Pulp & Paper Chronicle:October 2026 Weekly Edition 1– Industry Roundup

The global pulp and paper industry is navigating a period of significant transformation, with companies balancing capacity expansion, operational restructuring, cost pressures, sustainability commitments and changing packaging demand. Developments reported in the first weekly edition of Pulp & Paper Chronicle for October 2026 highlight contrasting industry trends: major investments in tissue, pulp and packaging production alongside mill shutdowns, workforce concerns and continuing scrutiny of market consolidation.

From new tissue machine start-ups and large-scale aseptic carton investments to fibre-based bottles, advanced process monitoring and greenhouse gas reduction targets, the week's developments demonstrate how manufacturers and technology providers are positioning themselves for evolving market requirements.

1. Investments, Expansions and New Projects: Capacity Growth and Strategic Modernization

Investment activity remains a major theme across the industry, with companies strengthening production capacity, improving cost competitiveness and expanding into new product segments.

Sanabel Al Ataa Expands Tissue Production Capacity to 47,000 Tonnes

Sanabel Al Ataa has successfully started up its second tissue machine, PM2 (TM2), supplied by Baosuo. The machine has a design speed of 1,600 metres per minute, a width of 3.65 metres and an annual production capacity of approximately 26,000 tonnes.

Following the commissioning of its first Baosuo-supplied tissue machine, PM1, in 2025, the company now has a combined annual tissue production capacity of approximately 47,000 tonnes. PM1 contributes around 21,000 tonnes annually, strengthening the company's manufacturing base and its ability to serve tissue markets.

AFT and Zinc Nacional Strengthen Their Technology Partnership

Aikawa Fiber Technology (AFT) has successfully started up a new MaxEdge™ refiner at Zinc Nacional's paperboard mill in Mexico. The development marks another step in the companies' long-standing cooperation on recycled-fibre stock preparation.

Zinc Nacional's mill produces paperboard and specialty grades using recovered paper and board as its primary raw material. It recycles more than 95,000 tonnes annually and has a production capacity of 7,000 tonnes per month. The new refiner expands the range of AFT technologies installed at the facility, supporting the mill's ongoing efforts to improve process performance.

Norske Skog Commits NOK 850 Million to Saugbrugs Rebuild

Norske Skog has approved an investment of up to approximately NOK 850 million to rebuild paper machine 6 (PM6) at its Saugbrugs mill in Halden, Norway.

The rebuilt machine is expected to enable flexible production of thermomechanical pulp-based kraftliner and supercalendered magazine paper. According to the company, the project will improve the mill's cost position, provide greater production flexibility and support its strategic expansion into fibre-based packaging.

PM6 was taken out of production following a rockslide at Saugbrugs in April 2023. The investment represents a significant commitment to the site's long-term industrial future and the development of additional packaging capabilities.

Oji Group Breaks Ground on $110 Million Aseptic Carton Plant in Vietnam

Japan's Oji Group has begun construction of a $110 million aseptic carton packaging plant in Dong Nai City, southern Vietnam. Operating under the Oji Liquid Pak brand, the facility will occupy approximately 57,000 square metres at Long Thanh High-Tech Park.

Scheduled to begin operations in 2028, the plant will have a maximum annual production capacity of eight billion cartons for beverages and other liquid food products. The project is expected to create more than 200 jobs and strengthen Oji Group's manufacturing and supply network across Southeast Asia and international markets.

Pulpex Opens Its First Commercial Fibre Bottle Factory

UK packaging technology company Pulpex has opened its first commercial fibre bottle manufacturing facility near Glasgow, Scotland. The factory has an initial production capacity of up to 40 million units annually and is expected to create approximately 39 skilled manufacturing jobs.

Supported by the UK's National Wealth Fund and the Scottish National Investment Bank, the facility marks a transition from technology development and pilot production to commercial-scale manufacturing. Pulpex aims to expand its production model through a global Manufacture Under Licence network, with a longer-term roadmap targeting one billion units annually.

The development strengthens the industry's efforts to commercialise renewable packaging alternatives to conventional glass and plastic formats.

Ence Invests More Than €200 Million in Pulp and Decarbonization Projects

Spanish pulp producer Ence is advancing specialty pulp production, industrial efficiency and emissions reduction through investments exceeding €200 million at its Navia biofactory in Asturias.

More than €160 million has been allocated to expanding production processes and developing fluff pulp for the European absorbent-products market. Ence says its facility is pioneering the production of this pulp grade from eucalyptus and has completed product certifications with more than 70 international customers.

The company has also inaugurated a higher-capacity wood-processing line capable of handling 5,400 cubic metres per day. The upgrade is expected to improve the availability of bark for use as biofuel, reduce dependence on external biomass and strengthen the site's circular-economy model.

2. Shutdowns, Closures and Curtailments: Market Pressures Reshape Production

While several companies are investing in new capacity, others are responding to difficult market conditions through production suspensions, permanent closures and restructuring. These developments underline the challenges facing pulp, paperboard and specialty-paper producers.

RYAM Indefinitely Suspends Production at Temiscaming Mill

Rayonier Advanced Materials (RYAM) has indefinitely suspended production at its Temiscaming pulp and board mill in Quebec, Canada, affecting approximately 300 workers, according to the trade union Unifor.

Production stopped on October 4 after additional orders extended operations beyond the originally planned September 15 shutdown. The mill has an annual capacity of 180,000 tonnes of folding boxboard and 290,000 tonnes of hardwood-based high-yield pulp, including approximately 60,000 tonnes of pulp used internally.

RYAM cited difficult market conditions for pulp and folding boxboard, compounded by additional US tariffs on Canadian goods. Approximately 75% of the mill's folding boxboard production was exported to the United States, making trade conditions particularly significant for the facility.

Packaging Corporation of America Plans Middletown Plant Closure

Packaging Corporation of America (PCA) plans to permanently close its Middletown, Ohio, plant, affecting 91 employees, according to a letter submitted to the state.

The company described the closure as a difficult business decision and confirmed that employees had been notified. The development comes alongside a separate planned closure of PCA's Gas City plant in Indiana, which is expected to affect 78 employees during the week of October 26.

The reported closures illustrate the restructuring pressures facing packaging manufacturers as they review their production footprints and operating requirements.

Pixelle Specialty Solutions to Close Fremont Paper Mill

Pixelle Specialty Solutions plans to permanently close its Fremont, Ohio, paper mill after agreeing to sell its carbonless paper business. A state filing indicated that 61 employees would be laid off, with the first job cuts scheduled to begin on December 1.

According to the notice, the buyer intends to move carbonless paper production to a facility in Wisconsin. The buyer's identity and the expected date of the Fremont plant's closure were not specified in the filing.

The transaction will therefore involve a change in the location of production alongside the planned closure of the existing mill.

Mercer Rosenthal Gradually Resumes Wastewater Discharge

Mercer Rosenthal has gradually resumed discharge from its on-site wastewater treatment plant following a precautionary suspension during the restart process after a four-week maintenance shutdown.

On October 1, the company received a report of discoloration near the wastewater discharge point. It halted the restart process and discharge operations while retaining wastewater in on-site buffer basins. Local authorities subsequently introduced a temporary swimming ban for the southern section of the Bleiloch Reservoir as a precaution.

Following communication with the relevant environmental authorities, wastewater discharge into the Saale River gradually resumed on October 3. Preparations were also underway to resume pulp production. The development highlights the importance of environmental monitoring and regulatory coordination during mill restarts.

3. M&A, Partnerships and Joint Ventures: Consolidation Meets Regulatory Scrutiny

Strategic cooperation and acquisitions continue to offer opportunities for companies seeking broader capabilities, stronger market positions and integrated technical services. At the same time, competition concerns remain a significant consideration for large transactions.

European Commission Maintains Concerns Over UPM–Sappi Joint Venture

UPM and Sappi continue to address the European Commission's serious concerns regarding their proposed graphic paper joint venture.

The companies received a Letter of Facts from the Commission and are analysing the issues raised. UPM disagrees with the Commission's preliminary assessment and maintains that the proposed transaction could strengthen the long-term competitiveness, sustainability and resilience of the European graphic paper industry.

The parties plan to submit specific remedies to address the concerns, but have indicated that they do not intend to propose divestments. The case highlights the regulatory challenges facing consolidation initiatives in a market where manufacturers are seeking to improve competitiveness while maintaining effective competition.

Bellmer Acquires Rolotipo to Expand South American Service Capabilities

German machinery supplier Bellmer has acquired Rolotipo Indústria e Comércio de Artefatos de Borracha e Plásticos Ltda., a Brazilian specialist in roll covering and roll services for the paper, pulp, graphic arts and steel industries.

Founded in 1971, Rolotipo provides rubber roll coverings, roll grinding, drilling, dynamic balancing, shaft manufacturing and other mechanical services.

The acquisition supports Bellmer's strategy to expand its service capabilities in South America. Combining Bellmer's process and equipment expertise with Rolotipo's specialist knowledge is expected to broaden the integrated services available to customers throughout the lifecycle of their production equipment.

4. Price Changes and Market Pricing: Sappi Announces Paperboard Increase

Sappi Europe Raises Paperboard Prices by €89 per Tonne

Sappi Europe has announced a price increase of €89 per tonne across its paperboard portfolio, effective for all new orders and deliveries from November 1, 2026.

The company cited sustained cost pressures despite productivity improvements, efficiency initiatives and cost-cutting measures. The increase is intended to support continued product quality, service levels and supply security.

The announcement highlights the industry's continuing focus on margin protection as manufacturers seek to manage operating costs while maintaining reliable supply for customers. The extent to which the increase is absorbed by buyers or passed through supply chains will depend on market conditions and commercial negotiations.

5. Sustainability and the Circular Economy: Emissions and Water Efficiency in Focus

Environmental performance remains an important area of operational investment, with companies targeting lower greenhouse gas emissions, reduced freshwater consumption and more efficient use of production resources.

Cascades Receives Approval for 2035 Emissions Reduction Targets

Cascades has received approval from the Science Based Targets initiative (SBTi) for its new greenhouse gas emissions reduction targets for 2035.

Under its fifth Sustainability Plan, launched in June 2026, the company aims to reduce Scope 1 and Scope 2 emissions by 67.2% by 2035 compared with 2019 levels. It has also committed to reducing selected Scope 3 emissions by 41.3% over the same period.

Between 2019 and 2025, Cascades reduced its Scope 1 and Scope 2 emissions by 32.6%. The company attributes its progress to measures including lower energy consumption, equipment electrification and exploration of renewable electricity sourcing opportunities.

The approved targets provide a framework for continuing decarbonisation efforts across the company's operations and selected parts of its value chain.

UPM Nordland Papier Expands Water-Saving Technology

UPM Nordland Papier is expanding John Crane's water-saving technology across its paper mill in Dörpen, Germany, following initial installations that reduced seal-water consumption to almost zero while maintaining reliable pump operation.

The initiative focuses on freshwater used as barrier water for double mechanical seals. Although this is a supporting process rather than a direct paper-production input, reducing consumption across numerous pumps can generate cumulative savings.

The mill produces fine and graphic papers and already operates at approximately four cubic metres of freshwater per tonne of paper. The expansion demonstrates how targeted engineering improvements can contribute to water-efficiency goals without compromising production reliability.

6. Products and Innovation: Fibre Packaging and Digital Process Control Advance

Innovation across the industry is addressing two important priorities: developing packaging materials that use renewable fibre and improving manufacturing reliability through more advanced monitoring technologies.

Voith Introduces NipDynamics for Real-Time Roll Monitoring

Voith has expanded its digital technology portfolio with NipDynamics, a roll-cover sensor system designed to monitor nip conditions while a paper machine is operating.

Embedded directly in roll covers, the sensors continuously measure operating conditions at full machine speed and high temperatures, even with paper in the nip. The system provides operators with real-time information that conventional static measurement methods may not capture.

By identifying issues such as roll misalignment, roll-cover failures and nip-profile inconsistencies, the technology is designed to help mills reduce paper breaks, quality problems and unplanned downtime.

The launch reflects the growing role of digital monitoring and data-driven process optimisation in improving machine reliability.

Tetra Pak Advances Paper-Based Ice Cream Packaging

Tetra Pak has introduced Tetra Pak® Ice Cream Wrap, a paper-based wrapping solution developed specifically for ice cream producers.

The material is made from up to 85% paper sourced from FSC-certified forests and other controlled sources. Its thin profile and multilayer structure are designed to protect products through the cold chain while supporting efficient material use and reliable manufacturing operations.

The company reports that sustainability is an important consideration in ice cream packaging for 24% of consumers globally, while 16% prefer paper packaging for the category. The solution adds another option for producers looking to differentiate their products while responding to changing packaging preferences.

7. Leadership and Corporate Updates: Governance and Workforce Continuity

Leadership appointments, board oversight and workforce arrangements also featured prominently in the week's developments, reflecting the importance of organisational continuity during operational and strategic change.

Nippon Dynawave Workers to Receive Pay Through January 17, 2027

The Nippon Dynawave mill in Longview, Washington, will continue employing and paying workers through at least January 17, 2027, under an agreement with the Association of Western Pulp and Paper Workers, according to the union.

The agreement provides for most employees to return to work during the autumn, while certain employees will continue receiving pay through the specified date. The mill had not yet resumed full production at the time of the report.

The arrangement follows a fatal tank implosion at the mill on May 26 that released a deadly chemical and killed 11 workers. Maintaining the workforce is intended to support employees and their families while the company works toward a safe recovery.

International Paper Strengthens Board Committee Oversight

International Paper has assigned newly appointed independent directors Katherine Collins and Lori J. Ryerkerk to key board committees, effective October 8, 2026, following their appointments to the board effective October 1.

Collins joined the Audit and Finance Committee and the Governance Committee. Ryerkerk was appointed to the Management Development and Compensation Committee and the Safety, Sustainability and Technology Committee.

The company also confirmed that directors Ahmet C. Dorduncu and Kathryn D. Sullivan plan to retire on December 31, 2026. Transition arrangements will allow them to attend relevant committee meetings as non-voting invited guests, supporting an orderly transfer of responsibilities.

MEPCO Appoints Marwan Diab as CEO Effective January 2027

Middle East Paper Co. (MEPCO) has appointed Marwan Diab as chief executive officer, effective January 1, 2027. The appointment follows the mutually agreed departure of current CEO Faisal Haddawi, whose final working day will be December 31, 2026.

Diab brings approximately 25 years of experience in capital-intensive industries, including operational transformation, business restructuring, mergers and acquisitions, and production-network development.

His previous senior leadership roles include positions at Arabian Packaging Co., Obegi Chemicals Group and INDEVCO Group. His experience in operational and financial transformation is expected to be relevant as MEPCO continues to manage its business and production operations.

Industry Outlook: Balancing Growth, Resilience and Efficiency

The developments reported in October's first weekly edition reveal an industry moving in several directions simultaneously. Investments in tissue production, kraftliner, aseptic cartons, specialty pulp and fibre bottles indicate continuing opportunities in selected product categories. At the same time, shutdowns in Canada and the United States demonstrate the pressures facing operations exposed to challenging market conditions, trade measures and business restructuring.

Sustainability is increasingly linked to practical manufacturing improvements. Ence's biomass utilisation initiatives, Cascades' emissions targets and UPM Nordland Papier's water-saving technology show how resource efficiency and environmental objectives can be integrated into operational strategies.

Innovation is also broadening the industry's options, from commercial-scale fibre bottles and paper-based food packaging to digital sensors that help improve machine reliability. Meanwhile, the UPM–Sappi joint venture illustrates that strategic consolidation must still address competition requirements.

For pulp and paper producers, the central challenge is to invest selectively, protect margins, maintain dependable operations and adapt product portfolios to changing customer and regulatory expectations. The companies best positioned to combine operational discipline with technological innovation and resource efficiency will be better equipped to navigate the industry's continuing transformation.