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Stay updated with the latest developments in the global pulp and paper industry
Paper mill closures continue accelerating through 2026 as graphic paper demand declines and producers face margin pressure from energy costs, regulation, and Chinese capacity expansion. Industry estimates indicate 2.5 to 3.5 million tonnes of permanent paper and paperboard capacity will exit production globally during 2026, with North America and Europe leading the contraction (Fastmarkets RISI 2026 closure tracker, AF&PA Q1 2026 outlook).
A fundamental shift is reshaping the global pulp and paper industry as Chinese manufacturers expand capacity faster than domestic demand absorbs it. Chinese paper exports rose approximately 23 percent in the first half of 2025, redirecting traditional trade flows and pressuring Western producers to consolidate, close mills, or shift portfolios toward packaging and tissue (Fastmarkets RISI 2025 China outlook, AF&PA Q1 2026 outlook).
The pulp and paper industry is positioning itself at the forefront of industrial decarbonization. Recent pilot projects have demonstrated that pulp mills can capture carbon dioxide with remarkable efficiency, while the unique nature of their emissions creates opportunities for genuine atmospheric carbon removal rather than mere emissions reduction.
The shift away from plastic packaging is creating substantial opportunities for paper coating manufacturers. Market analysts project the global pulp and paper coatings sector will grow from $5.4 billion in 2024 to $8.2 billion by 2033, driven by e-commerce growth, regulatory changes, and consumer preferences for sustainable materials.
Finnish forest products company UPM closed 2025 with improved fourth-quarter performance and robust cash generation. The company also revealed plans for a significant joint venture with Sappi that would reshape the European graphic paper landscape.
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