March 2026 – Comprehensive Industry Intelligence

The global pulp and paper sector continues to undergo significant transformation as companies respond to shifting demand, sustainability requirements, and economic volatility. Across Europe, Asia, and the Americas, producers are investing heavily in capacity expansion, technology modernization, energy efficiency, and sustainable packaging innovations while navigating fluctuating pulp prices and evolving market structures.

This comprehensive industry update summarizes major investments, acquisitions, production shutdowns, restarts, product innovations, corporate restructuring, and price adjustments shaping the pulp and paper industry in 2026.

1. Major Investments and Capacity Expansion Projects

Navigator Company Expands European Tissue Capacity

The Navigator Company has approved a €115 million investment to install a new tissue paper production machine at its Aveiro industrial complex in Portugal.

Key details:

• Capacity: 70,000 tonnes annually

• Investment timeline

  • €48 million in 2026

  • €53 million in 2027

  • €14 million in 2028

• Expected startup: March 2028

The new machine will primarily supply tissue reels to the company’s UK converting operations.

Wuzhou Special Paper Launches Massive Expansion

Wuzhou Special Paper Industry is investing RMB 5.44 billion to expand its production facility in Jiangxi.

Planned additions include:

• 220,000 tons of information paper

• 300,000 tons of tissue paper

• specialty paper grades for food, medical, and decorative uses

A new wastewater treatment facility will also be constructed to meet environmental standards.

Jintong Paper Specialty Paper Project

Jintong Paper (Jiangsu) is accelerating its 280,000-ton specialty paper project, focused on thermal paper used in logistics, finance, and medical applications.

Production is expected to begin mid-April 2026, supporting the company’s transition toward higher-value specialty grades.

Cascades Upgrades Boxboard Production

Cascades is investing $6.9 million in its Kingsey Falls plant to enhance production of uncoated recycled boxboard and improve operational efficiency.

Palm Modernizes German Paper Mill

Palm is investing more than €20 million to modernize its Eltmann paper mill, strengthening the facility’s competitiveness and production efficiency.

DS Smith Upgrades Danish Packaging Facility

DS Smith announced a €13 million investment in its Grenaa packaging facility in Denmark.

The upgrade includes installation of a five-colour flexo rotary die-cutting line to improve automation, precision, and productivity in corrugated packaging production.

Valmet Invests in Electric Boiler Technology

Valmet is installing a 3 MW electric boiler at its Tampere production unit to reduce greenhouse gas emissions and move toward net-zero operations.

UPM Modernizes Hydropower Infrastructure

UPM Energy will invest over €20 million to modernize the Tyrvää hydropower plant in Finland, improving power generation flexibility and reliability.

2. Technology Innovation and Sustainability Projects

UPM Heat Pump System Converts Waste Heat to Steam

UPM Communication Papers is installing a heat pump system at its Augsburg mill.

Key impact:

• 8 tons of steam per hour produced from recovered heat

• Covers 16% of steam demand for paper machine PM3

• Reduces CO₂ emissions by 6,000 tonnes annually

B.C. Pulp Mill Tests Green Hydrogen

The Kruger Kamloops pulp mill in Canada has launched a pilot project using green hydrogen to fuel the lime kiln.

Estimated benefits:

• Reduction of 7,000 tonnes of greenhouse gas emissions annually

• Potential replacement of natural gas in pulp production.

Predictive Maintenance Adoption

IPEL implemented predictive maintenance technology that saved nearly R$500,000 by preventing equipment failures and optimizing maintenance scheduling.

3. Strategic Acquisitions and Corporate Integration

Industry consolidation continues to reshape the sector.

Smurfit Westrock Expands in Latin America

Smurfit Westrock acquired Cartomanabí, a corrugated packaging producer in Ecuador with capacity exceeding 50,000 tonnes per year.

Premier Paper Group Acquires PPB Ltd

Premier Paper strengthened its presence in the UK display and print sector by acquiring PPB Ltd, expanding its product range and distribution capabilities.

ProAmpac Acquires TC Transcontinental Packaging

Flexible packaging leader ProAmpac completed the acquisition of TC Transcontinental Packaging, strengthening its global packaging portfolio.

Little Rapids Rebrands Specialty Paper Business

Little Rapids Corporation merged Shawano Specialty Papers and Nexxa under a unified brand:

Rapids Paper + Packaging

The integration combines specialty paper, coating technologies, and flexible packaging capabilities.

SPB Acquires Former Condat Paper Mill

Groupe SPB acquired the Condat paper mill site in France and plans to develop a €95 million biopark focused on circular economy technologies and green energy.

4. Production Upgrades and New Equipment Installations

Cardbox Packaging Installs Duopress System

Cardbox Packaging installed the Duopress 106 FCSB, integrating multiple finishing processes:

• hot foil stamping

• die-cutting

• stripping

• blanking

This improves productivity in premium folding carton manufacturing.

Pavlovsky Posad Plant Modernization

The Russian corrugated plant is upgrading its paper machine press section to enhance:

• sheet uniformity

• energy efficiency

• production flexibility.

THIMM Boosts Productivity with BOBST Equipment

THIMM invested in advanced BOBST converting systems, including the MASTERCUTLINE and MASTERFOLD folder-gluer, significantly improving packaging productivity.

Kıvanç Paper PM1 Technology Upgrade

Kıvanç Paper upgraded PM1 to produce sustainable packaging materials using advanced papermaking technology.

5. Production Startups and Capacity Recovery

Chenming Zhanjiang Base Restarts Plant 3

Chenming successfully restarted Plant 3 at its Zhanjiang base.

Key specifications:

• capacity: 190,000 tonnes per year

• machine speed: 1600 m/min

• width: 6400 mm

The restart restores integrated pulp and paper operations at the site.

Paloma Launches High-Speed Tissue Line

Paloma installed Line 16, capable of producing:

• 648,000 toilet rolls per day

• operating speed up to 700 meters per minute

Rengo Opens New Packaging Plant

Rengo subsidiary TRIWALL started operations at a new plant in Shandong, China, strengthening the company’s presence in Asian packaging markets.

6. Production Shutdowns and Restructuring

Metsä Fibre Joutseno Mill Shutdown

Metsä Fibre announced a production shutdown starting March 31, 2026 at its Joutseno pulp mill due to weaker demand in Asian markets.

Canfor Pulp Operational Interruptions

Canfor Pulp reported:

• maintenance outage at the Northwood mill

• planned shutdown at the Intercontinental mill.

Kotka Mills Restructuring Negotiations

Kotka Mills initiated negotiations that could affect up to 31 positions, aiming to improve efficiency and cost structure.

7. New Products and Packaging Innovations

Metsä Board Introduces Pro FBB Go

Metsä Board launched Pro FBB Go, a folding boxboard designed for food and pharmaceutical packaging applications.

Paper-Based Sustainable Packaging Growth

Innovations in packaging continue expanding, including sustainable folding cartons and recyclable fiber-based solutions.

8. Market Prices and Paper Price Increases

Price increases across multiple paper segments reflect rising raw material costs and improving demand.

Koehler Paper

Announced price increases for:

• label paper

• thermal paper

• POS paper grades.

Burgo Specialty Papers

Burgo increased prices for its Mosaico specialty paper range due to rising production costs.

Sonoco

Implemented price increases for:

• uncoated recycled paperboard

• converted paperboard products.

Mitsubishi HiTec Paper

Announced price increases across several specialty paper grades in Europe.

China Paper Industry

Chinese paper producers raised prices 50–300 yuan per ton as demand recovered following the Lunar New Year.

9. Corporate Financial Performance

SIG Group

Reported €3.28 billion revenue in 2025.
Dividend payments were paused to support strategic investments.

Rayonier Advanced Materials

2025 results:

• Revenue: $1.5 billion

• EBITDA: $133 million

Weak demand and operational disruptions impacted profitability.

Essity

Essity reported strong profitability and announced:

• acquisition of Edgewell feminine care brands

• SEK 1 billion cost savings program

• share buybacks.

SCA

SCA achieved strong results:

• revenue: SEK 20.4 billion

• EBITDA margin: 32%

UPM

UPM reported €9.7 billion in sales with continued investment in renewable materials and bio-based technologies.

ANDRITZ

ANDRITZ reported:

• order intake: €8.9 billion

• order backlog: €10.5 billion

Demand remained strong in the pulp and hydropower sectors.

Conclusion

The pulp and paper industry in 2026 is characterized by major investments, technological transformation, and strategic consolidation.

Key industry trends include:

• expansion in tissue, specialty paper, and packaging segments

• growing adoption of low-carbon technologies and renewable energy

• automation and digitalization improving operational efficiency

• continued industry consolidation and acquisitions

• rising paper prices driven by higher pulp and raw material costs.

Despite economic volatility and fluctuating demand, the sector is positioning itself for long-term growth by prioritizing sustainability, high-value products, and advanced manufacturing technologies.