solid fuel facilities and waste recycling systems—and improving internal energy productivity, Klean Nara is achieving both production stability and cost efficiency.

In addition, Klean Nara is investing approximately 89.3 billion won in environmental improvements and energy-saving facilities from 2024 to 2026. The company aims to reduce electricity consumption by around 12% through the operation of in-process energy recovery systems and Energy Storage Systems (ESS). It is also optimizing manufacturing costs through production relocation and adjustments to work systems.

In response to the ongoing shortage of plastic packaging materials affecting industries globally, Klean Nara is expanding the production and supply of paper-based packaging solutions to help close the domestic supply gap and ensure stability in packaging material availability.