Turning the page to profitability - Paper Technology International 2023 - Paper Technology International 2023 - Flipbook - Page 104

Turning the page to profitability - Paper Technology International 2023

PAPERTECHNOLOGYINTERNATIONAL
Turning the page to profitability - Paper Technology International 2023
Turning the page to profitability
How biotechnology can set up paper mills for long-term competitiveness
Pedro Loureiro, Global Business Development Manager Pulp & Paper, Novozymes A/S,
Christian Reinholm, Global MarCom Manager, Novozymes A/S
David Ellis, Copywriter, Novozymes A/S
INTRODUCTION:
Over the past couple of years, an unpredictable and highly volatile economy, and a variety of changing conditions across the globe
have put unprecedented pressure on many businesses. The pulp and paper industry is no exception. In fact, a number of factors have
combined to make it particularly hard for mills to remain competitive.
The lockdowns during the COVID-19 pandemic resulted
in a huge rise in online sales, with a 43% increase in 2020 alone1.
This rapid increase in e-commerce drove a huge demand for
papermakers in the corrugated packaging segment, a demand
that is becoming even more pronounced as growing environmental
concerns are resulting in higher taxes and penalties on plastics.
During the same time period, the tissue and towel segment also saw
a sharp rise in demand, while printing and writing struggled to deal
with shifting market trends as their segment continued to decline. All
of these changes caused materials shortages across the industry
and higher raw material prices.
And, as some paper mills struggle to come to grips with
these challenges, rising operating expenses have strained their
bottom line to the breaking point. In 2022, the energy cost required
to run a mill can be equal to or even greater than the full sale price
of paperboard a year ago. As a result, many paper mills have shut
down operations entirely, putting pressure on those that remain
to find ways to increase production while still maintaining a profit
margin, remaining competitive, and improving their environmental
profile.
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Mechanical and chemical optimization no longer hold the
answers
The most obvious answer to increasing margins and
producing more is to optimize efficiency. However, conventional
optimization methods have their limits and, in some cases, are no
longer viable due to sustainability concerns.
For most paper mills, the efficiency of mechanical
optimization of existing equipment has plateaued. Efficiency
can only be improved so far when the fundamental capacity
and processes remain the same. Focusing on mechanical
improvements also is costly in terms of CAPEX spending. Rather
than improving margins, this creates a vicious cycle where future
growth opportunities are compromised by marginal short-term gains.
Carving out cost savings becomes increasingly difficult.
Chemical optimization methods used in papermaking —
dewatering and retention aids, strength additives, and debonders,
for example — have limits to their effectiveness as well. Additionally,
stricter environmental regulations — like the European Green Deal
— and uncertain fate under the Chemical Strategy for Sustainability
(CSS), mean that mills are increasingly forced to abandon
conventional chemical
treatments with high CO2
footprint in favor of more
sustainable solutions.
The power of enzymes:
finding answers in nature
As paper mills
look for ways to take on
the increasingly difficult
questions of improving costeffectiveness and increasing
sustainability, many are
turning to biotechnology for
answers.
Enzymes are
proteins found in nature
that are produced by every
living organism that act
as catalysts to speed up
chemical reactions.

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