New opportunities for Chinese paper mills

According to the latest news, UPM has announced plans to permanently end paper production at its Kaukas mill. Following this closure, global coated mechanical paper capacity will be reduced by approximately 300,000 tonnes per year.

This decision is not an isolated case, but rather a reflection of the European paper industry’s ongoing challenges — high energy costs, limited raw material access, and a structural decline in market demand.

For Chinese paper enterprises currently in a phase of transformation and upgrading, this shift opens a new window of opportunity in the global market.

Opportunity 1: Filling the Market Gap and Expanding Global Share

The 300,000 tonnes of production capacity reduced by UPM is mainly concentrated in the high-end coated mechanical paper segment.

This withdrawal creates a noticeable void in the global supply chain, particularly for premium coated grades.

For leading Chinese paper manufacturers with stable quality, complete industrial chains, and strong cost advantages, this represents a chance to capture new market share.

By leveraging efficient production systems and competitive pricing, Chinese suppliers can quickly meet international demand—especially from emerging markets and mid-tier customers that are more price-sensitive.

This trend could accelerate China’s transformation from a “paper manufacturing nation” into a “paper manufacturing powerhouse.”

Opportunity 2: Strengthening Raw Material and Supply Chain Advantages

The European paper industry’s difficulties are partly due to its dependence on Russian timber and natural gas.

In contrast, Chinese paper companies have been developing self-sufficient and globally diversified raw material networks, integrating forestry, pulp, and paper production both domestically and overseas (notably in Southeast Asia and South America).

This stable and controllable fiber supply chain has become a core competitive advantage amid global uncertainty.

While European producers face cost volatility, Chinese mills can maintain consistent production and pricing, ensuring long-term reliability for both domestic and international clients.

At China Paper, we remain committed to providing stable supply, consistent quality, and sustainable solutions for our global partners.

As global capacity shifts, we will continue to strengthen our competitiveness and contribute to a more resilient and sustainable paper industry worldwide.