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Paper business line

In this section you can find more information on Paper business line, such as key figures and market drivers. See also descriptions of tissue and paper making processes.

Paper business line supplies board, tissue and paper machinery as well as equipment and machine rebuilds for the board, tissue and paper industries. Board, tissue and paper are used in a wide variety of end uses, including packaging applications, hygiene products, such as facial tissue, bathroom tissue and paper towels, and writing and printing papers. Board, tissue and paper are produced on paper machines from virgin wood pulp or recycled pulp. The papermaking process includes several stages in which the pulp slurry is converted into board, tissue or paper through forming, pressing and drying. In addition, a paper mill includes technology and equipment, among others, for stock preparation and paper finishing such as reeling, slitting and roll handling.

The lifetime of a paper machine can be several decades. In addition to new machines, there is also a market for machine rebuilds and improvements to increase production and improve its quality, convert an existing paper machine to produce a different paper grade or relocate a paper machine to a new geography. Current paper machines are often built to be flexible and allow for the production of various paper grades.

Paper business line's customers are mainly paper companies as well as board and tissue producers. The most important geographical markets for new board and paper machines are mainly China and Asia Pacific, and to a lesser extent, Europe and North America. Whereas in rebuild business, Europe and North America are the most important markets.

Deliveries are typically project based. Valmet typically enters into a bidding process for new projects and the project contracts are typically for a fixed amount. After the contract is signed, projects typically take between 12 and 24 months to complete. As orders for new paper machines have decreased in recent years due to reduced demand especially for printing and writing paper grades, board and tissue machines have represented a larger percentage of Valmet’s order book. However, the demand for paper machine rebuilds has remained strong.

 

Key figures Paper business line 2016

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Market drivers

Source: Valmet Capital Markets Day 2016

Tissue

  • Fastest growth in emerging markets
  • Rise in purchasing power and living standards in emerging markets

Board

  • World trade, e-commerce and emerging markets growth drive packaging
  • Shift from plastic packaging to renewable materials
  • Demand for light-weight board

Paper

  • Increasing role of digital media decreases demand for printing and writing papers
  • Some growth in emerging markets 

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Updated; Sep 18, 2017