Pulp & Paper Industry News Roundup – October 2026 Weekly Edition 4

The October 2026 roundup covers 35 developments across the global pulp, paper, packaging and forest-products industries. The stories span new investments and capacity expansions, mill closures, mergers and partnerships, price movements, financial results, sustainability initiatives, product innovation, leadership changes, operations, safety, regulation and corporate recognition.

The following report presents every story under its original newsletter category.

1. Investments, Expansions & New Projects

1.1 Keryas to Establish 20,000 MTPA Tissue Manufacturing Facility in Oman

Keryas Paper Industry LLC and Al Karama Hypermarket Group signed a memorandum of understanding at ProPaper 2026 in Dubai to establish a tissue manufacturing facility in Oman. The proposed investment is approximately US$12 million, with the plant planned for Sohar Industrial City, Phase 7.

The project will be developed through a joint venture, Sohar Paper Products LLC. Keryas already operates a kraft paper mill with a capacity of 150,000 tonnes per year, while Al Karama operates 15 hypermarkets. The proposed tissue facility is intended to strengthen local manufacturing and supply capabilities in the region.

1.2 Jinzhou Pulp & Paper Announces Environmental Assessment for 1.5 Million-Ton White Paperboard Project

Guangxi Jinzhou Pulp & Paper announced a second public notice relating to the environmental impact assessment of its proposed 1.5-million-tonne-per-year white paperboard project in Qinzhou, Guangxi, China.

The proposed development will be located at the existing Jinguang Industrial Park and includes pulp preparation facilities, pulp board warehouses and paper production workshops. The project represents a significant planned capacity addition, with the environmental assessment covering the proposed production facilities and associated infrastructure.

1.3 Valmet to Supply 350-Tonne-Per-Day BCTMP Line to ITC Bhadrachalam Mill in India

Valmet will supply a complete bleached chemi-thermomechanical pulp (BCTMP) line and evaporation plant to ITC's Bhadrachalam mill in India. The line is designed for a capacity of 350 bone-dry tonnes per day and will use high-temperature chemi-thermomechanical pulping technology.

The delivery includes evaporation, flash drying and baling equipment, Valmet DNA distributed control systems, flow control equipment, spare parts and a white liquor disc filter. The investment is intended to support pulp quality, strength, bulk and high wood yield while improving energy efficiency.

1.4 CMPC Secures Preliminary Environmental Licence for 3 Million-Tonne Pulp Mill in Brazil

CMPC has secured a preliminary environmental licence for its proposed Natureza industrial complex in Barra do Ribeiro, Rio Grande do Sul, Brazil. The project is estimated to involve an investment of R$27 billion and is designed to produce up to 3 million tonnes of eucalyptus pulp annually.

The preliminary licence is an important regulatory milestone, but it does not authorise construction. The company must still obtain an installation licence. The environmental review included an environmental impact assessment and a public hearing held on 29 January 2026.

The wider project also includes a proposed export terminal at the Port of Rio Grande, with a reported investment of R$1.5 billion.

1.5 Eldorado Brasil Leaves 2.6 Million-Tonne Pulp Expansion Without Construction Timeline

Eldorado Brasil has not established a construction timetable for its proposed second pulp production line at Três Lagoas, which would add 2.6 million tonnes of annual capacity. If completed, the expansion could increase the company's total pulp capacity from approximately 1.8 million to 4.4 million tonnes per year.

The project remains affected by the company's financial commitments following the agreement in May 2025 for J&F to acquire Paper Excellence's stake in Eldorado. The transaction was valued at approximately R$15 billion. Eldorado reported net debt of R$9.7 billion at the end of 2025, compared with R$966 million in 2024.

The company has also been developing an 86.7-kilometre railway connection to a terminal in Aparecida do Taboado. BNDES approved R$1.05 billion in financing for the railway project in December 2025.

1.6 Georgia-Pacific to Invest $150 Million in Palatka Mill Paper Machine Rebuild

Georgia-Pacific plans to invest US$150 million to replace and modernise Paper Machine No. 4 at its Palatka mill in Florida. Completion is expected in the second quarter of 2028.

The machine produces tissue products associated with the Angel Soft brand. The existing machine was installed in 1980, and the rebuild is intended to improve safety, reliability, product quality and productivity.

The Palatka facility also manufactures products associated with brands including Angel Soft, Quilted Northern, Brawny and Sparkle. Georgia-Pacific products from the site reach approximately 60 million US households.

1.7 UPM to Open First Label Material Factory in India by Early 2028

UPM Adhesive Materials plans to open its first label-material manufacturing facility in India by early 2028. The proposed facility in Gujarat will include an acrylic coating line.

The investment follows UPM's establishment of a slitting and distribution terminal near New Delhi in March 2026. The company also has an existing presence near Mumbai.

Local manufacturing is expected to shorten lead times and improve supply availability for customers. UPM sees opportunities in India driven by urbanisation, digitalisation, infrastructure development and rising consumption.

1.8 MM Kwidzyn Completes Continuous Cooking Investment, Targeting One-Third Reduction in CO₂ Emissions

MM Board & Paper has brought its continuous cooking investment at the Kwidzyn mill in Poland into operation. The project is expected to improve the mill's wood-use efficiency and reduce its environmental footprint.

The company estimates that the investment could lower annual wood consumption by approximately 50,000 cubic metres while reducing carbon dioxide emissions by around 100,000 tonnes. This would represent approximately one-third of the mill's emissions.

The project is designed to deliver these improvements while maintaining the mill's existing production output.

2. Shutdowns, Closures & Curtailments

2.1 Sonoco to Close Two European Manufacturing Sites, Targeting Up to $20 Million in 2027 Savings

Sonoco announced plans to close two manufacturing sites in Europe as part of its continuing productivity and cost-reduction programme. The closures are expected to generate annual savings of approximately US$15 million to US$20 million in 2027.

The development forms part of the company's broader Productivity and Performance Programme, which has a savings target of US$150 million to US$200 million. Sonoco reported US$16 million in programme savings during the third quarter of 2026, bringing year-to-date savings to US$34 million and the annualised savings rate to US$51 million.

2.2 Tullau Pappen Shuts Down Two Production Sites, 90 Jobs Lost

German paperboard manufacturer Tullau Pappen shut down its production facilities in Rosengarten-Tullau and Trauchgau on 27 October 2026. The closures resulted in the loss of approximately 90 jobs.

The company had entered insolvency proceedings in September 2026. Its difficulties were associated with financial pressure from CO₂ allowance obligations, high energy and raw-material costs, labour expenses and competitive market conditions.

The shutdown marks the end of production at both locations.

2.3 Metsä Board to Suspend White Kraftliner Production During Extended Kemi Mill Shutdown

Metsä Board plans to suspend white kraftliner production during an extended maintenance shutdown in the fourth quarter of 2026.

The shutdown is connected to renewal work on the cooking process at Metsä Fibre's Kemi bioproduct mill. Andritz is identified as the supplier of the wood-chip feeding system associated with the work. The precise duration of the production interruption was not specified.

The company also faces a market environment in which seasonal paperboard volumes are lower, prices have been rising and energy costs remain a concern.

3. M&A, Partnerships & Joint Ventures

3.1 Valmet to Acquire Tieto’s MES Business to Expand Pulp and Paper Automation Portfolio

Valmet plans to acquire Tieto's Manufacturing Execution System (MES) business, including its TIPS MES and Order to Cash solutions.

The business serves approximately 300 pulp and paper production sites and generates annual revenue of around €32 million. Its software connects production planning, manufacturing processes and real-time operational control.

The acquisition is intended to strengthen Valmet's automation and digital-services portfolio. The company sees MES technology, artificial intelligence and software-as-a-service solutions as important components in the development of increasingly autonomous mills.

3.2 UPM Sets October 31 Date for Plywood Business Demerger as WISA Group Prospectus Supplement Approved

UPM announced 31 October 2026 as the registration date for the transfer of its plywood business assets and liabilities to WISA Group Plc.

The prospectus supplement for the planned demerger was approved and includes unaudited carve-out financial information for the nine months ended 30 September 2026, an updated outlook and other amendments.

WISA Group applied for listing on Nasdaq Helsinki on 22 October. Trading was expected to begin around 2 November under the ticker symbol WISA.

4. Price Changes & Market Pricing

4.1 Rengo to Revise Prices for Paperboard and Packaging-Related Products

Rengo announced price revisions for paperboard and related packaging products in response to continued increases in operating costs.

The company cited cost increases since July 2025, including pressure associated partly with developments in the Middle East. Inflation, interest rates and geopolitical tensions have also contributed to the difficult cost environment.

The announcement follows earlier price revisions affecting flexible packaging and heavy-duty packaging products.

4.2 Suzano Announces US$50 per Tonne Pulp Price Increase in Europe and the Americas from November

Suzano announced a US$50-per-tonne pulp price increase for customers in Europe and the Americas, effective from November 2026.

Following the increase, the reported European list price will rise to US$1,410 per tonne, from US$1,360 per tonne in October.

The announcement follows earlier price adjustments during October, including a US$50-per-tonne increase in the Americas and a US$20-per-tonne increase in Asia.

5. Financial Results & Market Performance

5.1 Ence Posts More Than €10 Million in Third-Quarter Profit as Pulp Prices and Cost Cuts Support Recovery

Ence reported a third consecutive-quarter performance improvement and more than €10 million in net profit for the third quarter of 2026, marking its second consecutive profitable quarter.

EBITDA reached €46 million, an increase of 70% compared with the previous quarter. The average European bleached hardwood kraft pulp price was €1,195 per tonne, up 35% year on year. Ence also reported a cash production cost of €463 per tonne.

Efficiency measures generated annualised savings of €14.7 million. Speciality pulp represented 32% of production during the first nine months, with the company targeting a share above 62% by 2028. Its renewable energy business generated EBITDA of €12.7 million.

5.2 Valmet Q3 2026 Results: Orders Jump 30% to €1.41 Billion as Comparable EBITA Rises 6%

Valmet reported third-quarter 2026 orders received of €1.408 billion, an increase of 30%. Net sales rose 5% to €1.36 billion.

Comparable EBITA increased 6% to €169 million, representing a margin of 12.4%. Orders in the Biomaterials and Environmental Solutions segment rose 37% to €1.009 billion, while Process Performance Solutions orders increased 16% to €399 million.

Packaging and Paper orders reached €630 million, more than double the comparable level. Reported profit declined 18% to €70 million, affected by restructuring and financing costs following the Severn acquisition. Operating cash flow was €210 million. Valmet maintained its guidance.

5.3 UPM Q3 2026 Results: Comparable EBIT Falls 8% to €131 Million as Customer Destocking Weighs on Sales

UPM reported comparable EBIT of €131 million in the third quarter of 2026, compared with €142 million a year earlier. Sales declined slightly to €2.202 billion from €2.226 billion.

Customer destocking weighed on sales volumes, while variable costs also affected performance. Despite the lower quarterly operating result, operating cash flow increased to €420 million from €218 million.

For January to September, comparable EBIT rose 10% to €601 million. The company also continued to focus on its Leuna biorefinery development and the separation of its plywood business.

5.4 Smurfit Westrock Reports Third Quarter 2026 Results

Smurfit Westrock reported third-quarter net sales of US$8.161 billion, compared with US$8.003 billion in the same period of the previous year. Net income was US$219 million, down from US$245 million.

Adjusted EBITDA declined 7% to US$1.205 billion, with an adjusted EBITDA margin of 14.8%. Operating cash flow was US$874 million.

The company cited energy, freight and input-cost inflation, along with lower converting volumes. Regional adjusted EBITDA included US$760 million in North America, US$379 million in EMEA and Asia Pacific, and US$126 million in Latin America.

Full-year EBITDA guidance was approximately US$4.7 billion. The company estimated additional freight and energy costs of around US$700 million, while expecting pricing benefits to support performance in 2027.

5.5 International Paper Reports Third Quarter 2026 Results

International Paper reported third-quarter sales of US$6.20 billion, compared with US$6.22 billion in the prior-year period. EBITDA was US$843 million, against US$859 million.

Adjusted operating earnings were US$197 million, compared with an adjusted operating loss of US$224 million in the previous-year period. However, the company reported a US$1.10 billion loss from continuing operations, primarily reflecting a US$1.38 billion non-cash goodwill impairment related to Packaging Solutions EMEA.

North American operating profit was US$427 million. Free cash flow was negative US$267 million. The company also continued preparations for the planned separation of its EMEA packaging business into DS Smith plc.

5.6 ANDRITZ Achieves High Order Intake and Strong Revenue Growth in Q3 2026

ANDRITZ reported third-quarter revenue of €2.06 billion, up 9.2%, while order intake reached €2.17 billion. This marked the eighth consecutive quarter in which orders exceeded €2 billion.

Comparable EBITA rose 10.3% to €184.9 million, representing a 9% margin. Net income increased 14.4% to €127.3 million, and the order backlog reached a record €12.73 billion.

Hydropower orders increased 34.2%. In Pulp & Paper, orders declined 24.5%, although revenue rose 8.8%. ANDRITZ maintained its full-year revenue outlook of €8.0 billion to €8.3 billion and its margin outlook of 8.7% to 9.1%.

5.7 Huhtamaki Reports Higher Profitability in Q3 2026, Driven by Strong Flexible Packaging Performance

Huhtamaki reported third-quarter net sales of €1,017.8 million, an increase of 5%. Adjusted EBIT rose 10% to €110.5 million, lifting the margin to 10.9% from 10.3%.

Flexible Packaging was a key contributor. Segment sales increased 17% to €363.1 million, while EBIT rose 24% to €38.4 million. Fiber Packaging EBIT increased 22% to €14.1 million.

North American profitability remained under pressure, with EBIT declining 61% amid weak demand and higher transport and energy costs. Huhtamaki continues to target an adjusted EBIT margin of 10% to 12%.

5.8 West Fraser Reports Third Quarter 2026 Results Amid Challenging Market Conditions

West Fraser reported third-quarter sales of US$1.363 billion and a net loss of US$80 million. EBITDA was US$38 million, compared with US$59 million in the second quarter.

The company faced weak lumber and engineered wood markets, lower prices, higher resin and diesel costs, and challenging housing conditions. Segment EBITDA included US$34 million for lumber, a US$4 million loss in North American engineered wood products and US$4 million in Europe engineered wood products.

West Fraser also reported indefinite curtailments at its Huguley OSB facility in Alabama and Leola lumber facility in Arkansas. The changes reduce capacity by approximately 500 million square feet of OSB and 225 million board feet of Southern Yellow Pine. Liquidity stood at approximately US$1.2 billion.

5.9 Lenzing Group Provides Update on Shareholder Structure Following Completion of Capital Increase

Lenzing Group provided an update on its shareholder structure following completion of a capital increase.

B&C Group holds 39.6% of voting rights, while Suzano International Trade GmbH holds 12.6%. Together with the wider syndicate, the holdings represent approximately 52.25% of voting rights.

Suzano Holding separately holds 0.80% of shares, while Goldman Sachs holds 5.86%. Lenzing's CFO welcomed the continued commitment of its shareholders.

5.10 Mercer International Considers Chapter 11 Filing as Debt Talks Intensify

Mercer International is considering a possible Chapter 11 filing or other recapitalisation options as discussions with creditors intensify. The possibility was reported by Bloomberg on 21 October 2026; no final decision had been announced.

The company's cash position declined to US$78.8 million at 30 June 2026, compared with US$186.8 million at the end of 2025. Mercer reported a first-half net loss of US$128 million and long-term debt of approximately US$1.3 billion.

Bondholders representing more than 75% of two bond issues—the 12.875% notes due in 2028 and the 5.125% notes due in 2029—were involved in the debt discussions. Texas was reported as a possible filing location, but the company had not made a final decision.

6. Sustainability & Circular Economy

6.1 APP’s Regenesis: Can Forest Conservation and Industrial Growth Move Together?

Asia Pulp & Paper's Regenesis programme presents the company's approach to combining industrial development with forest conservation and restoration.

APP has committed US$30 million annually for 10 years and says the programme protects approximately 600,000 hectares of forest. It has also reported restoring 38,000 hectares of peatland, generating 58% of its energy from renewable sources and reducing landfill waste by 92%.

The programme covers forest protection, peatland restoration, biodiversity, community engagement, recycled fibre and alternatives to plastic. The wider discussion also highlights the importance of transparency and independent verification when assessing sustainability commitments and outcomes.

6.2 FSC International Director General Subhra Bhattacharjee Visits Sofidel’s Headquarters in Porcari

FSC International Director General Subhra Bhattacharjee visited Sofidel's headquarters in Porcari, Italy, accompanied by FSC Italia President Maria Rita Gallozzi and other representatives.

The visit took place in the context of FSC Italia's 25th anniversary and focused on forest certification and responsible sourcing in the tissue industry. Sofidel CEO Luigi Lazzareschi and members of the company's senior leadership hosted the delegation.

The meeting provided an opportunity to discuss the role of certification in promoting responsible forest management and supply-chain practices.

7. Products & Innovation

7.1 Waites Introduces Waites Conveyance™ to Help Keep Conveyors Running and Products Moving

Waites introduced Waites Conveyance™, a monitoring and analyst service designed to identify potential conveyor-system failures before they cause unplanned downtime.

The service monitors components such as rollers, bearings and gearboxes, helping industrial operators identify developing problems and plan maintenance.

Waites reports that its technology is used across more than 400 material-handling facilities, with deployments reaching as many as 25,000 sensors at a single site.

7.2 Holmen Launches New Incada Duo, a UK-Produced High-Performance Paperboard for High-Caliper Packaging

Holmen launched Incada Duo, a laminated folding boxboard produced at its Workington facility in the United Kingdom.

The product is available in grammages from 430 to 710 gsm and is made using fresh fibre with traceable origins. It is designed for high-caliper packaging applications requiring stiffness, thickness and strong printing performance.

The board is approved for food-contact applications and is designed to provide taint and odour neutrality, with coated outer layers to support packaging quality.

8. Leadership & Corporate Updates

8.1 UPM Appoints Sangeeta Pandey as Executive Vice President of Human Resources

UPM appointed Sangeeta Pandey as Executive Vice President of Human Resources, effective 1 January 2027. She will be based in Helsinki and report to President and CEO Massimo Reynaudo.

Pandey will join UPM's Group Executive Team. Her previous experience includes roles at Metro AG from 2018 to 2025 and AkzoNobel from 2009 to 2018, as well as positions at Mahindra, Xerox and Bharat Petroleum/Bharat Shell.

9. Operations & Supply Chain

9.1 Statkraft and Borregaard Enter into 10-Year Power Supply Agreement

Statkraft and Borregaard signed a 10-year power supply agreement covering 445 GWh of electricity. The contract begins on 1 November 2026 and runs through the end of 2036.

The contracted volume represents approximately 5% of Borregaard's electricity consumption. The agreement is intended to reduce the company's exposure to spot-market price fluctuations, support a lower average electricity price and provide greater predictability as Borregaard advances electrification and greenhouse-gas reduction initiatives.

It supplements a previous power agreement signed in 2019.

10. Incidents, Safety & Environmental Events

10.1 Nippon Dynawave Fined $77,800 Over Worker Safety Violations at Washington Paper Mill

Nippon Dynawave was fined US$77,800 over worker-safety violations at its paper mill in Longview, Washington.

The penalties relate to a March incident in which a worker fell into a four-foot sinkhole containing pulp at approximately 145°F (63°C). The incident occurred after a valve was left open, resulting in a pulp spill.

The cited safety concerns involved inadequate protection against thermal hazards and the risk of workers becoming engulfed in hazardous material.

11. Policy, Regulation & Trade

11.1 N.B. Power’s Electricity Export Policy Puts Irving Paper Mill Closure at Risk as Energy Costs Set to Rise by $10 Million

New Brunswick Power's electricity export policy has raised concerns about the future operating costs of Irving Paper's mills in Saint John, Canada.

Following an April ruling by the Energy and Utilities Board, NB Power can sell surplus electricity to external markets. J.D. Irving expects the policy change to increase its annual electricity costs by approximately C$10 million.

The company said discounted surplus electricity had supplied around 75% of the power used by its two Saint John mills. The increased costs could put the east Saint John mill at risk of closure. The provincial government has defended the electricity policy.

12. Awards, Certifications & Recognition

12.1 Essity Awarded EcoVadis Platinum

Essity received the EcoVadis Platinum medal after achieving a sustainability score of 90 out of 100, compared with 88 in 2025.

Platinum is EcoVadis' highest medal level and places Essity among the top 1% of companies assessed. The evaluation covers areas including environment, labour and human rights, ethics and sustainable procurement.

12.2 Hinojosa Packaging Group Renews EcoVadis Gold Medal with Improved Sustainability Score

Hinojosa Packaging Group renewed its EcoVadis Gold medal with an improved score of 84, up from 80 in the previous assessment. The result places the company among the top 3% of assessed companies.

Its sustainable procurement score reached 90, an improvement of 25 points, while its environmental score increased to 92 from 89. The company's reported work includes initiatives relating to waste management, renewable energy, emissions reduction and raw-material sourcing.