Pulp & Paper Industry Weekly Roundup: Investments Accelerate, Mill Closures Raise Concerns, and Sustainable Packaging Gains Momentum October 2026 | Weekly Edition 3

The global pulp, paper, packaging and forest products industry is navigating a period of strategic investment, operational restructuring and evolving market demand. The third weekly edition of October 2026 highlights new manufacturing capacity, uncertainty surrounding mill operations, potential acquisitions, mixed quarterly financial results and continued innovation in sustainable packaging.

From a major pulp mill project in China and packaging investments in Australia to mill closure concerns in Canada and Sweden, the week's developments reflect an industry balancing growth opportunities with cost pressures, changing customer requirements and sustainability commitments.

1. Investments, Expansions and New Projects: Companies Strengthen Production and Market Reach

Investment in manufacturing capacity, advanced technology and commercial infrastructure remained a prominent theme during the week.

ITT Goulds Pumps announces $31 million investment in Memphis

ITT Goulds Pumps plans to invest US$31 million in a new manufacturing and distribution centre in Shelby County, Memphis, Tennessee. The project is expected to create 57 jobs and expand the company's operational capacity to serve customers across North America. The new facility will address capacity constraints at its existing distribution centre in Southaven, Mississippi.

Valmet supports Century Sunshine's new pulp mill in China

Valmet is supplying key process technologies for Century Sunshine's new pulp mill in Rizhao, Shandong province. The delivery includes cooking and fibreline systems, evaporation, a recovery boiler, ash treatment and a white liquor plant. The order is valued at more than €100 million, while the mill is expected to start operations in June 2028.

The project forms part of Century Sunshine's three-phase Paper-for-Plastic investment programme, which targets 2.65 million tonnes of additional annual paper production to support paper-based alternatives to plastics.

Visy invests $30 million in Western Sydney packaging production

Australian packaging manufacturer Visy has invested US$30 million in a new 2.8-metre-wide corrugator at its Smithfield board factory. The upgrade is expected to increase corrugated board output by 33%. Real-time monitoring and digital process optimisation are intended to improve production speeds, reduce changeover times and deliver more consistent board quality.

SKF opens ceramic processes laboratory in the Netherlands

SKF has opened a ceramic processes laboratory at its research centre in Houten to accelerate the development and commercialisation of hybrid bearings. Combining steel rings with ceramic rolling elements, the technology offers improved electrical insulation, lower weight and the potential to reduce friction by up to 50%. The facility strengthens the company's research capabilities across the manufacturing process.

Södra expands its US commercial presence

Swedish forest industry group Södra is establishing a sales office near Boston, Massachusetts, alongside a logistics partnership. The office will support sales of pulp and sawn timber, improve customer responsiveness and strengthen the company's position in North America.

Together, these developments demonstrate how industrial suppliers and forest products companies are investing in capacity, technology and customer access to support future growth.

2. Shutdowns, Closures and Curtailments: Employment and Mill Viability Under Pressure

While investment continues elsewhere, several facilities face significant operational challenges.

Nackawic pulp mill workers call for a solution ahead of shutdown

Workers at AV Group NB's Nackawic pulp mill in New Brunswick, Canada, have rallied with union representatives and community supporters as the facility faces a temporary shutdown. The company announced its intention to idle the mill amid difficult market conditions and other challenges.

Unifor has called for government intervention and a plan to attract investment. The union has highlighted the potential consequences for mill employees, forestry workers, truckers and contractors. The situation remains uncertain as stakeholders seek options to maintain operations.

Stora Enso confirms permanent closure of Gruvön CLT production

Stora Enso has completed negotiations on the permanent closure of its cross-laminated timber (CLT) production unit at Gruvön in Sweden, with closure planned by the end of 2026. Approximately 80 positions will be affected.

The company cited slower-than-expected market growth, rising wood costs and relatively high fixed production costs. It has said it will explore redeployment opportunities, relocation assistance and career transition support for affected employees.

The two developments underline the importance of investment, cost competitiveness and market demand in determining the future of industrial facilities and the communities that depend on them.

3. Mergers, Acquisitions, Partnerships and Ownership Changes

Corporate transactions continue to reshape the tissue, paper distribution, forestry and recycled-fibre segments.

APP and CVC consider bids for Essity's consumer tissue business

Asia Pulp & Paper (APP) and CVC Capital Partners are evaluating potential bids for Essity's Consumer Tissue business, reportedly valued at approximately €3 billion. Royal Golden Eagle has also been identified as a potential bidder in reports cited by the newsletter.

The business includes toilet paper, tissues and napkins sold under brands such as Cushelle, Tempo and Tork. Discussions remain ongoing, and Essity has not committed to a sale.

Central National Gottesman to acquire Omaha Paper Company

Central National Gottesman's Lindenmeyr Munroe division plans to acquire Omaha Paper Company, also known as OPC Direct. The acquisition is expected to strengthen CNG's Midwest distribution network and broaden its offering of paper, packaging materials, equipment and related supplies.

The transaction supports the distributor's strategy of expanding its North American reach and strengthening customer relationships.

Orb ias seeks approval to acquire Mondi's closed Bulgarian paper mill

Bulgarian investment company Orbias has sought regulatory approval to acquire indirect control of the local Mondi unit that owns the Stamboliyski paper mill. The facility, which specialised in kraft paper, has been closed since a fire in 2024.

The proposed transaction remains subject to regulatory review, including consideration of its potential impact on competition.

CMPC agrees to sell 60,000 hectares of Chilean forestland

Chilean pulp and forestry group Empresas CMPC has agreed to sell approximately 60,000 hectares of forestland in the Maule region to Bosques San Pedro, associated with J.P. Morgan Natural Capital, for US$365.5 million, subject to contractual adjustments.

The agreement includes a long-term timber-supply arrangement under which CMPC will purchase wood from the transferred properties to support its cartonboard operations. Completion and property registrations remain outstanding.

Sustana sold to Hivest Capital Partners

North American recycled-fibre and paper producer Sustana has been sold to European private equity firm Hivest Capital Partners. Sustana operates mills in Québec and Wisconsin and eight recovered-paper collection facilities across the United States and Canada.

Its products serve foodservice packaging, printing, publishing and tissue markets. The ownership transition is intended to provide a stronger financial foundation for future investment, although financial terms and the closing date were not disclosed in the newsletter.

4. Financial Results and Market Performance: Mixed Signals Across the Industry

Third-quarter results reveal a varied operating environment. Packaging businesses in several markets reported growth, while some paper and tissue producers continued to face weaker demand, cost inflation or restructuring pressures.

ABB reports strong growth despite uneven pulp and paper demand

ABB reported a 40% year-on-year increase in orders to US$12.055 billion and 14% revenue growth to US$9.701 billion in the third quarter of 2026. Operational EBITA increased 24% to US$2.026 billion.

However, demand across process industries remained mixed. ABB's Motion business reported strength in pulp and paper demand, while its Automation business continued to experience weaker demand in the sector.

Sonoco reports a US$732 million quarterly loss

Sonoco recorded a net loss of US$732 million, compared with a profit of US$123 million a year earlier. The result primarily reflected a non-cash goodwill impairment charge of US$829 million. Net sales declined 4.2% to US$2.04 billion.

Industrial Paper Packaging performed relatively well, with sales increasing 5.2% to US$646 million and North American uncoated recycled board trade tonnage growing 10%. Sonoco revised its full-year adjusted earnings-per-share outlook to US$5.30–US$5.50.

Packaging Corporation of America benefits from packaging growth

Packaging Corporation of America reported third-quarter sales of US$2.6 billion, compared with US$2.3 billion a year earlier. Net income rose to US$262 million from US$225 million.

Its Packaging segment drove growth through favourable pricing, product mix, higher shipment volumes and contributions from acquired Greif operations. The Paper segment, however, experienced a 2.5% year-on-year decline in sales volume. Higher freight, fibre and energy costs remain potential pressures on future margins.

Rottneros returns to positive EBITDA

Swedish pulp producer Rottneros reported third-quarter EBITDA of SEK 26 million, recovering from a loss of SEK 21 million in the same period last year. Lower pulpwood prices reduced variable costs by SEK 51 million.

Pulp production increased approximately 9% to 79,300 tonnes, although revenue declined slightly and the company continued to report a net loss. Industry overcapacity and competition from Chinese pulp suppliers remain challenges.

Billerud returns to quarterly profitability

Billerud reported a net profit of SEK 212 million, compared with a loss of SEK 63 million a year earlier. Sales increased 3% to SEK 10.166 billion, while Europe's EBITDA margin reached 12%, its highest level since the first quarter of 2025.

Higher shipment volumes, price increases, cost savings and lower pulpwood costs supported the improvement. The company is continuing to upgrade its mills to expand packaging-material production.

Essity grows sales as profitability weakens

Essity's third-quarter sales increased 4.1% to SEK 36.06 billion, but adjusted EBITA declined 7% to SEK 4.725 billion. Higher raw-material and energy costs weighed on profitability, while organic sales growth was slightly negative.

Personal Care and Health & Medical performed relatively well, while Consumer Tissue and Professional Hygiene faced weaker conditions. Essity also agreed to acquire Kenvue's Brazilian feminine care business, including Carefree, Sempre Livre and o.b., with completion expected in the second quarter of 2027, subject to regulatory approval.

Södra returns to reported operating profit

Södra recorded operating profit of SEK 267 million, compared with a loss of SEK 360 million in the prior-year quarter. Sales increased 2% to SEK 6.492 billion.

However, the result included a SEK 288 million capital gain from the sale of its stake in Sunpine. Excluding that gain, Södra recorded an operating loss of SEK 21 million. Its pulp business improved, while sawn timber remained under pressure. Cost savings and efficiency improvements remain central to its recovery strategy.

Norske Skog benefits from a property sale

Norske Skog reported EBITDA of NOK 448 million in the third quarter, compared with NOK 73 million in the second quarter. Earnings benefited significantly from a NOK 338 million gain on a property sale to Norwegian Nuclear Decommissioning.

The publication paper segment performed strongly, but packaging paper production at Golbey was affected by operational problems. The company plans to restore Golbey to full capacity during 2027 and rebuild PM6 at Saugbrugs, with operations expected to begin in the first half of 2028.

SCA reports stronger containerboard performance

Svenska Cellulosa Aktiebolaget (SCA) reported third-quarter sales of SEK 5.248 billion, up 5% year-on-year, and EBITDA of SEK 1.631 billion. Containerboard sales increased 12% to SEK 1.973 billion, while containerboard EBITDA more than doubled to SEK 446 million.

Lower planned maintenance costs and stronger packaging demand supported performance, although the Wood and Pulp segments continued to face weaker prices and volumes.

Duni grows sales but faces margin pressure

Duni Group's third-quarter sales increased 3.1% to SEK 2.033 billion, supported by growth in Australia and sales of customers' own-brand products in Europe. Adjusted operating income fell 20.8% to SEK 133 million, while net profit declined to SEK 32 million.

Higher freight and fuel costs, restructuring expenses and an unfavourable European product mix affected profitability. The company is focusing on logistics efficiency, cost savings and product development as it prepares for 2027.

Overall, the results show that growth in packaging demand and selected pulp markets is helping some producers, but profitability remains vulnerable to input costs, operational disruptions and uneven demand.

5. Sustainability and the Circular Economy: Recycling Delivers Cost and Emissions Benefits

Sustainability initiatives are increasingly linked to manufacturing economics as companies seek to reduce fossil-fuel dependence, improve resource efficiency and increase recycled-fibre use.

Ssangyong C&B reduces tissue manufacturing costs using recycled materials

South Korean tissue manufacturer Ssangyong C&B is reducing manufacturing costs by approximately 20%–30% compared with virgin pulp through the use of recycled materials, including discarded milk cartons and waste corrugated cardboard.

Recycled-content products account for 50%–55% of its total output, and annual paper-carton recycling exceeds 3,000 metric tonnes. Supported by its ownership within APP's wider group, the company is also expanding exports to Southeast Asia.

Finland's pulp and paper industry cuts fossil CO₂ emissions by 85%

Finland's pulp and paper industry reduced fossil carbon dioxide emissions from 5.88 million tonnes in 1990 to approximately 0.90 million tonnes in 2025. Waste sent to landfill also fell by around 97% since 1992.

The improvements reflect energy efficiency measures and the replacement of fossil fuels with bioenergy. Environmental expenditure reached approximately €224 million in 2025. Despite progress in several areas, nitrogen oxide emissions remain a continuing challenge.

These developments illustrate how circular resource use and energy transition initiatives can support both environmental targets and industrial competitiveness.

6. Products and Innovation: Bio-Based Barriers Advance Paper Packaging

Innovation is helping manufacturers develop paper-based packaging with the performance required for food and other demanding applications.

UPM, Ingredion and Paramelt explore starch-based barrier technologies

UPM, Ingredion and Paramelt are collaborating to investigate plant-based starch barriers for recyclable paper food packaging. The work focuses on improving grease resistance and expanding the range of paper-based packaging structures available to converters and brand owners.

The collaboration combines UPM's packaging papers with Ingredion's starch-based barrier technologies and Paramelt's functional-coating expertise.

Archroma launches Erthana bio-based packaging platform

Archroma Packaging Technologies has launched Erthana, a platform designed to help paper, packaging and tissue manufacturers reduce reliance on fossil-based chemistries while maintaining product performance.

The initial portfolio includes Erthana OGB, a bio-based oil and grease barrier, and Erthana DSR, a bio-based dry-strength resin. Additional products are in development for expected introduction in 2027. The platform is also intended to support manufacturers responding to regulatory requirements, including the European Union's Packaging and Packaging Waste Regulation and Extended Producer Responsibility laws.

The two initiatives reflect growing interest in recyclable, bio-based packaging solutions that combine functional performance with circular-economy objectives.

7. Leadership and Corporate Updates: UPM Announces Senior Appointments

UPM appoints Aki Temmes as CFO and Petri Hakanen to lead UPM Fibres

UPM has appointed Aki Temmes as Chief Financial Officer and Petri Hakanen as Executive Vice President of UPM Fibres. Both appointments take effect on 1 January 2027, and both executives will report to President and CEO Massimo Reynaudo.

Temmes, currently Executive Vice President of UPM Fibres, will succeed Tapio Korpeinen, who is retiring at the end of 2026. The appointments mark a planned leadership transition within the company's executive team.

8. Operations and Supply Chain: Packaging Papers Strengthen While Printing-Writing Shipments Decline

Industry shipment data provides a further indication of diverging demand across paper grades.

AF&PA reports growth in September packaging paper shipments

The American Forest & Paper Association (AF&PA) reported that total packaging paper and specialty packaging shipments increased 2% in September 2026 compared with September 2025. Shipments for the first nine months of the year were up 4% year-on-year.

The operating rate for unbleached packaging papers reached 90.9%, the second-highest level recorded during 2026. Bleached food-wrapping shipments increased 1.9% year-on-year. Total packaging paper imports were up nearly 10% year-to-date, while imports of unbleached bag, sack and multiwall papers rose 24.2%.

AF&PA reports a decline in printing-writing paper shipments

In contrast, total printing-writing paper shipments fell 9% in September compared with the previous year. U.S. purchases of printing-writing papers increased 6% in August, while inventory levels declined 6% compared with July.

Net exports across the three main grades showed mixed results: uncoated free-sheet net exports fell 17%, coated free-sheet net exports increased 11%, and mechanical-paper net exports declined 20%.

The contrasting figures suggest that packaging papers continue to show greater resilience than printing-writing grades, although trade flows and individual product categories remain uneven.