After posting a €55 million loss in 2025, Ence is accelerating its shift toward specialty pulp production as market conditions improve.
Average pulp prices fell to $1,086 per tonne during the year but have since climbed to around $1,250/t, with leading producers announcing increases to $1,330/t.
A key milestone in this strategy was the start-up of Europe’s first eucalyptus-based fluff pulp line at the Navia biofactory in the fourth quarter of 2025. The line has an annual capacity of 125,000 tonnes and targets the European absorbent hygiene products market, offering a regional alternative to imported long-fibre fluff pulp.
Specialty pulp represented 30% of Ence’s pulp sales at the end of 2025, seven percentage points higher than in 2024, generating an additional margin of €37 per tonne compared with standard grades. The company aims to increase this share to more than 62% by 2028.
Ence also continues to focus on cost competitiveness. Cash production costs fell to €483 per tonne in 2025, the lowest level since 2022, and the company is implementing measures expected to reduce costs by a further €30/t between 2026 and 2027.
In parallel, Ence is expanding its biomass-based renewable energy platform in the Iberian Peninsula. Biomass electricity generation reached more than 1,240 GWh in 2025, up 6% year over year.
Despite the losses recorded last year, the company expects stronger performance in 2026 as pulp prices recover and higher-margin specialty pulp increases its share of sales.
Ence – Energía y Celulosa, S.A. is a Spanish producer of eucalyptus pulp and renewable energy. The company operates pulp production facilities in Navia (Asturias) and Pontevedra (Galicia) and supplies eucalyptus-based pulp to customers in the paper and hygiene products industries worldwide.
In addition to pulp production, Ence develops renewable energy projects based on biomass, generating electricity and industrial heat while advancing initiatives in biomethane and biofertilisers. The company is listed on the Spanish stock exchange and is headquartered in Madrid.
Source: Ence
