While the pulp and paper industry is inherently local—particularly in terms of production and sourcing of raw materials—trade is fundamentally cross-border and international. As a result, the sector is highly exposed to trade barriers and tensions, such as those created by the tariff policies introduced during the Trump administration.
Tariffs are expected to put significant pressure on transportation and logistics—sectors that are intrinsically linked to the pulp and paper industry. This strain is partly mitigated by the fact that many pulp and paper companies have made substantial investments in overseas production capacity.
Recent mergers in the industry, such as the Smurfit Kappa–WestRock merger and the International Paper–DS Smith merger, are also likely to offset some of the negative impacts of tariffs. These newly formed giants now operate production facilities in both Europe and the US. Both of these multi-billion dollar transactions took place in 2024.
Other companies, such as Sweden’s Billerud, have established a transatlantic presence. Billerud acquired US-based Verso some years ago, securing production capabilities on both sides of the Atlantic.
Mergers and acquisitions are reshaping the global pulp and paper landscape, and in an era of looming trade wars and frequent supply chain disruptions, scale can become a competitive advantage. This consolidation trend may render the pulp and paper industry more resilient than other, more fragmented sectors dominated by smaller players as well as industries depending on input of strategical materials.
Will recent mergers in the global pulp and paper industry partly offset trade tensions? | PULPAPERnews.com