In this section you can find more information on Paper business line, such as key figures and market drivers. Paper business line is part of the Process Technologies segment. See also the Paper at a glance -video.
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 from virgin 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 for stock preparation and paper finishing such as reeling and winding.
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 end-product quality, converting an existing paper machine to produce a different paper grade or relocating a paper machine. Modern 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. 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. There is also demand for paper machine rebuilds.
Market size1 & growth2
|Board||EUR 1.0 bn
|• World trade, e-commerce and emerging markets growth drive packaging
• Demand for lightweight board
• Shift from plastic packaging to renewable materials
• Conversions from paper to board
|Paper||EUR 0.4 bn.
|• Increasing role of digital media decreases demand for print papers
• Demand for technology-driven efficiency improvements
• Need for specialty papers
|Tissue||EUR 0.7 bn
|• Increase in purchasing power and rising living standards
• Urbanization and improved hygiene
• Fast economic growth in emerging markets
• Demand for higher quality
• Consumers’ higher hygiene habits
1)Market position and estimated market size calculated as an average during 2019–2021.
2)Long-term end market growth.
Want to know more about the papermaking process? See this video:
Or do you want to know how tissue is made?