As Europe looks for ways to strengthen its industrial base and competitiveness, much of the debate understandably focuses on building new industrial capacity. But retaining viable manufacturing also means enabling established industries to adapt to structural changes in demand.

European demand for graphic paper has fallen by more than 60 per cent since 2007. A market of more than 40 million tonnes in 2008 had contracted to around 13 million tonnes by 2025 and is projected to reach just over eight million tonnes by 2030. This decline in demand reflects long-term structural changes in how information is consumed and distributed, driven principally by the continued shift towards digital alternatives.

That scale of change presents an unavoidable question for our industry. How do we reshape a manufacturing base built for a much larger market while continuing to serve customers reliably and invest in sustainable European production?

It is a question both Sappi and UPM are facing. The proposed 50/50 joint venture would bring together our graphic paper businesses in an independent company, creating a broader industrial base better able to respond to the market Europe now has.

Europe’s competitiveness depends on keeping manufacturing viable | Sappi