The global pulp, paper, and packaging industry continued to demonstrate resilience during the second week of July 2026, with companies accelerating investments in capacity expansion, automation, sustainability, and portfolio transformation despite ongoing market challenges. Businesses across the value chain announced major capital projects, mill modernization initiatives, strategic partnerships, and product innovations aimed at improving operational efficiency and meeting the growing demand for sustainable packaging solutions.

During the week, the industry also witnessed significant restructuring activities, including mill closures, corporate spin-offs, financial updates, and regulatory developments. Sustainability remained a central theme, with companies strengthening climate partnerships, investing in renewable energy, improving resource efficiency, and responding to evolving environmental policies. At the same time, several manufacturers reported mixed financial performance, reflecting persistent pressure from higher operating costs, weaker pulp markets, and changing customer demand.

This report presents a concise overview of all major developments across the industry's key segments, providing decision-makers with a quick reference to the week's most important announcements and emerging trends. The publication highlights developments in investments, operational changes, mergers and acquisitions, financial performance, sustainability initiatives, product innovation, leadership updates, safety incidents, and industry events.

Industry News Summary

1. Investments, Expansions & New Projects

• EFI Group – Plans to double vegetable pulp packaging capacity to 100 million units annually by 2028, strengthening its export-focused packaging business.

• Hoffmaster – Expanding its Wisconsin manufacturing facility with an 86,000 sq. ft. addition that will nearly double production capacity and create over 100 new jobs.

• DS Smith & ANDRITZ – Successfully commissioned Europe's largest FibreFlow drum pulper to enhance recycled packaging paper production efficiency.

• Cumberland Packaging – Selected Amtech's ERP platform to digitally streamline manufacturing, inventory, and delivery operations.

• Lenzing AG – Awarded ANDRITZ a contract for a new debarking and chipping line to improve dissolving pulp production efficiency.

• Sofidel & WWF Italy – Renewed their long-standing sustainability partnership through 2028, focusing on climate action and responsible sourcing.

• Kruger – Announced the C$700 million Project Tuckamore to modernize forestry operations, paper production, and renewable energy assets.

• Ence – Completed €48 million modernization and energy-efficiency upgrades at its Navia biofactory to improve competitiveness and biomass utilization.

• Hyogo Pulp Industries – Placed a repeat order with ANDRITZ to expand production while improving water efficiency.

• Guangxi Sun Paper – Unveiled plans for an 800,000-ton-per-year bleached chemical and fluff pulp project in Guangxi.

• Palm – Will convert its UK newsprint mill to produce recycled corrugated case material, aligning capacity with changing market demand.

2. Shutdowns, Closures & Curtailments

• Canfor – Will permanently close the Northwood Pulp Mill in British Columbia, impacting approximately 300 employees.

• Kondopoga Pulp & Paper Mill – Successfully completed its annual four-day maintenance shutdown with over 440 equipment improvement activities.

3. M&A, Partnerships & Joint Ventures

• Coastal Container – Acquired the former Howard Miller manufacturing facility to expand production and warehousing capacity.

• UPM – Advanced the planned spin-off of its plywood business after regulatory approval of the WISA demerger prospectus.

4. Financial Results & Market Performance

• Duni Group – Reported lower Q2 profitability due to logistics disruptions, while food packaging remained a growth driver.

• Norske Skog – Achieved positive packaging EBITDA and record containerboard deliveries despite weak publication paper markets.

• Essity – Delivered mixed quarterly results as healthcare and hygiene businesses offset weakness in consumer tissue.

• ABB – Posted strong Q2 growth supported by electrification and automation despite softer pulp and paper demand.

• International Paper – Declared a quarterly dividend of $0.4625 per share.

• Sonoco – Announced a quarterly dividend of $0.54 per share, extending its long-standing dividend history.

• Celulosa Argentina – Continued its financial restructuring following an extension of bankruptcy proceedings.

• Billerud – Reported sequential profitability improvement driven by stronger North American performance and cost efficiencies.

• Kemira – Reported weaker first-half earnings while maintaining its full-year financial outlook.

• Södra – Recorded an operating loss as weak market demand and high raw material costs continued to pressure earnings.

5. Sustainability & Circular Economy

• Cepi – Warned that proposed revisions to the EU Emissions Trading System could discourage future decarbonization investments across Europe's pulp and paper industry.

6. Products & Innovation

• Ahlstrom – Introduced MaxLiner™ release paper in Brazil to expand its pressure-sensitive adhesive labeling portfolio.

• Graphic Packaging International – Expanded its recycled paperboard portfolio with the launch of PaceSetter Ridgeline™.

• MoistTech – Showcased advanced infrared moisture measurement technology to improve paper manufacturing quality.

• Voith – Introduced the MegaDrive rubber wire drive roll to improve machine performance, traction and service life.

7. Leadership & Corporate Updates

• International Paper – Strengthened its Board of Directors with two new appointments while announcing planned retirements.

8. Incidents, Safety & Environmental Events

• Woodland Pulp – Investigation into the fatal hydrogen sulfide incident continued with updated findings from safety authorities.

• Nippon Dynawave – Extended employee pay support following the Longview mill tank explosion investigation.

9. Industry Events & Conferences

• PAPEXPO 2026 – Preparations continue for the international exhibition scheduled for October 1–3, 2026, in Hyderabad, India, bringing together global paper, pulp and packaging stakeholders.

Conclusion

This week's developments reinforce the industry's continued transition toward sustainable packaging, operational modernization, automation, and strategic portfolio optimization. While companies remain challenged by market volatility, rising costs, and shifting demand patterns, investment activity and innovation remain strong indicators of long-term confidence. Sustainability, digital transformation, and resource efficiency continue to shape strategic priorities across the global pulp and paper sector, positioning the industry for greater resilience and competitiveness in the years ahead.