The declining demand for paper saw extensive consolidation and closures across an industry ravaged by falling sales and redundancies.
A year of restructuring, divestments and boardroom drama meant Paperlinx was never far from the headlines in 2012, culminating in the announcement that it was to create a central sales contact for its three UK subsidiaries, prompting speculation that it could be the first move towards merging Robert Horne, Paper Co and Howard Smith.
UPM was similarly forced to action by the dropping demand for paper, selling off three paper mills in attempts to create savings for the business, while printing plate, film and inkjet ink manufacturer Kodak filed for Chapter 11 bankruptcy protection.
But it was not all dark clouds for the sector, at least not for those targeting the "green" minded customer. Arjowiggins's Greenfield mill completed the first half of its expansion project that will see it producing 25,000 more tonnes of recycled pulp by 2013, while the paper manufacturer closed its Danish Dalum mill.
January
Former 3M managing director Douglas Mitchell joined paper manufacturer James Cropper as a non-executive director on 1 January… DS Smith chairman Peter Johnson resigned with immediate effect as he reached retirement and was succeeded by non-executive director Gareth Davis… BFS Pressroom Solutions took over the converting and distribution deal for Trelleborg’s Vulcan printing blankets previously contracted to Manroland… UPM put over 508 jobs on the line by announcing it was to close its Albbruck paper mill in Würtemberg, Germany… DS Smith launched a £1.4bn reverse takeover bid for SCA Packaging in a deal that would create Europe’s largest corrugated and second largest packaging business with a turnover of £4bn… Paperlinx’s consumables company Total Print Supplies took on UK distribution of Shackell Edwards’ Silkoseal silk sealer range in an exclusive deal…
February
Kodak creditors issued reclamation claims for recently-shipped goods after the manufacturer filed for Chapter 11 bankruptcy protection… API Group’s largest minority shareholder Steel Partner Holdings called for the company to be sold… Wide-format media producer Neschen announced it was to close its protective film plant in Essex, culling 30 jobs… Paperlinx recorded a net loss of AUS$60.9m on sales of AUS$2.2bn for the six months to December 31 2011…
March
DS Smith was fined £50,000 as HSE investigated an accident at its Louth facility that left a worker with arm fractures and broken ribs… Paperlinx sold its Italian business, Polyedra, to Lecta for €45m (£37.5m) to reduce debt and fund the restructure of its European business… Swiss investment fund Quantum Capital bought BASF’s IMEX Netherlands-based offset printing inks business…
April
St Ives awarded Paper Management Services its supply contract for book and commercial print papers… UPM developed an in-house solution for recycling paper-based release liner back into pulp… APP was investigated by the Indonesian Ministry of Forestry following Greenpeace claims that it had been illegally logging endangered ramin trees…
May
Favini created its Shiro Alga Carta paper range from algae blooms on French coasts… The Indonesian Ministry of Forestry ruled that APP’s logging of illegal ramin trees was accidental following Greenpeace complaints… Paperlinx discontinued its 9 Lives and Greencoat brands while production of surviving recycled paper Revive was reassigned to manufacturer Burgo, ending Arjowiggins’ contract… UPM sold its Papierfabrik Albbruck, Pietersaari and Tervasaari mills as part of its business reorganisation…
June
Paperlinx closed its Milton Keynes corporate office and disbanded its global marketing and HR functions in a bid to reduce corporate costs by 35% for 2013’s financial year… Arjowiggins completed the first phase of its €1.5m expansion programme at its French Greenfield mill by boosting capacity by 10,000 tonnes of pulp… UK paper manufacturer James Cropper’s profits halved after booking an £800,000 redundancy provision to cut 40 jobs… Paperlinx announced its intention to close some of its UK sales offices and Delivery Co logistics firms…
July
UPM booked €45m into its Q2 finances to account for asset sales and redundancies as it sold its Kajaani sawmill to wood processor Pölkky Oy… GF Smith partnered Japanese merchant Takeo to sell its premium papers in the UK… Heidelberg launched a loyalty scheme that accrued points redeemable against its press consumables … ArtSystems took on Neschen’s five UK salespeople as part of a distribution contract…
August
Paperlinx’s chief executive and commercial print director exited the business as part of the ongoing restructure… Further extraordinary changes at Paperlinx saw Andrew Price appointed to the board despite his attempts to unseat its chairman in the previous AGM… Sales turnover at James Cropper dropped as declining demand for paper continued… Elliott Baxter opened a site in Glasgow to extend the availability of its products across the UK… Agfa Graphics posted a 14% earning drop due to "sluggishness" in the advertising market… Paperlinx exceeded its predicted losses in its 2011/2012 accounts as it wrote off all remaining goodwill on its European businesses…
September
Kodak ousted its president and looked to shed a further 1,000 jobs in accelerated cost-cutting efforts… Duraweld cut 10% of its workforce as the stationery manufacturer increased prices to maintain the business’ future… Arjowiggins announced it was to close its Danish Dalum Mill by the end of the year due to declining paper demand… Paperlinx chairman Harry Boon handed in his resignation in a move that was as much a shock to colleagues as investors… 100 jobs at Arjowiggins were jeopardised as the company pledged to close its UK Stowford Mill in 2014… Elliott Baxter managing director Tim Elliott stepped back from the fore to give way to his son Matthew…
October
Premier Paper opened a stockholding branch in East Anglia to promote local services… Former 3M head Phil Wild succeeded Alun Lewis as chief executive at James Cropper… Metsa Board opened its €50m biopower plant at its Finnish Kyro mill in a move engineered to reduce its dependence on fossil fuels… Xaar signed up its first Asian ink partner in China Glaze Company with a focus on ceramic printing… James Cropper’s £7m steam raising plant was selected for a 50% grant from the Regional Growth Fund…
November
Arctic Paper's takeover bid for Rottneros was backed by the Swedish pulp manufacturer’s board... Pressroom consumables manufacturer Day International entered a 30-day consultation period in an attempt to plug parent company Flint Group’s £2.5m losses… UPM and Metsa were in dispute over an alleged breach in its shareholding agreement for Metsa Fibre… Paperlinx’s European job cull saw the UK take the biggest blow, with 200 staff entering into consultation… Soon after, the paper merchant announced that it was to create a central sales contact for its three UK subsidiaries… James Cropper boosted its profits in H1 despite declining sales across its speciality paper business…
December
Arjowiggins entered the printed electronics market with Powercoat, its paper alternative to plastic conductors…Atlantic Enterprises was awarded a £14m contract to supply 90% of all Pizza Hut’s packaging… Ilford launched its Omnijet Trans media kit as a replacement for silver halide-based backlit display printing…
