Summit Notebook

Exclusive look inside Sweden’s greenest paper mill

For most of us, printing e-mails or making copies is just part of the daily routine in the office. But, the paper we use does come from somewhere. Last week, we had the opportunity to visit Stora Enso’s Nymolla Mill in southern Sweden to get an exclusive look at how MultiCopy paper is made. Nymolla is an integrated mill (it produces pulp and paper on the same site) and most of the wood used is sourced locally. Also interesting, the mill is the only one I could find in the world that emits zero carbon dioxide from fossil fuels during the paper making process. Check out my look inside the Nymolla Mill.

Inside Sweden's greenest paper mill from Reuters TV on Vimeo.

Paper makers bet on sector despite clouds ahead

Despite the dark cloud hanging over the forestry sector, most industry leaders said they still see the paper business as a good investment.

Overcapacity has kept a lid on paper prices for years, while increasing costs of wood and energy have eaten into the paper makers’ already low margins.

But when asked where they would invest 50,000 euros ($74,330) in stocks other than their own, the participants at the Reuters Paper Summit said the forestries is where they would put their money.

“The good companies will come out of the storm stronger than they were ever before,” said Jouko Karvinen, chief executive of the world’s top paper and board maker Stora Enso.

Karvinen said there has been a silver lining to the “perfect storm” of bad news.

“There may be a good thing with this storm; maybe we will finally get our act together and make decisions that need to be made and start making some real money one day,” he said.

The rapidly growing demand for paper products in China and Latin America’s wealth of fibre were a key argument, the executives said.

No gain without pain for European paper makers

The current slew of bad news was necessary to get European forestry companies to act, the head of the world’s top paper and board maker Stora Enso said on Wednesday.

For years the European paper industry has suffered from overcapacity, which has kept a lid on prices, while increasing costs of wood and energy have eaten into already low margins.

But Stora’s Chief Executive Jouko Karvinen, speaking at the Reuters Paper Industry Summit in Helsinki, said there has been a silver lining to the “perfect storm” of bad news.

“The good companies will come out of the storm stronger than they were ever before,” he said.

“And as bad as the past eight years have been, and as much as we complain about every possible problem right now, I have one thought: there may be a good thing with this storm. Maybe we will finally get our act together and make decisions that need to be made and start making some real money one day. It will take a little time, but that’s the goal,” he said.