Pulp & Paper Chronicle: August 2026 Weekly Edition 2 – Industry Roundup

The pulp, paper and packaging industry continues to move through a period of major investment, operational restructuring, technological modernization and uneven market conditions. This week’s developments span new fibre packaging capacity, tissue and containerboard projects, mill upgrades, pricing disputes, mixed financial results, sustainability innovation, environmental action and regulatory preparation.

The newsletter’s key themes highlight strong investment activity, modernization and automation, market rationalization, pricing pressure, mixed earnings performance, sustainable fibre-based innovation, and increasing attention to regulation and environmental responsibility.

🏗️ Investments, Expansions & New Projects

Investment and modernization activity remained the largest category this week, with projects ranging from recycling and process optimization to major new pulp, tissue, packaging and containerboard capacity.

Bollegraaf upgrades Ecotri's paper sorting line in France. Bollegraaf has modernized the paper sorting line at Ecotri Atelier Fouesnantais by integrating two Opti-Sort units. The upgrade is intended to improve paper purity and recovery, increase sorting precision and reduce manual intervention. The system can handle lightweight materials at conveyor speeds of up to 6.5 metres per second, while four manual sorting positions have been removed from the operation.

Metsä Group invests EUR 25 million in Muoto fibre packaging. Metsä will establish a new Muoto™ fibre-based food packaging production line at its Äänekoski mill site in Finland. Scheduled to begin operations in 2028, the line will have capacity exceeding 100 million products annually. The packaging, made directly from wet wood pulp, is positioned as a fossil-free alternative to plastic for demanding food and serving applications. At the same time, Metsä has decided not to proceed with its planned Kuura textile fibre mill in Kemi, citing global overcapacity and limited willingness among customers to pay a premium for responsibly produced fibres.

PacifiCan supports Harmac Pacific with a $5.5 million investment. Through its Regional Tariff Response Initiative, PacifiCan is funding new equipment at Nanaimo Forest Products' Harmac Pacific pulp mill. The investment is aimed at improving production capacity, operational efficiency and cost competitiveness while supporting the mill's long-term resilience and its role as a major employer in the Vancouver Island forestry economy.

Zhihu Yuanchuang advances toward an October 2026 production start. The first phase of the 13.7 billion yuan household paper project in Guigang, Guangxi, is entering its final construction and commissioning stage. The integrated forestry, pulp and paper project is designed to produce 330,000 tonnes of bleached chemical wood pulp and 300,000 tonnes of household paper annually, supported by cogeneration, wastewater treatment and other infrastructure.

Sheets Unlimited deploys Valmet technology for corrugated board warp control. Valmet will supply a Valmet IQ Quality Control System designed to address moisture imbalance and reduce corrugated board warp. The delivery combines temperature, moisture, warp measurement and automatic moisturizing technologies with closed-loop controls to improve board quality, converting performance and production efficiency.

Kadant starts up a new green liquor system at Södra Cell Mörrum. Kadant Black Clawson and Kadant Noss have successfully commissioned a system comprising a green liquor clarifier and dregs precoat filter at Södra's Swedish mill. The installation is designed to improve chemical recovery, recausticizing efficiency and energy performance while reducing capital and operating costs.

Jinlong Pulp & Paper plans a 100,000-tonne capacity upgrade. The company will invest RMB 146.6991 million in a technological project intended to add 100,000 tonnes per year of chemical mechanical pulp capacity. Construction is planned from August 2026 through July 2028 and will focus on upgrading existing equipment, optimizing process flows and improving system stability without acquiring new land or constructing new buildings.

TNPL enters the tissue segment with a new 100 TPD facility. Tamil Nadu Newsprint and Papers Limited has inaugurated a 100-tonnes-per-day tissue paper production facility at Unit-II in Tiruchirappalli. Built with an investment of ₹350 crore, the project expands TNPL into value-added tissue products, with grades ranging from 13 GSM to 40 GSM to be marketed under the LUMEA brand.

MEPCO targets start-up milestones for containerboard and tissue expansion. MEPCO expects its PM5 containerboard project to begin commercial operations by the end of 2027, supported by approximately SAR 465 million in total project allocation. The new machine will add capacity and introduce a 70 GSM low-grammage product. Meanwhile, the company's TM6 tissue expansion is expected to start up by the end of 2026 and double tissue capacity from 60,000 to 120,000 tonnes.

Xuong Giang Paper starts up an ANDRITZ stock preparation system in Vietnam. The new system supports the company's TM16 tissue production line in Bac Giang Province. ANDRITZ supplied the complete stock preparation process, including hardwood and softwood kraft pulp refining lines and tissue trimmings processing. The PrimeRefine HC T technology is intended to improve fibre development, tissue softness, strength, fibre utilization and production efficiency.

🛑 Shutdowns, Closures & Curtailments

The week also brought further evidence of asset rationalization as producers respond to structural costs, efficiency requirements and changing market conditions.

Julius Schulte Söhne ends coreboard production in Düsseldorf. The company produced its final tonne of coreboard at the end of June, bringing 140 years of coreboard production at the Düsseldorf site to an end. Production pressure from the mill's inner-city location and challenging economic conditions contributed to the decision. Further processing activities are expected to continue temporarily until around mid-2027, while some coreboard-related production will continue elsewhere in the group.

Stora Enso considers permanent closure of the Veitsiluoto sawmill. The company plans to centralize pine timber sawing at other Northern Finland sites, particularly Oulu and Kalajoki. If implemented following change negotiations, Veitsiluoto would not restart after its temporary curtailment in October 2026. Approximately 60 employees are covered by the negotiations.

Mercer Peace River schedules a 10-day maintenance shutdown. The pulp mill will stop production from September 7 to 17, 2026, for inspections, repairs and equipment servicing. The shutdown is expected to reduce output by approximately 15,000 air-dried metric tonnes, with work focused on the digester, pulp machine and recovery boiler.

🤝 M&A, Partnerships & Joint Ventures

Faller Packaging acquires Paperpack in Greece. The acquisition expands Faller Packaging's European presence and strengthens its position in pharmaceutical and healthcare packaging. By combining Paperpack's established Greek market position with Faller's wider European network, the companies aim to create additional growth opportunities while maintaining a strong focus on quality, customer relationships and innovation.

📈 Price Changes & Market Pricing

Pricing remained a major source of tension, with producers seeking increases while customers and converters questioned whether market fundamentals justify them.

Chinese paper producers announce a second round of August price increases. Nine Dragons Paper, Shanying Paper and other producers have announced staged increases, with many hikes set at RMB 50 per tonne across corrugated paper, recycled kraft, linerboard, whiteboard and related grades. The moves reflect expectations of a seasonal recovery in packaging demand, although weak supply-demand conditions could limit full implementation.

AICC opposes the latest containerboard price increases. The association argues that recent increases announced by major North American producers are not supported by traditional supply-and-demand fundamentals. AICC cited weak box demand, relatively flat OCC prices and concerns about market concentration, warning that repeated increases could threaten the long-term competitiveness of independent converters.

📊 Financial Results & Market Performance

The latest financial results reveal a mixed industry picture: some companies are facing margin pressure and weaker earnings, while others are benefiting from stronger volumes, pricing, acquisitions and disciplined cash management.

Sylvamo reports a $11 million second-quarter net loss. Although net sales edged up to $806 million, adjusted EBITDA fell to $60 million from $82 million a year earlier. The company continues price increases, lean transformation initiatives and strategic investments, including modernization and paper machine optimization at its Eastover mill. Sylvamo expects stronger second-half earnings but continues to face higher energy, chemical and transportation costs.

CMPC's first-half profit declines sharply. The company reported net profit of US$33.5 million, compared with US$130.7 million in the first half of 2025, while revenue remained broadly stable at US$3.733 billion. Lower operating profit, finance costs and foreign exchange losses affected earnings, although operating cash flow increased to US$565 million and future investment commitments reached approximately US$855 million.

Arctic Paper sees efficiency measures offset some market pressure. Sales declined because of lower paper and pulp prices, but the company's net loss improved compared with the previous year. Paper sales volumes rose 4.1%, and efficiency initiatives are expected to generate around PLN 6 million in savings during 2026. The company continues investing in wastewater treatment, electric boiler capacity and wood-pellet production despite expectations of difficult market conditions.

Suzano delivers strong EBITDA and free cash flow. The company reported R$4.7 billion in adjusted EBITDA and R$3.3 billion in free cash flow during the second quarter of 2026. Higher pulp prices, strong sales volumes and cost discipline supported performance, while the company continued to manage currency, logistics and broader geopolitical risks.

West Coast Paper Mills reports strong Q1 FY27 growth. Consolidated revenue rose to ₹10,512.60 million, while net profit more than doubled to ₹1,418.44 million. The Paper and Paper Board segment remained the largest revenue contributor, while results also included contributions from subsidiaries including Andhra Paper and West Coast Opticable.

Amcor posts higher results following the Berry acquisition. Fourth-quarter net sales increased 26% to $6.4 billion, while full-year sales rose 57% to $23.5 billion. The Berry acquisition, acquired sales, cost pass-through and synergy benefits were major contributors to growth, although the company ended the year with net debt of $12.897 billion.

🚀 Products & Innovation

Innovation this week focused on sustainability, fibre substitution and improved manufacturing efficiency.

Domtar and Toshiba qualify phenol-free receipt paper. Domtar's Clarion™ POS 48S phenol-free thermal paper has been qualified for Toshiba's TCx® Print S10 printer following print quality and lifecycle testing. The collaboration expands validated options for retailers seeking BPA-free, BPS-free and phenol-free receipt solutions while maintaining reliability, print quality and durability.

Mondi and FIXIT GRUPPE streamline paper bag packaging. The companies standardized packaging for more than 100 products across European markets, reducing associated greenhouse gas emissions by 135 tonnes of CO₂ annually compared with the previous year. The project simplified a fragmented portfolio while maintaining product protection, machine compatibility and recyclability considerations.

KAMA sets a new folding boxboard production record. The Russian cardboard and paper mill produced more than 22,100 tonnes of domestically produced FBB in July 2026, surpassing its previous record. Improved production efficiency following a major shutdown, reduced product transitions and stronger order planning contributed to the result, with Overall Equipment Effectiveness reaching a two-year high of 93.23%.

👥 Leadership & Corporate Updates

Kimberly-Clark appoints Suzana Blades as Senior Vice President and General Counsel. Effective September 1, 2026, Blades will join the company's Executive Leadership Team and report to the Chief Strategy, Business Development and Administrative Officer. She has also been named to the leadership team planned to take effect following Kimberly-Clark's pending acquisition of Kenvue.

🔥 Incidents, Safety & Environmental Events

Environmental and worker safety remained critical priorities.

EPA begins chemical removal at the dormant Cosmo Specialty Fibers mill. More than 750,000 gallons of chemicals and other materials remain at the non-operational facility in Cosmopolis, where aging storage and treatment systems have deteriorated. EPA crews are removing chemicals, neutralizing acids and bases where appropriate, and transporting hazardous materials to approved disposal facilities in response to risks to the surrounding community and waterways.

Worker hospitalized after an electrical incident at Sappi's Somerset Mill. A worker was injured while working on machinery at the Skowhegan mill and received immediate care from the site's emergency response team. The worker was reported to be in stable condition after hospital treatment and transfer to Maine Medical Center in Portland.

🏛️ Policy, Regulation & Trade

Holmen prepares customers for PPWR implementation. Holmen is helping customers prepare for the EU Packaging and Packaging Waste Regulation, which will introduce requirements gradually between 2026 and 2035. The first requirements begin on August 12, 2026, including restrictions on PFAS in food-contact packaging. Holmen is positioning its fibre-based packaging products as options aligned with sustainability and circularity goals and is providing compliance-related documentation and support.

🎤 Industry Events & Conferences

LatamCORR Brasil 2026 gains momentum. Leading suppliers from Brazil and abroad have confirmed participation in the event, scheduled for November 12, 2026, at the Royal Palm Hall in Campinas. The one-day gathering will bring together corrugated packaging manufacturers, converters, suppliers and decision-makers for technical presentations, networking and pre-scheduled business meetings, with opportunities for suppliers to connect directly with the Brazilian and wider Latin American corrugated packaging market.

Industry Outlook

Taken together, this week's stories show an industry moving in two directions at once. Companies are continuing to invest heavily in capacity, automation, process efficiency and higher-value fibre-based products, while simultaneously closing or restructuring less competitive assets. Pricing remains uncertain, financial performance is highly uneven and cost discipline continues to be essential.

At the same time, sustainability and regulation are becoming increasingly integrated into investment decisions. From fibre-based food packaging and phenol-free receipt paper to standardized paper bags and PPWR readiness, companies are adapting their products and operations to changing customer and regulatory expectations.

The central message from this week's developments is clear: competitiveness in the pulp, paper and packaging industry increasingly depends on the ability to combine efficient operations, targeted investment, technological innovation, financial discipline and responsible environmental management.