Pulp & Paper Chronicle: August 2026 Weekly Edition 3– Industry Roundup

The pulp and paper industry enters the final stretch of August with a mixed but revealing picture: investment continues to flow into packaging, automation and energy infrastructure, while weak pulp markets, high costs and supply challenges are forcing difficult operational decisions. Across the week's developments, one message is clear—companies are restructuring their operations while continuing to invest in the markets and technologies they believe will drive future growth.

🏗️ Investments, Expansions & New Projects

Cirkla brings molded fiber meat packaging production to the United States

Cirkla announced plans to establish a manufacturing facility in Gainesville, Georgia, with production scheduled to begin in the first quarter of 2027. The company describes the site as America's first facility dedicated to scaling molded fiber meat packaging, responding to growing demand from meat brands, protein processors and retailers for packaging that reduces plastic use while maintaining the performance required for demanding food applications.

The investment also reflects a broader effort to localize supply chains. Cirkla, which has already validated its fiber tray technology through manufacturing operations in India, is positioning the new U.S. facility to support larger national rollouts closer to its American customers.

Perlen develops a 10 MW battery storage project

Swiss paper producer Perlen is moving beyond traditional mill infrastructure with a planned 10 MW/20 MWh Battery Energy Storage System at the Perlen Papier site. The project, being developed through the BESS Perlen AG joint venture, is expected to be commissioned by the end of 2026.

The battery system will allow electricity to be stored and used to participate in energy markets, initially focusing on ancillary services. The investment illustrates how industrial companies are increasingly viewing energy infrastructure not simply as an operating cost, but as a potential source of value and an important component of long-term competitiveness.

SCGP expands corrugated packaging capacity in Vietnam

SCGP is investing approximately THB 748 million to expand the operations of Vina Kraft Paper Co. in Ho Chi Minh City. The project will add 26,800 tonnes per year of high-quality corrugated packaging capacity and incorporate advanced automation technologies to improve production efficiency.

With Vietnamese paper packaging demand expected to grow by approximately 7% annually, the expansion is part of SCGP's strategy to strengthen its integrated manufacturing and service network across ASEAN. Commercial operations for the expanded capacity are expected to begin by September 2027.

🔄 Restarts, Rebuilds & Modernization

Nippon Dynawave takes first steps toward restarting Longview

Nippon Dynawave Packaging has begun dismantling tanks and preparing temporary storage as part of the process toward restarting its Longview mill following the May 26 rupture of a white liquor storage tank. The initial work includes removing three out-of-service tanks and staging temporary tanks for the white and black liquor required for an eventual restart.

While the company has not announced a timetable for fully resuming operations, the work represents an important early stage in restoring a mill that produces pulp and packaging paper for food containers and other products.

FOLBB cancels planned Eerbeek mill restart

In contrast, FOLBB Group has cancelled the planned restart of its Eerbeek mill and immediately suspended all activities at the site. The future of the group's Baiersbronn mill also remains unresolved as trustees continue to assess possible options.

The announcement highlights the uncertainty facing employees, customers, suppliers and local communities when industrial restructuring leaves the future of established production sites unclear.

🛑 Shutdowns, Closures & Curtailments

Quesnel River Pulp curtails operations

Quesnel River Pulp has announced a temporary curtailment expected to last until at least November, putting 90 jobs at risk. The company warned that the shutdown could become permanent if market conditions fail to improve.

The development underscores the pressure on British Columbia's forestry sector, where mill economics and policy debates are increasingly intertwined with the economic future of forestry-dependent communities.

Domtar indefinitely idles Howe Sound and Bayview Fibre operations

Domtar has indefinitely idled operations at the Howe Sound mill and the Bayview Fibre chipping facility in Port Mellon, affecting approximately 400 employees. The decision is expected to remove around 380,000 metric tonnes of northern bleached softwood kraft pulp from the market annually.

The company cited reduced Asian demand, sustained weakness in global pulp prices and declining availability of affordable domestic fibre as key factors behind the decision, despite substantial capital investment in the operations since 2010.

Chinese mills plan holiday shutdowns across 20 paper machines

Several Chinese paper producers are planning temporary shutdowns involving 20 paper machines during the Mid-Autumn Festival and National Day period from September 24 to October 7. The stoppages, generally lasting three to seven days, will affect a range of paper and board grades.

The coordinated downtime is intended to support maintenance, manage costs and help producers respond to market conditions and rising raw-material expenses, while giving customers time to adjust production plans.

🤝 M&A, Partnerships & Joint Ventures

MM Board & Paper moves to acquire the R.D.M. Arnsberg mill

MM Board & Paper has signed an agreement to acquire the operating business of the R.D.M. Arnsberg recycled-fibre cartonboard mill in Germany. The mill has annual capacity of approximately 230,000 tonnes and specializes particularly in liner products.

MM expects the acquisition to generate industrial synergies, improve production flexibility and strengthen security of supply. All employees at the Arnsberg mill are expected to transfer to MM.

HarperLove acquires ChromaScape's corrugated products business

HarperLove has acquired the corrugated products business of ChromaScape, expanding its position in adhesives, performance additives and technical solutions for corrugated packaging manufacturers.

The acquired portfolio includes specialty products used in corrugated box production, including starch-batch alternatives, performance-enhancing additives and wet-strength resins. The transaction broadens HarperLove's customer relationships and regional reach in the corrugated packaging sector.

Essity strengthens its position in Brazil

Essity has agreed to acquire Kenvue's feminine care business in Brazil for USD 284 million. The transaction includes the Carefree, Sempre Livre and o.b. brands, along with related manufacturing equipment.

While extending beyond the traditional paper sector, the acquisition reflects the strategic importance of fibre-based and hygiene-related consumer categories and strengthens Essity's position in one of Latin America's largest growth markets.

📈 Price Changes & Market Pricing

Hubei cardboard producers pass higher costs through the supply chain

Major cardboard manufacturers in China's Hubei province increased prices by 5% on August 14 following repeated price increases by domestic paper mills. Several producers also withdrew earlier promotional offers or adjusted discounts.

The move demonstrates how frequent, even relatively modest, increases in upstream paper prices can accumulate into significant cost pressure for downstream converters and ultimately drive coordinated pricing changes across the packaging supply chain.

China's imported softwood pulp market remains under pressure

China's imported bleached softwood kraft market faced continued pressure during the week ending August 14 as buyers favored lower-priced domestic resale cargoes. Imported Northern European and Canadian NBSK prices remained relatively stable, while domestic resale prices fell substantially lower.

South American bleached hardwood kraft pulp showed greater resilience, with major producers maintaining quotations around $560–$570 per tonne. The contrast highlights uneven market conditions between pulp grades as demand, futures markets and inventory dynamics continue to influence pricing.

📊 Financial Results & Market Performance

Hansol Paper posts sharp profit growth

Hansol Paper reported a 163% year-on-year increase in second-quarter operating profit to ₩50.8 billion, while net profit rose 253%. Revenue increased 4.9% to ₩592.7 billion.

The company attributed the improvement to stronger sales of white duplex board used in cosmetics and food packaging, higher thermal paper prices and tariff-related benefits. The results demonstrate how product mix and exposure to resilient packaging segments can offset broader market pressures.

Mayr-Melnhof Karton raises its transformation target

Mayr-Melnhof Karton reported resilient first-half earnings despite lower sales and continued pressure on prices in its Board & Paper division. The company's Fit-For-Future programme contributed EUR 105 million during the first half, helping mitigate the impact of lower selling prices.

MM subsequently raised its expected aggregate benefit from the programme by 2027 to more than EUR 330 million, signaling a continued focus on restructuring, productivity and long-term efficiency.

MEPCO reports strong profitability gains

Middle East Paper Company reported Q2 revenue growth of 8%, supported primarily by higher containerboard and industrial paper sales. Gross profit increased 53%, while net income attributable to equity holders rose 193% year-on-year.

The results were supported by higher sales, an improved product mix and continued operational efficiency, reinforcing the importance of value-added industrial and packaging grades in the current market environment.

🚀 Products & Innovation

Zomato launches PackSwitch for sustainable packaging adoption

Zomato has launched PackSwitch, an interactive platform designed to help restaurants identify sustainable packaging solutions based on the dishes they serve. The platform guides users through material options and suppliers while providing information on performance, commercial viability and environmental impact.

With access to more than 100 verified suppliers across India, PackSwitch aims to address practical barriers to replacing plastic, including cost, functionality, availability and disposal. It builds on Zomato's Plastic-Free Future programme, which had recognized more than 10,000 restaurants using alternatives to conventional plastic packaging.

👥 Leadership & Corporate Updates

UPM advances the planned WISA demerger

The Finnish Financial Supervisory Authority has approved a supplement to the prospectus relating to UPM-Kymmene's planned partial demerger and the proposed listing of WISA Group shares on Nasdaq Helsinki.

The supplement includes updated financial information, guidance and technical amendments, while UPM's Board proposed that an Extraordinary General Meeting on August 31 approve the demerger plan.

Sonoco appoints Francesco Giannolo to lead Consumer Packaging EMEA

Sonoco has named Francesco Giannolo Vice President and General Manager of its Consumer Packaging business in EMEA. Giannolo, who joined the company in 2019, brings experience from commercial and general management roles within Sonoco's consumer packaging operations.

The appointment is intended to support the company's focus on innovation, productivity and customer service as it aligns its global consumer packaging businesses.

Valmet appoints Max Luedtke to its Executive Leadership Team

Valmet has appointed Max Luedtke as Executive Vice President of its Pulp, Energy and Circularity business area, effective September 1, 2026. Luedtke joins from ABB and brings more than 20 years of international leadership experience in process industries.

His background in automation, electrification, digitalization and business transformation aligns closely with the technological changes reshaping the pulp, energy and circular economy sectors.

⚙️ Operations & Supply Chain

U.S. printing-writing paper shipments decline

AF&PA's July 2026 Printing-Writing Monthly Report showed that total U.S. printing-writing paper shipments fell 9% compared with July 2025, while inventories increased 3% from June. All three major categories—uncoated free sheet, coated free sheet and mechanical paper—recorded year-on-year shipment declines.

The figures point to continued weakness in traditional printing and writing paper markets, with coated free sheet posting the smallest decline at 6%.

Packaging papers show more resilient demand

The July AF&PA Packaging Papers Monthly Report presented a more positive picture. Total packaging papers and specialty packaging shipments increased 1% year-on-year in July and were up 5% for the first seven months of 2026.

Although bleached food wrapping shipments declined in July, higher operating rates and stronger year-to-date performance suggest that packaging continues to offer greater resilience than many traditional graphic paper markets.

Japanese producers arrange alternative newsprint supplies after earthquake disruption

Oji Holdings, Daio Paper and Chuetsu Pulp & Paper are arranging alternative newsprint supplies following the suspension of Nippon Paper Industries' Yatsushiro Mill after the July 2026 Kumamoto Earthquake.

Because Yatsushiro is Kyushu's only newsprint production base, producers are coordinating production and logistics from other facilities to maintain supplies across western Japan. The response demonstrates the importance of flexible supply networks when natural disasters disrupt critical industrial infrastructure.

🔥 Incidents, Safety & Environmental Events

Fire damages Hakkani Paper and Board Mills in Bangladesh

A fire at Hakkani Paper and Board Mills in Boalkhali, Chattogram, damaged machinery, electrical cables and waste paper, with estimated losses of Tk20 million. Firefighting teams brought the blaze under control after nearly three hours, preventing it from spreading further through the factory.

Ogun authorities seal Dahua Paper over environmental allegations

The Ogun State Waste Management Authority sealed Dahua Paper Company Ltd. over allegations involving an unauthorized dumpsite, open burning of waste and the movement of waste toward a nearby river. The enforcement action followed monitoring and investigation by the state authority, which also seized two trucks allegedly used for waste disposal.

The case underscores the growing importance of environmental compliance and waste management in maintaining the social and regulatory license to operate.

Firefighting continues at Subam Papers' Tirunelveli facility

A fire at Subam Papers near Tirunelveli, Tamil Nadu, affected compressed blocks of waste paper and discarded cardboard. The large volume of stored material complicated firefighting efforts, although crews were able to bring the spread of the blaze under control while work continued to fully extinguish it.

The incident highlights the particular fire risks associated with storing large volumes of recovered fibre and waste paper, a critical raw material for many paper and board producers.

Stora Enso responds to tall oil spill and fire in Imatra

A storage tank ruptured and caught fire at Stora Enso's Kaukopää industrial site in Imatra, Finland, on August 18, spilling approximately 50 cubic metres of tall oil. Some of the material reached nearby Lake Saimaa through a stormwater drain.

The fire was brought under control after more than two hours, with no injuries reported. Emergency teams deployed containment booms while Stora Enso began recovery operations to remove the spilled substance from the water.

🏆 Awards, Certifications & Recognition

Burgo Ardennes earns Lean & Green certification

Burgo Ardennes has earned the Lean & Green label, a European programme focused on reducing CO₂ emissions from logistics through measurable targets and structured improvement plans.

The company's action plan uses 2022 as its reference year and targets a 12.1% reduction in CO₂e emissions by 2027 within the assessed logistics scope. The recognition reflects the industry's increasing focus on measurable emissions reductions not only in manufacturing, but throughout transportation and supply-chain operations.

The Bigger Picture: An Industry in Transition

This week's developments reveal an industry operating on two tracks. On one hand, companies are investing in molded fiber, corrugated packaging, automation, battery storage and sustainable solutions. On the other, weak pulp demand, pricing pressure, fibre shortages and changing market conditions are driving mill curtailments, indefinite idlings and restructuring.

Packaging remains a central source of growth, while efficiency and operational transformation are becoming essential to competitiveness. At the same time, fires, environmental incidents and supply disruptions demonstrate that resilience and risk management remain fundamental business priorities. Together, the stories from this week's Pulp & Paper Chronicle show an industry that is not standing still: it is selectively investing in its future while adapting rapidly to the economic and operational realities of the present.