With European paper producers planning to bring more than 1 million tons/year of new folding board (FBB) capacity into the market within a few years, paper and board (P&B) industry players question whether this is a healthy and necessary capacity launch to achieve a stable There is some debate about whether industrial growth, or simply producers’ short-term interests, could eventually lead to oversupply in Europe.best sweet boxes
The number of new capacity announcements has grown rapidly over the past two years. Last year, Metsä Board said it would increase production at its Husum mill by 200,000 t/y through the rebuilding of BM 1, which is currently ramping up capacity. Before the retrofit, the machine had an annual output of 400,000 tons and is expected to reach its full new capacity of about 600,000 tons/year by 2025.boxed sweet wine
In January, Metsä Paperboard announced that it had begun an environmental impact assessment for the new FBB plant in Kaskinen, Finland, with an annual capacity of approximately 800,000 tons. An investment decision is expected as early as 2024. In May, AFRY announced that it had been selected by Metsä Paperboard as engineering partner for the pre-engineering phase.preroll king size box
In October last year, Stora Enso announced that by 2025, it would transform the idle No. 6 paper machine in Oulu, Finland, to produce 750,000 tons/year of FBB and coated unbleached kraft paper (CUK). Stora Enso said it would invest around 1 billion euros in the retrofit and had chosen Voith to carry out the project.portable wifi box unlimited data
Global demand for raw paper and recycled consumer board is expected to grow by more than 11 million tons, reaching nearly 57 million tons by 2030. “The investment in Oulu enables us to build on the plastic substitution trend,” Stora Enso said in its first-quarter 2023 financial results.date in a box subscription
These new projects will bring close to 200 Mt/y of additional capacity, depending on Oulu’s FBB/CUK mix, and assuming Kaskinen goes ahead as planned. This huge number of new FBBs will soon enter the market, and industry players are divided on its impact.boxing game release date
One of the points that emerged during numerous interviews with market participants was that new and rebuilt machines may replace older machines, so that net capacity change will eventually be somewhat lower. “I wouldn’t be surprised if the new capacity is displacing other machines,” said one producer. “The new capacity may cause smaller factories to close.”
Stora Enso also hinted at the possibility of such a shakeout in its first-quarter 2023 results. “Products from other consumer board mills can be transferred to Oulu, simplifying the product mix and increasing productivity at all sites,” the company said.best chocolate box
On the topic of plant closures, the sources noted that new capacity in Scandinavia could pose problems for smaller producers outside the region. “The Scandinavian cost base has an advantage over continental European producers. Ultimately continental European producers will struggle to compete and sustainability and carbon emissions will become bigger and bigger issues. Central Europe has some machines that should have closed a few years ago, but still exists,” said one producer, “and the smaller players may not survive.”upstream data black box
Some people are optimistic about the potential of using extra abilities. “I think the capacity increase is a good sign because the market needs this new capacity, but the logistics, freight and warehousing need to be controlled. The capacity needs to be managed properly. It is not enough to say that we have extra capacity, the whole process needs to be more efficient. Focus,” said one producer.chocolate boxed cake hacks
Others expressed a more cautious view, citing excess capacity in other P&B grades as a cautionary tale. “We have to be very careful not to get into the same situation as newsprint,” says one producer. “There’s too much new capacity involved here, unless, for example, the EU mandates that all plastic-based dairy products must be fiber-based. ’ added a processor.
The European Commission’s opinion, which will help guide the shift towards plastic substitution, is also a hot topic. “The legislation coming out of Brussels will have a huge impact,” said one producer. “There is a risk of overcapacity. Everything depends on the outcome of plastic substitution.“
According to contacts, the plastic replacement shift is progressing well, and they have reported on several occasions that since the availability of cardboard has increased, conversations about a potential shift have picked up again in earnest. “We still see strong demand for plastic alternatives, which will be astronomical,” said a converter.regular cigarette case
Still, others say there’s no guarantee of getting rid of plastic completely. “Plastic substitution is there, but not at any cost,” said a trader.
It is also possible that not all new FBB capacity will remain in Europe. “Increased capacity will bring more board to the US,” says a converter. However, macroeconomic conditions may also have an impact on the success of exports as a solution for managing new volumes. “The current exchange rate does not support exports to the US,” said a producer.box of assorted chocolates
One producer cautioned that there may not be enough lumber available to support planned volumes. “There may be a need for additional capacity. But is there enough raw material? There is already a battle going on over timber. I don’t believe there is raw material to produce this extra capacity,” he said.chocolate cake box mix
Post time: Jun-06-2023