Paper 360
Everyone knows a person who just seems to get things done; it could be your manager, it could be your mom (of course, with our industry’s propensity for family legacy, your manager might just be your mom). Here we present our editors’ take on the change-makers in our industry. That power for change doesn’t only reside in people; we also look at a few of the critical issues and innovations impacting today’s pulp, paper, tissue, and corrugating industries.
“Power” simply means possibility: having the resources and wherewithal to choose the path forward. The editors of Paper360° hope that this list proves to be a resource for readers, offering a glimpse of all the possibility the future may hold for the industries we serve. Check out this year’s exclusive list, then send us your own Power Players!
LEADERS
WALTER SCHALKA, SUZANO
After 11 years of dynamic leadership which saw Suzano become the world’s largest market pulp producer, Schalka is stepping down effective July 1. One of his final moves was set to be his biggest: the reported US$15 billion offer for International Paper (see Mergers & Acquisitions below for update). His very big shoes will be filled by Alberto Fernandez de Abreu, former CEO of RUMO, one of the region’s largest logistics operators.
MARK SUTTON, INTERNATIONAL PAPER
An oft-honored CEO who has transformed his company, it seems strangely fitting that Sutton is leaving IP as news swirls of a hostile takeover by Suzano—whose CEO is also stepping down. All this comes in the midst of IP acquiring DS Smith. Incoming CEO Andy Silvernail will have his hands full grappling with these deals while steering the company through its day-to-day business activities.
TONY SMURFIT, SMURFIT KAPPA (SKG)
With the highly publicized merger deal between SKG and WestRock expected to close in July this year (see Mergers & Acquisitions), Tony Smurfit is already a regular on our Power List. Even without the merger, SKG is a massive player in the industry, with 47,000 employees and over 350 production sites across 36 countries. The group recently released its Q1 stating a revenue of EUR2.7 billion (US$2.93 billion) with an EBITA margin of 18 percent.
TEGUH WIJAYA, APP
Wijaya, a Power List stalwart for the last 17 years, still holds the reins at industry giant Asia Pulp & Paper. It has been somewhat of a roller coaster ride over the decades, particularly when it comes to relationships with NGOs, but after numerous back-and-forths, it seems progress is finally being made. APP recently joined the World Business Council for Sustainable Development (WBCSD) and plans to achieve net zero emissions by 2050. Furthermore, talks continue with the Forest Stewardship Council (FSC) on the ongoing FSC Remedy Framework.
KEN LIU, ND PAPER
Named 2024’s TAPPI/PIMA Executive of the Year, Liu heads the daily operations for the US division of Nine Dragons Paper, the largest containerboard producer in Asia, with annual sales of US$10 billion. Headquartered in Illinois, ND Paper serves a global customer base that includes retailers, publishers, packaging converters and commercial printers. Liu’s modern perspectives (shared this year as part of TAPPICon 2024’s Executive Panel) show him to be one to watch as he shepherds ND’s North American growth push.
MILES ROBERTS, DS SMITH
Another company in the news and in our M&A section is DS Smith. Roberts has been at the helm of DS Smith for the last 13 years, during which time the company has grown into a giant in renewable packaging, particularly in Europe where it has made numerous acquisitions. The company itself is now being acquired by IP. In December of last year Roberts announced he will retire from the board as CEO by the end of 2025.
PRAVEEN SINGHAVI, BRACELL
Asian giant Royal Golden Eagle (RGE), has been investing heavily in Brazil, where the group operates through Bracell, a producer of dissolving and bleached eucalyptus pulp. The company recently started up “Project Star” at its mill in Lençóis Paulista (formerly Lwarcel), Sao Paulo state, with new technology that will allow it to switch from kraft pulp to dissolving pulp as the market demands. It has also invested in a new tissue mill next to the pulp mill where it has installed four machines which are now in the process of starting up.
FRANCISCO RUIZ-TAGLE, CMPC
Named Fastmarkets RISI International CEO of the Year for 2024, Ruiz-Tagle was recognized for the company’s accomplishments around sustainability, innovation, and financial results. He has been with CMPC for 30 years and CEO since 2018; under his leadership, more than 95 percent of its forest assets have been certified. CMPC has announced plans to build a 2.5-million metric tpy bleached hardwood kraft pulp mill in Rio Grande do Sul, Brazil.
ANTHONY PRATT, PRATT INDUSTRIES
Making good on his promise to invest US$5 billion over 10 years in recycling and the clean energy infrastructure, Pratt Industries opened its US$700 million recycling paper mill and corrugating box facility in Henderson, KY, in late 2023. It can produce 1,500 tpd. Pratt is also pushing efforts to fight food insecurity: at the Henderson opening, it announced a donation of US$1 million to support Feeding America; recently, it also gave US $500,000 to its program with HelloFresh through the Meals with Meaning program.
HANS SOHLSTRÖM, STORA ENSO
Incoming CEO of Stora Enso, Sohlström has been busy navigating choppy waters in his first year of the role. Beset by profitability challenges, sluggish retail markets for packaging, and strikes, the new CEO has initiated a profit improvement program that is already seeing positive results as the company centers on cost reduction. Positive sentiment surrounds the Oulu site in Finland, where the company’s consumer board investment will start up next year.
MICHAEL DOSS, GRAPHIC PACKAGING INT’L.
Doss was named Fastmarkets RISI’s North American CEO of the Year for 2023 for his vision, strategic leadership, and dedication to the industry. As a BOD member and former chair for AF&PA—and with ambitious new company-wide ESG targets and two large, future-focused mill projects under his belt (Kalamazoo, MI and Waco, TX)—Doss seems committed to creating the industry he wants instead of merely adapting to the industry we have.
CRISTIANO TEIXEIRA, KLABIN
Another multi-award winning CEO, Teixeira has led the company to great heights. With the start-up of the Puma II project, the mill’s two paper machines, PM 27 and PM 28, can now produce 910,000 metric tpy of packaging paper, bringing the company’s capacity to more than 4.7 million metric tpy of pulp and paper.
STEVE BINNIE, SAPPI
Despite subdued underlying market conditions due to the challenging macroeconomic environment, Sappi has managed to improve profits over year-on-year, according to its Q2 results. Binnie says this is mostly due to improvements in the pulp segments along with the closure of its Stockstadt and Lanaken mills in Europe. Good news comes with a reported recovery of graphic papers demand, and the completion of Phase Two of a three-phase project at its Gratkorn Mill in Austria—a digitalization project that will “ensure machine failure is reduced to the absolute minimum.”
LARRY MONTAGUE
As president and CEO of TAPPI, Montague continues leading in the direction of progress. Initiatives such as focused divisions for students, women, and young professionals; increased involvement opportunities for Standards development; and world-class events (with rising attendance) all drive home that knowledge is power—and Montague is committed to making sure TAPPI offers knowledge the industry needs.
LUIGI LAZZARESCHI, SOFIDEL
Lazzareschi is often seen on our Power List, as well as in the pages of Tissue360°, due to the incredible growth of Sofidel in the US along with his drive when it comes to sustainability. Early this year, the company acquired ST Paper located in Duluth, MN, which includes a tissue machine with a capacity of 65,000 metric tpy. Sofidel has embarked on a project at its Circleville, OH, mill that will see a new tissue machine with a capacity of 70,000 metric tpy, bringing the site’s total capacity to 200,000 metric tpy.
DAVID SEWELL, WESTROCK
Sewell led the company through a great period of growth, including the total acquisition of Grupo Gondi of Mexico. The company grew to lead the rankings in the annual Paper 360° Top 75 publicly-listed forest products companies. WestRock will become Smurfit WestRock once the mega-merger is finalized, and Sewell will leave the company.
MASSIMO REYNAUDO, UPM
Taking over from Jussi Pesonen, another Power List regular over the last 17 years, is Massimo Reynaudo, incoming CEO of UPM. Having been with the company since 2017, Reynaudo, an Italian citizen, moved up from his position as VP of Communication Papers at the beginning of 2024. Pesonen’s boots will be hard to fill: he has transformed UPM from a Finnish-based paper company into an international giant in renewables, with the two Uruguayan pulp mills—Fray Bentos and the latest start-up, Paso de los Toros—making a huge impact on UPM’s Fibers division.
JORI RINGMAN, CEPI
Always working hard for the European industry from his base in Brussels, Ringman is a great enthusiast for the decarbonization of the pulp and paper industry—and not just for sustainability reasons. Ringman recently said, “What is good for the European industry can be great for the climate, and we need to keep discussing with the European Commission to create solutions for competitiveness and climate change. More often than not they are one and the same.” Eurostat data reveals that decarbonization investments in the pulp and paper industry are currently five times higher than other EU manufacturing industries.
LI HONGXIN, SUN PAPER
Sun Paper has come a long way since founder Hongxin started selling paper from the back of a motorbike in the early 1980s. The company is now a world leader in the industry, with numerous pulp and paper mills and a production capacity of more than 10 million metric tons. In its latest move at Nanning Sun Paper pulp and paper mill, the company has started up China’s largest high kappa fiberline with a capacity of 1,600 air dried metric tons per day, as well as two OCC lines with a capacity of 1 million metric tpy.
ATLAS HOLDINGS
More of a cooperative, Atlas was formed in 2002 by Tim Fazio and Andrew Bursky. The principle is to invest in companies with complex operational and financial challenges. Atlas has built quite a pulp and paper portfolio; in 2023, it acquired three Canadian mills (See M&A section) to go with its other pulp and paper-related holdings such as Millar Western, Twin Rivers Paper, Marcal, Finch Paper, and Crown Paper.
YOUNG PROFESSIONALS
TAPPI’s Young Professional of the Year is an annual honor that identifies aspiring leaders in the global forest products, pulp, paper, tissue, packaging, and associated industries. This year’s three recipients earn their spot on this list as future change-makers. They are:
- Özlem Akdoğan: as principal scientist – ESG, sustainable packaging R&D for Kraft Heinz, Akdoğan is mainly responsible for the design, development, application, and testing of paper coatings.
- Seth Gulledge: Gulledge is a paper machine optimization lead (and a Lean Six Sigma black belt) at Domtar’s Marlboro Mill in South Carolina.
- Stephen Bussa: Bussa is area sales manager for Axchem, one of the fastest growing chemical manufacturers in the US.
MERGERS & ACQUISITIONS
The industry continues to be in a state of flux. Two mega-mergers highlight this year’s section: one well underway and the other a possibility. The latter may also influence another large takeover. We also highlight important, though smaller, deals.
SMURFIT KAPPA / WESTROCK
Just after the 2023 Power List was published, news broke of the merger between Smurfit Kappa and Westrock to create packaging behemoth Smurfit WestRock. Combined revenue, based on previous years’ figures, should be well north of US$30 billion. The company will be headquartered in Dublin and Tony Smurfit will be CEO. With 100,000 employees and a total of more than 65 mills and 500 converting facilities, the company will have a significant presence across Europe and the Americas. The deal is expected to close in July.
INTERNATIONAL PAPER / DS SMITH
In April, IP announced it would acquire DS Smith in a transaction valued at almost US$10 billion. The press release said that this would create “a leader in sustainable packaging solutions.” Newly-elected IP CEO Andrew Silvernail will be CEO, with headquarters in Memphis. The DS Smith head office in London will be IP’s new EMEA HQ. IP was not the only suitor for DS Smith, as Mondi had also hoped to acquire the company.
SUZANO / INTERNATIONAL PAPER
From being the hunter to the hunted, IP was in the sights of Suzano when the South American pulp producing giant made a US$15 billion offer. As of press time, the offer had been rejected by IP and Suzano had chosen to not proceed with the acquisition. Shares in DS Smith rose sharply after the news, putting its merger with IP back at center stage. Suzano cited “capital discipline” as its reason for withdrawal. The deal gave shareholders a glimpse at the leadership style of both newly-minted CEOs.
CLEARWATER PAPER / GRAPHIC PACKAGING
Clearwater has purchased GPI’s 250,000-tpy bleacher paperboard mill in Augusta, GA, for a reported US$700 million. Clearwater CEO Arsen Kitch called the acquisition an excellent fit and said it improved Clearwater’s position as a premier independent supplier to North American converters.
MONDI/WEST FRASER
Mondi purchased West Fraser Timber’s 250,000 metric tpy pulp mill in Hinton, AB, Canada for US$5 million. Mondi plans to install a new kraft paper machine at the mill that will cost EUR400 million. Expected startup is the second half of 2027. This will help secure supply to Mondi’s 10 paper bag plants in the Americas.
ATLAS HOLDINGS / WEST FRASER / RESOLUTE
West Fraser Timber has sold its two BCTMP mills—Quesnel River, BC, and Slave Lake Pulp, Slave Lake, AB—to Atlas Holdings for US$120 million. The mills will be operated by one of Atlas Holdings’ companies, Millar Western, which has extensive forest products holdings in western Canada. With these moves, West Fraser is divesting from the pulp business to aim at being the “premier building products company in North America.” Atlas also purchased the former Resolute mill in Thunder Bay, On, which will operate as Thunder Bay Pulp and Paper.
MATIV
Matic has sold its Engineered Papers business to Evergreen Hill Enterprises, which will operate the business as SWM International. Mativ said that 80 percent of its revenue will now come from its growing Advanced Technical Materials business.
INNOVATIVE PRODUCTS
LENZING
Lenzing fiber-based geotextile for glacier protection are nonwovens made of cellulosic fibers used to cover glacier mass. The Institute of Ecology at the University of Innsbruck together with Lenzing did their first trials in 2022. These confirmed the effectiveness of the approach in slowing glacier melt while leaving no microplastic residue.
TREETOTEXTILE
This Swedish-based company has developed a new fiber that can be used in textile or non-woven applications. A 350-kg/hr demo plant started up in 2023. The technology uses dissolving pulp, but the company is doing research on other potential raw materials. A cold alkaline solution is the key to the process. It has a low water, energy, and chemical demand and can replace both cotton and viscose. Stora Enso has joined as a partner.
AISTI
Spun out of the Finnish research institute VTT, Aisti has developed a foam-forming technology to produce lightweight board from natural and recyclable materials. Its Teno acoustic tiles contain no plastics, mineral fibers, or synthetic binders. The company plans to focus on the non-residential sector. Aisti won the Startup Competition at the recent Pulp and Beyond conference in Finland.
RYAM
The company has just celebrated the first shipment of its 2G bioethanol from its Tartas mill in France. It is cellulose-based, converting waste from its specialty pulp production process (lignin to transportation fuel). The plant can produce 21 million liters. A second 2G bioethanol plant has been proposed at RYAM’s site in Fernandina Beach, FL.
HONEXT® BOARD FR-B
A winner of the 2024 Cellulose Fiber Innovation awards, Honext® is a flame-retardant board made from upcycled fiber waste from paper mills. It uses paper sludge to produce a lightweight board that features high mechanical performance and stability with low thermal conductivity.
METSÄ SPRING
Designed to seek new business opportunities for Metsä Group, the Metsä Spring staff has numerous projects on the go. It has developed a wood cellulose fiber-based alternative for plastic packaging called Muoto®. The technology converts wet wood pulp into three-dimensional packaging. A demo plant is operating at the Äänekoski mill while a decision about a commercial scale unit should be made by early 2025.
SPINNOVA
A regular on this list, its new facility in Jyväskylä, Finland, can produce 1,000 metric tpy with hopes of expanding to one million metric tpy. It uses pulp from its Brazilian partner Suzano that is microfibrillated and spun into filament. It has branched out from clothing and found a market in composites—for example ski cores, replacing wood and glass fiber.
VTT / ISKU
Making furniture with paper machines? Research institute VTT and ISKU, a leading Finnish furniture manufacturer, have joined forces to create a chair that showcases the potential of biocomposite materials. The chair is made from a cellulose-plastic compound that uses annual fibers, polypropylene, and wood pulp as raw materials. The biocomposite material was produced by VTT using foam forming technology originally developed for papermaking. VTT says the process allows for high-volume and cost-efficient production and provides nearly limitless options for product customization.
FOOPAK ANCHOR BIO
Asian giant APP has recently launched its Foopak Anchor Bio plastic-free board specifically designed for the frozen food and thermoformed tray sector. The new board seeks to eliminate PET plastics in the ready-meal and frozen food packaging markets. It can be thermoformed into a food tray that can go from cold case or freezer directly to a microwave or conventional oven up to 400 degrees Fahrenheit.
EMISSION-FREE PULPING PROCESS
While not yet an innovative product, Swedish RISE and Finnish VTT have started a joint research program, “Emission Free Pulping,” which will initially last for five years. The aim is to create emission-free pulping at industrial scale, to include: maximizing product yield while avoiding emissions, especially CO2; produce fiber qualities suitable for high volume applications; efficient utilization of side-streams, preferable for use other than energy; and mill self-sufficiency and sustainable water management.
GLOBAL ISSUES
ISTOCK.COM/AELITTA
THE INDIVIDUAL
All but ignored until recently, the issue of the well-being of the individual is still in flux. In the past, for most, well-being in the workplace was too often measured by the size of the paycheck; but the workplace has been transformed, especially since COVID struck. Work-life balance is hard to measure definitively, as achieving equilibrium among one’s priorities is different for each individual; there is no one size fits all answer. Old school employers ignore this at their own risk: the competition for talent is fierce.
GEOPOLITICAL TENSIONS
Another holdover entry from last year—but the situation appears even more fraught, with the advent of the Israel/Palestine hostilities and their global repercussions. The risk of sailing in the Red Sea has many northern European forest products exporters facing increased transport costs by bypassing the Suez Canal. The war in Ukraine goes on with no real end in sight. In November, the world’s eyes will be on Washington as an increasingly polarized US electorate makes its choice for president. In an article in Canada’s Globe and Mail newspaper, a CEO of a metalworking company decried the rise of Paper Excellence in Canada. It’s been called a “fiber grab” by China, but this executive cited the production of nitrocellulose (from wood pulp), which is used as a component in ammunition, thus it becomes a national security issue. It seems there is no place in the world untouched by these tempestuous times.
CARBON CAPTURE
According to the United Nations Intergovernmental Panel on Climate Change (IPCC), all realistic pathways to limit global warming to 1.5°C will involve the use of carbon removals. Sustainable forestry is still key to removing carbon from the atmosphere. The next big move in carbon capture is from the manufacturing process. This can and will have a very positive effect on reducing emissions and therefore go toward alleviating climate change. It also represents another opportunity for new products being produced from pulp mills in the shape of “biogenic carbon” or more simply put, renewable carbon. Products that can be made from the captured carbon include e-fuels, e-methane, green ammonia, and green hydrogen.
EVENTS
There have been a number of significant events held around the world with excellent attendance, as well as presenting ideal platforms for revealing the latest technology for the industry. Among 2024’s most impactful were:
PULP & BEYOND (Helsinki)
This year’s Pulp & Beyond was a significant milestone in pulp and paper events. Formerly known as PulPaper, the biannual event has completely transformed in name as well as layout, with a much more environmentally friendly approach. The conference was limited to one day with three tracks so visitors could spend more time at the exhibition held on the two days after the conference. Exhibit sizes were restricted to only 40 m2, giving a lot more room for visitors; and booths were required to be made from renewable materials. The event in total drew 8,000 visitors.
TAPPICON (Cleveland, OH)
TAPPICon 2024 paid tribute to its location (famous for its Rock and Roll Hall of Fame) with the theme, Rock the Roll!: Unleashing the Harmonies of the Paper Industry. Attendance overshot expectations, with a multi-track program and exhibition dedicated to ensuring industry professionals have all the knowledge they could need to do the best job possible.
DRUPA (Düsseldorf)
For the first time in eight years, Düsseldorf was once again home to the world’s largest printing exhibition—the 2024 event in June attracted more than 170,000 visitors. The once-every-four-years event has been beset by the challenges of COVID; but once again professionals from paper, packaging, labels and printing industries were able to meet face to face, and to view the rapidly evolving digital technologies being displayed across all industries.
FUTUREPROOFING
This year we’ve reserved our last spot for the areas that pulp, paper, tissue, and packaging mills need to consider to ensure they continue to operate efficiently well into the future.
PEOPLE
Of all the challenges that come up when Paper360° editors interview CEOs, speak to managers, or visit mills, the top is recruiting and maintaining a skilled labor force. The fact is, people are the most important element of running any company, and human skills are of vital importance to the future-proofing of mills. Fortunately, there are positive signs: it’s becoming clearer that this industry is a good place to work for the protection of the planet, and the attraction of new digital technology is making it a much less “heavy” industry to work in.
TECHNOLOGY
We have been constantly bombarded by the terms digitalization, AI, autonomous operation, and IIoT over recent years, but these futuristic technologies are now in place at mills around the world. These groundbreaking innovations are already proving themselves when it comes to preventive maintenance, dramatically helping to increase up time and limit breakdowns. Autonomous operation is also going some way toward solving the skilled staff shortages and will undoubtedly become a vital ingredient for the future.
ENVIRONMENT
Modern pulp and paper mills are now an outstanding example of a circular economy with a number of mills now being 100 percent fossil fuel free, as well as achieving zero waste to landfill. Hats off to the numerous suppliers to the industry who have worked hard on innovations to allow this to happen in the areas of increased yield, biomass energy generation, closed water loops and the reuse of side streams. With the latest technology available, there is now absolutely no excuse for any mill to be seen as an “ugly polluter.”
INNOVATION
You only need to look at the Innovative Products section of our Power List to see how good the pulp and paper industries have become at creating innovative products—and long may it continue. We are now living in a world where plastic products are seen as bad for the environment, and any innovation from cellulosic-based suppliers is welcomed with open arms, particularly by consumer-aware brand owners. New innovations in all areas are essential for futureproofing our industry, and there are still lots of opportunities for producing renewable substitutes to plastic products.
