Pulp & Paper Chronicle: August 2026 Weekly Edition 4 – Industry Roundup

The latest edition of Pulp & Paper Chronicle highlights an industry balancing two contrasting forces: significant investment in capacity, technology and sustainable production on one side, and growing pressure from tariffs, market volatility, shutdowns and regulatory scrutiny on the other.

Across 11 categories and 27 stories, the week's developments show that pulp, paper, packaging and fiber-based materials companies are continuing to modernize while adapting to a more uncertain global operating environment.

🏗️ Investments, Expansions & New Projects

Investment remained one of the strongest themes of the week.

Essity is investing £2.85 million to upgrade the remaining paper machine at its Oakenholt mill near Flint. The project includes hydrogen-ready burners, a new hood and heat-exchange systems. The company expects the modernization to cut gas consumption by 11% and reduce carbon emissions by approximately 925 tonnes annually. The burners will initially operate with a 20% hydrogen blend and could potentially be converted to 100% hydrogen following further modifications.

In the UK packaging sector, Saica Pack received approval for a 14,000-square-metre warehouse expansion near Thrapston despite 40 public objections. The company says consolidating finished-goods storage under one roof will improve efficiency and reduce vehicle movements.

In China, Guangxi Qingyun Paper Industry started up its TM5 tissue machine, adding 16,000 tonnes per year of capacity and bringing its total tissue production capacity to an expected 80,000 tonnes annually.

Nanning Sun Paper once again selected ANDRITZ for major equipment and process technology for its expanding Guangxi complex. The project includes a third pulp line and PM21 paper machine, with start-up planned for mid-2027. The wider industrial park is planned for annual production capacity of 5.25 million tonnes.

Modernization is also taking place at existing mills. Jeonju Paper Corporation selected Valmet to rebuild the press and predryer sections of PM5 in South Korea, targeting lower drying energy consumption, improved runnability and greater reliability.

Meanwhile, Kadant will supply an OCC system for Sun Paper's PM21 project, with a planned capacity of 1,600 BDMT per day and permanent-magnet motor technology designed for energy-efficient operation.

In India, Kuantum Papers restarted its upgraded PM3 after a major rebuild incorporating a top former, film press, improved automation and enhanced drying capability. The modernization is intended to increase throughput and enable future expansion into higher-value writing, printing and specialty grades.

Canada is also supporting mill transformation. Mercer International's Peace River Mill received C$20 million in government support for productivity improvements and modernization, including preparations for expanded bioenergy production and carbon capture and storage.

Finally, Stora Enso's Varkaus Mill will receive a recovery-boiler modification from Valmet, including a new secondary superheater. A three-year cooperation agreement will also cover process monitoring and operator training, supporting reliability and long-term performance.

Industry takeaway: investment is increasingly about more than adding tonnes. Energy efficiency, automation, reliability, hydrogen readiness, carbon capture and higher-value products are becoming integral to mill investment decisions.

🛑 Shutdowns, Closures & Curtailments

The investment story is accompanied by a difficult operating environment for some producers.

Nine Dragons Paper plans maintenance shutdowns affecting more than 20 paper machines across several Chinese production bases during the October 1–7 National Day holiday. Planned outages range from three to seven days and cover kraft, corrugated, recycled and whiteboard machines.

In Canada, Rayonier Advanced Materials (RYAM) plans an indefinite temporary shutdown of its Témiscaming complex in Quebec beginning September 15, affecting approximately 400 unionized workers. RYAM cited U.S. tariffs and long-standing challenges in the pulp and paper sector as factors behind the decision.

Japan's Nippon Paper Yatsushiro mill remains suspended following earthquake damage, including the collapse of a chimney and damage to electrical systems and wood-chip conveyors. The mill is an important regional newsprint producer, accounting for approximately 9% of Japan's domestic newsprint production in 2025.

🤝 M&A, Partnerships & Joint Ventures

Industry consolidation continues to reshape the European packaging and graphic paper markets.

Saica Group completed its acquisition of Thimm Group, bringing Thimm's operations in Germany, Poland, the Czech Republic and Romania—employing nearly 2,500 people—into the Saica Group. The plants will remain operational, strengthening Saica's presence across Central and Eastern Europe.

At the same time, the proposed UPM-Sappi graphic paper joint venture faces greater regulatory uncertainty. The European Commission has issued a Statement of Objections concerning the €1.42 billion transaction, expressing concerns about potential price increases and lower quality in coated mechanical and coated woodfree paper markets.

📈 Price Changes & Market Pricing

Sonoco announced a €60-per-tonne price increase for uncoated recycled paperboard grades sold in EMEA, effective for shipments from September 15, 2026.

The company attributed the increase to inflation, geopolitical constraints, energy and fuel costs, and higher operating and transportation expenses.

The announcement reflects the broader pressure highlighted throughout the newsletter: companies are increasingly having to balance volatile input costs against customer pricing and competitive pressures.

📊 Financial Results & Market Performance

Grigeo Group reported a mixed first half of 2026.

Revenue increased 33% to €155.2 million, compared with €116.7 million in the first half of 2025. However, EBITDA fell 10% to €14.2 million, while profit before tax declined 27% to €7.1 million.

The numbers illustrate an important industry dynamic: stronger sales do not necessarily translate into stronger profitability when costs and market pressures remain elevated.

🌱 Sustainability & Circular Economy

Digitalization is beginning to enter the recyclable-materials trading market.

Inacsys, an Ontario-based B2B platform, has opened founding access ahead of its planned global launch on September 5. Its platform is designed to connect buyers and sellers of recyclable paper and plastic materials using structured material classifications and an AI copilot called Kiwi.

The company aims to replace fragmented processes involving phone calls, spreadsheets and broker networks with digital infrastructure supporting reuse, upcycling and recycling.

🚀 Products & Innovation

Fiber-based packaging innovation continues to expand into applications traditionally dominated by plastic.

Visy launched an automated labelling system for its Enviropunnet™, allowing fresh produce such as apples, pears, stone fruit and tomatoes to be packaged without plastic film or wrap. The cardboard solution is designed to be kerbside recyclable after use.

Ahlstrom commercially released Grease-Gard® PLUS and Grease-Gard® PRO for the North American food-service market. The new papers are designed to provide grease resistance while supporting the transition toward paper-based food-service packaging.

Meanwhile, Papela has joined the Blister Pack Collective as its first converter partner. The initiative is working on dry-molded fiber blister packaging for nutraceutical, supplement and healthcare applications, with the broader objective of creating commercially viable fiber alternatives to conventional blister formats.

Industry takeaway: the move away from conventional plastics is increasingly shifting from concept development toward practical converting, labelling and commercial-scale applications.

👥 Leadership & Corporate Updates

Leadership changes are also taking place across major industry players.

Valmet confirmed that Pia Aaltonen-Forsell will become CFO and join the company's Executive Leadership Team on November 1, 2026. Niklas Nylund will serve as interim CFO during October following the departure of Katri Hokkanen.

MM Group is expanding its Management Board with Andreas Koppitz and Alexander Loimayr, effective September 1. The appointments expand the board to five members and align leadership responsibilities with the group's growing packaging and paper operations.

🔥 Incidents, Safety & Environmental Events

A major environmental and safety development involves Nippon Dynawave Packaging in Washington.

The Washington Department of Ecology issued an administrative notice identifying 35 alleged environmental violations following the May 26 collapse of a white-liquor storage tank. Approximately 900,000 gallons of highly caustic white liquor were released, and the incident resulted in 11 employee deaths.

According to the department, some material reached storm drains and the wastewater treatment system, while larger volumes entered a nearby ditch and contributed to fish deaths. The agency stressed that the notice represents an initial determination and is not itself a final enforcement action.

🏛️ Policy, Regulation & Trade

Trade policy is emerging as one of the most significant risks for North American pulp and paper producers.

Canada announced planned counter-tariffs targeting U.S. goods, with pulp and paper among the affected sectors. The measures are scheduled to take effect September 8, 2026, with rates ranging from 15% to 50% depending on the product. Products identified include dissolving-grade chemical wood pulp, kraft paper, coated paper and tissue stock.

The UPM-Sappi joint venture is also facing European regulatory scrutiny, with UPM confirming receipt of the European Commission's Statement of Objections. UPM maintains that the proposed joint venture is necessary to strengthen supply continuity and resilience in the European graphic paper market.

Canada has additionally imposed retaliatory tariffs on $20 billion worth of U.S. goods following the escalation of the broader U.S.-Canada trade dispute.

Against this backdrop, Vancouver Island's pulp sector is looking toward diversification and alternative export markets. Harmac Pacific is focusing on Asian markets including Japan, South Korea, China, Indonesia and Australia, while also generating electricity from surplus sawdust and bark.

🏆 Awards, Certifications & Recognition

Seyfert's Reichenbach plant, part of PALM Packaging, received the German Packaging Award 2026 in the Point of Sale category for a corrugated-board display developed for Haleon.

The display uses a simplified construction with fewer components and a common structural basis for different product versions, helping reduce component variety while simplifying storage, assembly and setup.

What This Week's News Means for the Industry

The August Week 4 roundup points to a pulp and paper industry undergoing structural transformation rather than simply cyclical change.

Three broad developments stand out:

First, mills are investing in efficiency and resilience. Hydrogen-ready burners, recovery-boiler upgrades, machine rebuilds, automation, OCC systems and energy-efficient technologies show that modernization is increasingly tied to both competitiveness and sustainability.

Second, fiber-based packaging is moving closer to mainstream commercial adoption. From plastic-free fresh-produce packaging to grease-resistant food-service papers and dry-molded fiber blister packs, companies are developing solutions aimed at replacing specific plastic applications.

Third, external pressures are becoming impossible to ignore. Tariffs, inflation, energy costs, regulatory intervention, natural disasters and mill shutdowns are affecting production decisions and profitability across multiple regions.

The result is a sector simultaneously building for the future and defending its current operating base. The companies best positioned for the next phase of the industry are likely to be those that can combine efficient production, resilient supply chains, sustainable technologies and flexible product portfolios.