Speaking at the mill this week, European sales director for commercial print John Clinton said that, despite the dramatic decline in demand at some of its graphic paper markets, Sappi was confident about the future for print and paper-based substrates.
He cited a near-50% overall decline in demand for CWF paper from 2019-2023, the enormous contraction in the web offset market, and the fact that "very little" publication gravure printing now remained in Europe.
“We recognise the market situation and the reason we’re investing in Gratkorn is to ensure we can be the winner in a difficult market situation,” he stated.
“What’s really important to our customers is availability – that they can get the product when they need it.”
Gratkorn is the flagship site for production of the Magno range of predominantly coated woodfree papers.
However, Sappi also has a “carousel” system for production whereby it can manufacture Magno to the same standards at other European mills if necessary, depending on product demand at any given time.
“Magno is made in Europe and we spend a lot of money behind the curtain on quality and the environment,” Clinton added.
Sappi Europe recently completed phase two of the modernisation project at Gratkorn, which involves an investment of around €25m (£21.17m).
The integrated mill produces 250,000tpa of pulp, all of it used at Gratkorn, and has the capacity to make 950,000tpa of paper at the giant site, which spans 1m/sqm.
PM11 at the mill produces Magno and has a capacity of 730,000tpa.
As part of Sappi’s diversification into other types of paper the site has also been making label grades since 2021 on PM9, which has capacity of 220,000tpa.
PM9 currently makes wet-glue and self-adhesive papers under Sappi’s Parade brand and following the completion of a validation project currently underway, will launch the wet-strength and alkali-resistant Parade Label WS label papers in the autumn.
The new wet-strength range will be targeted at wet-glue label applications such as returnable bottles and containers.
“Our label papers have really developed in the last couple of years,” Clinton said.
“We are by far the largest in label papers and will be substantially more after the completion of the next investment.”
Gratkorn Mill director Peter Putz, who oversees 1,061 employees at the site highlighted the safety and sustainability ethos at Gratkorn, which also provides heating to more than 20,000 households in the area via a district heating scheme.
Boiler 11 has been upgraded from coal to biomass and renewable energy will be up to 70% "soon" he said.
Sandrina Machado, sustainability specialist at Sappi Europe, said the business was focusing its efforts on the seven areas where it could make the biggest impact, and was helping suppliers to bring them up to the same level.
It uses the Ecovadis tools and scorecard extensively.
"We want to be able to say to our customers they are buying a product with well-managed raw materials," she explained.
