Rottneros Navigates Market Challenges with Strategic Focus

Molded fiber food packaging developed by Rottneros and Arctic Paper — part of the company’s strategy to expand into renewable, plastic-free materials.

Molded fiber food packaging developed by Rottneros and Arctic Paper — part of the company’s strategy to expand into renewable, plastic-free materials. Photo: Rottneros

International News

Amid a soft global pulp market marked by falling prices and weak demand, Rottneros AB detailed its strategic and operational priorities in the January–September 2025 interim report. 

The company continues to emphasize cost discipline, production reliability, and targeted growth in niche pulp segments.

While volumes declined due to subdued CTMP demand, Vallvik Mill maintained stable production levels, and Rottneros Mill operated at about 50 percent capacity — prioritizing profitable European markets. Ongoing investments to improve efficiency are supporting competitiveness and long-term stability in mechanical pulp production.

Rottneros is also advancing its molded fiber tray project in Poland, developed in partnership with Arctic Paper, which is nearing commercial-scale production. The initiative aims to meet rising demand for renewable, plastic-free food packaging.

Although wood prices remain high, the company expects the recent downward trend to relieve pressure on margins in the coming quarters. Following its SEK 300 million rights issue in July, Rottneros strengthened liquidity and equity, ensuring flexibility to navigate ongoing market volatility.

CEO Lennart Eberleh expressed confidence in the company’s direction: “By maintaining focus on the factors we can influence and investing in sustainable growth, Rottneros is positioning itself for long-term success despite the near-term challenges.”

Founded in 1914, Rottneros AB is a Swedish pulp producer focused on sustainable raw materials and high-performance fiber products. Operating the Vallvik and Rottneros mills, the company serves global markets and is investing in innovative molded-fiber packaging solutions that support a circular, low-carbon economy.