Executive Summary

The global pulp, paper, packaging, tissue, and specialty materials industry continued to demonstrate resilience during June Week 2 despite ongoing geopolitical uncertainty, inflationary pressures, and evolving sustainability regulations.

This week was characterized by:

• Large-scale investments exceeding billions of yuan and rubles across pulp, specialty paper, packaging, and molded fiber segments.

• Continued consolidation in corrugated packaging markets through strategic acquisitions.

• Significant recycled paperboard price increases across North America and Asia.

• Growing adoption of artificial intelligence, automation, and advanced manufacturing technologies.

• Strong momentum behind circular economy initiatives, fiber-based packaging innovation, and decarbonization programs.

• Continued expansion into higher-value specialty paper, electrical insulation, molded fiber, and sustainable packaging markets.

TOP 10 STRATEGIC DEVELOPMENTS OF THE WEEK

1. Yunjing Forestry Launches 6.059 Billion Yuan Pulp Expansion

China's Yunjing Forestry & Paper announced plans for a 500,000 tpa bleached chemical pulp line, representing one of the largest investment announcements of the week and reinforcing China's commitment to domestic fiber supply security.

2. Kemira Issues Profitability Downgrade

Kemira reduced its EBITDA guidance from €470–570 million to €400–500 million, highlighting persistent cost inflation, weak demand in pulp and packaging markets, and ongoing supply-chain challenges.

3. VPK Group Completes Full Acquisition of Fencor Packaging

The acquisition strengthens VPK's position in the UK corrugated packaging market and continues the broader trend of packaging industry consolidation across Europe.

4. Corrupac Acquires Graneros Corrugated Plant

The acquisition doubles Corrupac's production capacity in Chile and expands its footprint across FMCG, retail, logistics, and export markets.

5. Valmet Launches Revolutionary 3D Fiber Technology

Valmet introduced its new high-capacity molded fiber technology platform, potentially accelerating the replacement of plastic packaging with fiber-based alternatives.

6. Sonoco and Greif Announce Major Price Increases

Both companies implemented $60-per-ton recycled paperboard price increases, signaling stronger market fundamentals and ongoing cost pressures.

7. AI Delivers Measurable Mill Performance Improvements

Artificial intelligence applications demonstrated:

• 95% predictive maintenance accuracy

• 25–30% reduction in downtime

• 18% reduction in repair costs

• 99% defect detection accuracy

8. Mondi and Swiss Krono Replace Plastic Packaging with Paper

A major example of industrial-scale plastic replacement through fiber-based packaging solutions.

9. Elopak Introduces Low-Carbon Aluminium Cartons

The move reduces carton carbon footprints by approximately 8%, advancing decarbonization in liquid packaging.

10. DS Smith Faces Growing Closure Opposition

The proposed closure of its Launceston facility has become one of the most significant workforce and restructuring stories in Europe this week.

INVESTMENTS, EXPANSIONS & PROJECTS

Solenis & MEPCO Expand Strategic Partnership

A five-year supply agreement will support MEPCO's PM5 project in Saudi Arabia, which will produce 450,000 tonnes annually of recycled containerboard and become one of the Middle East's largest paper production facilities.

Kappa Rus Modernization Program

The company will invest RUB 120 million in an automated molded pulp packaging production line expected to increase productivity by 25%.

L-Pak Kuban Announces RUB 9.3 Billion Packaging Plant

The new corrugated packaging facility in Krasnodar will create more than 300 jobs and significantly expand Russia's packaging capacity.

Bracell Revises Bataguassu Pulp Mill Project

Bracell temporarily withdrew its installation license application to redesign portions of the project while maintaining its preliminary environmental approval.

Jintong Paper Starts PM6 Specialty Paper Machine

The 120,000 tpa thermal base paper machine is part of a larger 280,000 tpa specialty paper expansion valued at 2.15 billion yuan.

Metsä Tissue Inaugurates New Hand Towel Line

The new MF7 converting line strengthens professional hygiene tissue production in Finland.

Delfort Expands Electrical Insulation Materials Business

A new pressboard machine supports growing demand from transformer manufacturers, power utilities, and electrical infrastructure projects.

Velvet CARE Expands into Germany

The establishment of Velvet CARE Germany GmbH strengthens the company's direct commercial presence across Germany, Austria, and Switzerland.

Project Falcon Tissue Mill Placed on Hold

The proposed U.S. tissue manufacturing facility capable of creating 300 jobs has been suspended indefinitely.

MERGERS, ACQUISITIONS & STRATEGIC PARTNERSHIPS

Corrupac Acquires Graneros Corrugated Plant

The acquisition doubles production capacity and enhances national coverage in Chile.

VPK Acquires Full Ownership of Fencor Packaging

The transaction strengthens VPK's UK manufacturing and distribution network.

Solenis-MEPCO Partnership Expansion

The five-year agreement reinforces long-term collaboration on one of the Middle East's most important paper projects.

PRICE CHANGES & MARKET DEVELOPMENTS

Sonoco

• Recycled paperboard: +$60/ton

• Converted paperboard products: +7%

Greif

• Recycled paperboard: +$60/short ton

• Tube & core products: +6.5%

Chuetsu Pulp & Paper

• Printing papers and paperboard grades: +15% minimum increase effective August 2026

Market Outlook

The coordinated pricing actions suggest continued upward pressure from raw materials, logistics costs, and energy inflation.

FINANCIAL PERFORMANCE

Kemira Lowers Profitability Outlook

Revenue Guidance:
€2.6–3.0 billion (unchanged)

EBITDA Guidance:
Reduced to €400–500 million from €470–570 million.

Key Drivers:

• Higher logistics costs

• Rising raw material costs

• Soft demand from packaging and pulp sectors

• Geopolitical disruptions

This represents the most significant financial warning issued during the reporting period.

SUSTAINABILITY, ESG & CIRCULAR ECONOMY

West Fraser

• 25% reduction in Scope 1 and 2 emissions

• 20% reduction in Scope 3 emissions

• 75 million seedlings planted

Cascades

Completed its 2021–2025 Sustainability Action Plan with significant achievements in circularity, climate action, and recycled fiber utilization.

Pankaboard

Reduced cartonboard carbon footprint from 681 kg CO₂e/tonne to 383 kg CO₂e/tonne.

RDM Group

• Recycled 1.058 million tonnes of paper

• Increased renewable electricity use to 79%

• Reduced carbon intensity by 20%

UPM Communication Papers

Achieved a 38% reduction in fossil CO₂ emissions at European mills.

SCA

Published a major forestry policy study concluding that reduced harvesting could significantly impact jobs, raw material supply, and economic output while providing limited climate benefits.

Suzano & Moura

Expanded battery reverse logistics programs within forestry operations.

PRODUCTS, TECHNOLOGY & INNOVATION

Valmet 3D Fiber Technology

Potential game-changing molded fiber platform enabling large-scale production of fiber-based alternatives to plastic packaging.

Mondi & Swiss Krono

Successfully replaced plastic films with recyclable paper-based packaging systems.

UPM Specialty Adhesives

Introduced:

• PharmaSure™

• Vetro™

• Endurance™

Targeting pharmaceutical, beverage, and industrial labeling applications.

Elopak Low-Carbon Aluminium

Immediate 8% reduction in carton carbon footprint.

Cortec Solar-Powered Packaging Operations

Became the first European VCI packaging facility to generate its own electricity using solar power while operating a closed-loop recycling system.

Artificial Intelligence in Manufacturing

AI continues transitioning from pilot projects to operational deployment, delivering measurable gains in maintenance, quality control, forecasting, and productivity.

Koehler Paper Greenium Relaunch

The company relaunched its premium recycled paper portfolio manufactured from 100% recycled fiber.

PAC Machinery, CMES Robotics & FANUC

Showcased AI-powered pick-to-pack automation systems integrating robotics, machine vision, and intelligent packaging operations.

Finnish Cellulose Film Research Project

Researchers are advancing fully cellulose-based barrier films and coatings designed to replace fossil-based plastic packaging materials.

LEADERSHIP & CORPORATE DEVELOPMENTS

Graphic Packaging Holding Company

Larry M. Venturelli elected Chairman of the Board, supporting the company's next phase of strategic growth and governance.

OPERATIONS & SUPPLY CHAIN

Stora Enso Logistics Collaboration

Joint supply-chain initiative designed to improve logistics efficiency, reduce transportation costs, and lower emissions.

CERTIFICATIONS & QUALITY

Stora Enso Oulu Mill

Received internationally recognized food safety certification, strengthening its position in food-contact packaging markets.

Industry Outlook

The industry's direction remains clear:

1. Packaging remains the primary growth engine.

2. Molded fiber and fiber-based packaging continue to attract investment.

3. Artificial intelligence is becoming mainstream in mill operations.

4. Sustainability initiatives are increasingly linked to profitability and competitive advantage.

5. Industry consolidation remains active, particularly in packaging.

6. Specialty papers and electrical insulation materials represent emerging growth segments.

7. Pricing power is gradually returning in several paperboard markets.

The combination of capital investment, technology adoption, sustainability innovation, and strategic acquisitions indicates that the global pulp and paper industry remains focused on long-term growth despite near-term economic and geopolitical challenges.