EDITORIAL

Stéphane Richard

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Microorganism vs. Mega trend: Anybody’s guess really

The pulp and paper sector, like all industries, will be affected by the pandemic situation we are facing at the time this article is being written, as well as the tough lockdown and sanitary measures taken by governments all over the world. In the short term, segments like containerboard, tissue and specialty papers seem to have been relatively spared, and have even benefited from the crisis to some extent, as our industry has been widely recognised as essential. In the long term, the outcome is still unpredictable. Whatever becomes of the pulp and paper sector, like all manufacturing industries, it will depend on the resilience of the free market economy in an interconnected and interdependent world. One thing is for certain, we will witness a reshuffling of the global pack with even stronger competition when international solidarity finally fades away.

The world’s dependence on China is now clearly seen as a weakness and a risk by most Western countries. The need to relocate some strategic industries is particularly glaring. In the near future, we will hear officials calling for the development of smaller manufacturing units serving their national markets. The challenge will be to prove their economic viability. Beating the “world’s factory” in terms of competitiveness without imposing import taxes will demand ingenuity from industrial strategists, and strong capital commitment. Innovation will also be a key factor, as well as the sustainability issue that will have to remain a major driver.

In this edition of PaperFIRST Mag, you will read a lot about sustainability and innovation. The fibre-based industry has proven its capacity to be a major player when it comes to supporting a “green deal” policy. From Australia to Africa, from India to Europe and the Americas, our federations across the globe are making sure it is seen as a solution by policy makers. Resource management, ecodesign, decarbonisation and circularity are some of the aspects that are contributing to a bright future for pulp and paper products. The fundamentals and prospects of our industry have never been so strong. This mega-trend should prevail in the long run, with or without a nasty virus.

Stéphane RICHARD

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EDITORIAL 3

FINANCIAL OUTLOOK Forest product companies and market challenges 6

MARKET OUTLOOK Paper industry embraces the potential of sustainable packaging On global tissue markets, pulp demand, and the looming recession Is sustainability shaping the hygiene tissue industry? Evidence from the field

BUSINESS DYNAMICS Traditional forecast methods are unable to predict the turning points in cyclical markets 10 15

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THE C-LEVEL INTERVIEW Hans Sohlström, CEO of Ahlstrom-Munksjö 26

GLOBAL CHALLENGES Crossed viewpoints from Europe, Africa, Asia, Australia and the Americas 30

PRODUCT BREAKTHROUGH Paperboard powers the future 44

MILL STORIES How Voith and BillerudKorsnäs build the world’s most modern board machine

INDUSTRY 4.0 AI-based business models by Valmet

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TECHNICAL INSIGHT Value stream for sustainability by Kadant Towards energy-efficient and economical tissue production by Runtech The new polyurethane roll cover SupremeFilm by Voith 52 53 57