Pulp and Paper

Sappi Europe to Close Two Paper Machines at Alfeld Mill in Germany

Sappi Alfeld MillJuly 9, 2025 - Sappi Europe on July 8 announced the initiation of a consultation process at its Alfeld Mill in Germany as part of a proposed partial asset restructure. This step is being taken in response to sustained financial challenges and a structural decline in demand across Europe.

The Alfeld mill produces coated and uncoated packaging and specialty papers, along with chlorine-free bleached pulp. The mill houses five paper machines.

The board produced on PM1 is double coated on one and two sides on an offline coating line. PM2 to PM5 produce single-sided smooth papers. PM2, PM3 and PM4 also have inline coating units and calendaring capabilities with paper surfaces suitable for the specialty papers segment.

Over recent years, Sappi has taken considerable steps to improve the financial performance of its Alfeld Mill. However, despite reducing losses significantly, the complexity of the current product and asset portfolio has limited the mill's ability to operate sustainably under current and foreseeable market conditions.

To ensure long-term viability, the proposed restructure includes the potential closure of Paper Machine 1, Paper Machine 4, Offline Coater 2, and Sheet Finishing. These changes would allow Sappi to align capacity with shifting market demand, reduce operational complexity, and concentrate production on the most profitable and in-demand segments.

"As we respond to evolving market expectations for lower-carbon, resource-efficient materials and work to ensure a competitive and resilient future for our European operations, these difficult decisions are necessary," said Marco Eikelenboom, CEO of Sappi Europe. "This step supports our broader commitment to the Clean Industrial Deal, by accelerating the decarbonisation of our mill and adapting our product portfolio to better meet future customer needs and regulatory requirements. By focusing on our most efficient assets, we can strengthen our service offering, enhance sustainability and secure long-term regional viability."

The proposed restructure supports Sappi Europe's strategy of optimising its asset base to match evolving customer needs and sustainability goals.

The consultation process may affect up to 200 positions at the Alfeld Mill. Sappi remains committed to supporting employees throughout this process and will work closely with employee representatives to find appropriate solutions.

Headquartered in Brussels, Belgium, Sappi Europe is the leading European producer of coated graphic paper as well as packaging and speciality papers.

SOURCE: Sappi Europe

 

Greif

PCA Agrees to Buy Greif Containerboard Business for $1.8 Billion

July 1, 2025 (Press Release) - Packaging Corporation of America (NYSE: PKG) today announced that it has entered into a definitive agreement to purchase the containerboard business of Greif, Inc. for $1.8 billion in cash. The transaction is expected to close by the end of PCA's third quarter, subject to certain customary conditions and regulatory approvals.

The Greif containerboard business includes two containerboard mills with approximately 800,000 tons of production capacity and eight sheet feeder and corrugated plants located across the United States. The business generated approximately $1.2 billion in sales and $212 million of earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ended April 30, 2025 (the LTM period).

Synergies are estimated to generate pre-tax benefits of approximately $60 million and are expected to be fully realized within two years after closing. The synergies are projected to come from improved operational and production capabilities and efficiencies at the mills, increased integration, mill grade optimization and lower transportation costs. Approximately one half of the benefits are expected by the end of the first year with the remainder being received by the end of the second year.

The purchase price represents a multiple of 8.5X LTM EBITDA and, with $60 million in benefits from synergies, the purchase price represents a multiple of 6.6X LTM EBITDA. The acquisition is expected to be accretive to earnings immediately.

PCA is expected to finance the transaction with $1.5 billion of new debt and cash on hand. PCA's pro forma leverage ratio (net debt to EBITDA) will be approximately 1.7X after completion of the transaction.

PCA CEO Mark Kowlzan said, "This acquisition furthers PCA's profitable growth strategy. The mills nicely complement PCA's system and will provide containerboard to support PCA's continued corrugated products growth. We expect to achieve significant synergies with minimal capital investment through our operational expertise and will identify even more opportunities within the combined system for future high return investments to grow with our corrugated and sheet feeder customers. We will continue to generate significant cash flows and value for our shareholders."

PCA President Tom Hassfurther added, "We have a great deal of respect for Greif and are very pleased to have reached agreement to acquire this business. Greif's people have developed deep and lasting relationships with their customers, who we look forward to serving with Greif's well capitalized facilities. It is a very strong cultural fit with us in terms of safety, innovation, growth and dedication to serving the needs of customers. We will apply the sales, customer service and operational expertise of the combined organization to even better serve our corrugated and sheet feeder customers and achieve additional growth and profitability."

BofA Securities provided financial advice to PCA and provided committed financing for the transaction.

PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates eight mills and 86 corrugated products plants and related facilities.

SOURCE: Packaging Corporation of America (PCA)

 

Port Huron - PM8

The Legacy Paper Group Announces Plans to Restart PM8 at Port Huron Mill

June 11, 2025 - The Legacy Paper Group, a subsidiary of BMI Group US, today announced plans to restart Paper Machine #8 (PM8) at its Port Huron facility in Michigan, bringing 30,000 tons of annual production capacity back online after a four-year shutdown.

The company did not disclose an approximate timeline for the restart.

The restart addresses growing market demand for sustainable, lightweight specialty papers used in food packaging and other critical applications.

"The fundamentals driving specialty paper demand have never been stronger," said Mark Bessette, Managing Director of The Legacy Paper Group. "Consumer behavior shifts accelerated by the pandemic, combined with intensifying focus on packaging sustainability, have created a significant supply-demand imbalance that PM8 is uniquely positioned to address."

The mill has operated continuously since 1888 under various owners including Port Huron Sulphite and Paper Co., Port Huron Paper, Pentair, EB Eddy Paper, and Domtar Specialty Papers. PM8 itself specializes in producing high-quality, ultra-lightweight papers for quick-serve restaurant packaging, candy wrappers, medical table covers, tissue overwraps, and other sustainable applications.

Market Dynamics Drive Restart Decision

The COVID-19 pandemic permanently altered consumer dining habits, with food delivery and takeout services experiencing sustained growth through platforms like Uber Eats, DoorDash, and Grubhub. This shift created enduring demand for functional, compliant packaging materials that meet the standards of leading global food brands.

Simultaneously, public scrutiny of packaging sustainability has intensified, particularly through social media channels. Paper-based packaging offers distinct advantages over plastic alternatives, providing renewable, biodegradable, and compostable solutions without the environmental concerns associated with oil-based plastics and microplastic pollution.

"Our customers are demanding sustainable packaging solutions that don't compromise on performance," Bessette said. "The specialty grades we'll produce on PM8 deliver both environmental benefits and the functional properties required for demanding food service applications."

The company noted that the restart of PM8 represents a strategic investment in the expanding lightweight food-grade paper sector. The facility's geographic location provides cost-effective access to key markets throughout the Midwest and Northeast, while established supply chains and experienced workforce enable rapid production ramp-up.

The Legacy Paper Group, a BMI Group US company, specializes in producing high-quality specialty papers for packaging and industrial applications. The Legacy Paper Port Huron Mill focuses on sustainable, lightweight paper solutions for food service, medical, and consumer markets.

SOURCE The Legacy Paper Group

 

Kimberly-Clark tissue products

Suzano and Kimberly-Clark Announce $3.4 Billion Joint Venture Partnership

June 5, 2025 - Suzano, the world's largest pulp producer, and Kimberly-Clark, a global leader in the consumer staples industry, today announced the creation of a US$3.4 billion joint venture focused on the manufacture, marketing and distribution of consumer and professional tissue products, such as toilet paper, napkins, paper towels and facial tissues in over 70 countries. Suzano will acquire a 51 percent interest in the new entity, with Kimberly-Clark holding a 49 percent interest.

Suzano will pay Kimberly-Clark US$1.734 billion in cash for its 51 percent stake at the closing of the transaction, subject to certain customary post-closing purchase price adjustments.

Closing of the transaction is contingent on, among other things, approval by regulatory and other governmental authorities, fulfillment of customary conditions precedent for transactions of this nature, and completion by Kimberly-Clark of a corporate reorganization of its Consumer Tissue and Professional business unit.

The transaction is expected to close in mid-2026 and involves approximately 9,000 employees.

The new business will be a company incorporated in the Netherlands and will include 22 manufacturing facilities located in 14 countries across Europe, Asia, including Southeast Asia, the Middle East, South America, Central America, Africa, and Oceania. Collectively, these facilities have an installed capacity to produce approximately 1 million tonnes of tissue a year. The assets to be included in the new joint venture generated net sales in 2024 of approximately US$3.3 billion.

Kimberly-Clark will retain its consumer tissue and professional businesses in the United States and its interests in existing joint ventures in Mexico, South Korea and Bahrain, among other countries.

Beto Abreu, CEO of Suzano, said, "This new company brings together two global players that are leaders in their respective markets, with complementary capabilities that combine Suzano's industrial expertise and operational management efficiency with Kimberly-Clark's know-how in brand management, marketing and commercialization of both regional and global brands, as well as its extensive experience in managing operations across multiple regions worldwide.

"Both companies share strong organizational cultures rooted in innovation and sustainability. We look forward to combining great talent, good assets, and tremendous brands that are trusted by consumers."

Marcos Assumpção, CFO of Suzano, said, "This transaction reflects Suzano's disciplined approach to capital allocation with value creation and fully in line with our financial policy. Moreover, the partnership with Kimberly-Clark ensures business operational continuity and an alignment towards operational efficiency opportunities, mitigating risks typically encountered during international expansion."

Mike Hsu, Chairman and CEO at Kimberly-Clark, said, "This transaction represents a powerful step forward in Kimberly-Clark's transformation journey. We are pleased to enter into a strategic partnership with Suzano, a leader in its field, and we look forward to working closely together to deliver on the significant opportunities ahead for our International Family Care and Professional Business."

More than 40 regional brands of Kimberly-Clark´s International Family Care and Professional portfolio will be transferred into the joint venture, that will also enter into a long-term license with the new company for use of its global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva, and Kimberly-Clark Professional.

The transaction is aligned with Suzano's long-term strategy of value-accretive growth with financial discipline, focusing on scalable businesses where the company can leverage its strength in operational efficiency.

Suzano is currently a leading player in toilet paper in Brazil, following the 2023 acquisition of Kimberly-Clark's Brazilian tissue assets and brands.

Suzano is also in the process of building a new R$650 million (approximately US$115 million) tissue paper mill at its site in Aracruz in the state of Espírito Santo, which will add 60,000 tonnes of annual capacity to the company's Consumer Goods Business Unit.

Luis Bueno, Executive Vice President of Consumer Goods and Corporate Affairs at Suzano, said, "We have an excellent understanding of Kimberly-Clark's culture and internal processes, thanks to our 2023 acquisition of the Brazilian tissue business. We have already been able to achieve significant efficiency gains in these operations, which we are confident can be replicated in other regions.

"Our ability to achieve this goal is intrinsically tied to the tremendous quality of the talent within Kimberly-Clark ´s team, who have helped develop and grow iconic, innovative and trusted brands that are a part of the everyday lives of hundreds of millions of people around the world."

At closing of the transaction, Suzano and Kimberly-Clark will enter into a joint venture agreement establishing certain rights and obligations related to the management, control, operation, shareholding, and other matters concerning the joint venture. It will have a Board of Directors with five members, three of whom will be appointed by Suzano and two of whom will be appointed by Kimberly-Clark. The Transaction also includes a call option for Suzano to acquire Kimberly-Clark's 49% interest in the new company.

About Suzano

Suzano is the world's largest pulp supplier, a major paper and packaging producer in the Americas, and one of Brazil's biggest employers. Founded in Brazil over 100 years ago, today Suzano operates across Latin America, North America, Europe and Asia.

About Kimberly-Clark

Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Its portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries.

SOURCE: Hawthorn Advisors (for Suzano)

 

Joutseno pulp

Metsä Fibre Taking Temporary Downtime at Its Joutseno Pulp Mill in Finland

June 9, 2025 - Metsä Fibre is initiating a temporary production shutdown at its Joutseno pulp mill in Lappeenranta, Finland, starting today, June 9.

The shutdown is the result of low order volumes from Asia.

"Our Joutseno pulp mill will be shut down until further notice," said Ismo Nousiainen, CEO of Metsä Fibre. "This temporary production shutdown enables us to adjust our pulp inventory levels to match the low order volumes from Asia and the uncertain market situation."

The Joutseno pulp mill has the capacity to produce 690,000 tonnes per year of softwood pulp. The mill employs about 190 people.

"We are actively monitoring the development of the market situation, especially in the Asian markets, and will determine the duration of the shutdown and the timing of the mill's restart based on how the situation evolves. Wood supply and other operational conditions are well in place for resuming production." Nousiainen said.

Metsä Fibre, a member of the Metsä Group, is a leading producer of wood-based bioproducts, such as pulp, sawn timber, biochemicals and?bioenergy. The company produces pulp and bioproducts at four mills and sawn timber products at four sawmills in Finland.

SOURCE: Metsä Fibre

 
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