Nippon Paper Industries will suspend operations at its wholly owned Hungarian subsidiary Nippon Paper Chemicals Europe (NPCE) from 31 December 2026, citing a slower-than-expected EV market and intensifying competition. Production of carboxymethylcellulose (CMC) for lithium-ion battery applications will be consolidated at the group's Gotsu plant in Japan. The group expects to book an extraordinary loss of about JPY 5 billion for the year ending 31 March 2027, and has not given a date for resuming Hungarian operations.
Why this mattersSlower EV battery demand growth in Europe is prompting Japanese materials producers to retreat from local capacity built for that market.
- NPCE will suspend operations on 31 December 2026.
- Nippon Paper expects an extraordinary loss of about JPY 5 billion for the year ending 31 March 2027.
- NPCE, based in Vacratot, Hungary, had 24 employees as of 31 August 2026.
- NPCE reported revenue of EUR 74,000 and an operating loss of about EUR 5.98 million for the year ended 31 December 2025.
- NPCE was established in September 2022 to produce SUNROSE MAC CMC for lithium-ion batteries; local production began in 2025.
- CMC production will be consolidated at Nippon Paper's Gotsu plant in Japan.
- The Vacratot plant represented an investment of about HUF 15 billion (EUR 41.4m), including HUF 2.3 billion (EUR 6.4m) of Hungarian state support
- The site was expected to create around 60 jobs and generate about EUR 50m in annual sales
- Commercial production had started less than two years before the suspension
Elopak reported third-quarter 2026 group EBITDA of EUR 51.9m, a 16.8% margin and the highest quarterly figure in its history, on revenue of EUR 308.4m, up 6.5% year on year. Americas EBITDA fell 8.2% to EUR 20.1m as board supply disruption linked to the Nippon incident limited volume growth, while EMEA posted adjusted EBITDA of EUR 44.5m, a 20.4% margin, on revenue up 7.5%.
Why this mattersA leading carton maker's results show European carton demand and pricing holding up while a single supplier disruption still constrains its US growth and margins.
- Q3 2026 group EBITDA was EUR 51.9m at a 16.8% margin, the highest quarterly EBITDA in company history
- Q3 group revenue was EUR 308.4m, up 6.5% year on year (6.0% at constant currency)
- Americas revenue rose 5.9% to EUR 97.5m but EBITDA fell 8.2% to EUR 20.1m, margin 20.6% from 23.8%, on board supply disruption linked to the Nippon incident
- Supply disruption cost EUR 2.6m in Q3 not yet covered by insurance; group margin would have been about 17.5% without it
- EMEA revenue was EUR 218.1m, up 7.5%, with adjusted EBITDA of EUR 44.5m, a 20.4% margin
- Adjusted EPS rose 37.8% to EUR 0.09; leverage held at 2.2x
- Washington's Department of Labor & Industries fined Nippon Dynawave Packaging Company more than $77,000 over the April 2026 incident at its paper mill.
- A worker waded into pulp at about 145 degrees Fahrenheit to close a drain valve and nearly fell into a concealed four-foot sinkhole.
- Regulators cited the company for failing to protect workers from extreme-heat and engulfment hazards.
Most union employees returned on 12 October 2026 to Nippon Dynawave Packaging's mill in Longview, Washington, nearly five months after a chemical tank implosion on 26 May 2026 killed 11 workers. The mill is not yet at full capacity, and staff not yet scheduled to return will be paid through 17 January 2027, according to the AWPPW union.
Why this mattersWith most of the workforce back but the mill still below full capacity, output from Longview remains constrained after an accident that killed 11 employees.
- A chemical tank implosion at the Longview, Washington mill on 26 May 2026 killed 11 employees and injured several others, including a firefighter.
- The tank released hundreds of thousands of gallons of white liquor, the chemical used to break wood down into pulp.
- Most union members represented by the AWPPW returned to work on 12 October 2026, nearly five months after the incident.
- The mill was still not operating at full capacity as of 12 October 2026.
- Employees not yet scheduled to return continue to be paid through 17 January 2027, according to the union's Washington area representative.
Nippon Dynawave Packaging Co. LLC, which runs a Pacific Northwest pulp and paper mill where 11 employees died when a chemical tank burst in May 2026, has told a Washington judge that a wrongful death suit over the incident cannot proceed. The company argues the claim is barred by the state's workers' compensation law, which generally shields employers from civil suits over workplace injuries. The filing is dated 9 October 2026.
Why this mattersA successful immunity defence would limit civil liability exposure for pulp and packaging mill operators after mass-fatality workplace incidents.
- A chemical tank burst at the Pacific Northwest mill in May 2026, killing 11 employees.
- Nippon Dynawave Packaging Co. LLC made its filing in Washington state court on 9 October 2026.
- The company argues Washington's workers' compensation law bars the wrongful death suit from proceeding.
Nippon Paper has developed a prototype process to recycle used beverage paper cartons back into base paper for new cartons, which it describes as Japan's first horizontal recycling loop of this kind. The system pulps collected cartons at its Fuji plant, turns the pulp into carton board, and feeds it through subsidiary Nippon Paper Liquid Package Product for conversion and filling on an NS-FUJI aseptic line. The prototype will be shown at TOKYO PACK2026 in Tokyo on 14-16 October 2026.
Why this mattersA working carton-to-carton loop could lift recovery of used beverage cartons beyond the current 38.9% rate and cut reliance on virgin pulp for carton board.
- Nippon Paper has created Japan's first prototype for 'Pack to Pack' horizontal recycling of beverage cartons into carton raw material
- Japan's beverage carton collection rate was 38.9% in fiscal 2024 against an industry target of 50%, per the 2026 carton recycling annual report
- Used cartons are pulped at Nippon Paper's Fuji plant recycling facility dedicated to food and beverage paper containers
- Pulp is made into carton base paper at a Nippon Paper mill, converted into cartons by subsidiary Nippon Paper Liquid Package Product, and filled on the NS-FUJI aseptic filling machine
- Nippon Paper previously recycled most collected carton waste paper into tissue and toilet paper rather than back into cartons
- The prototype will be exhibited at TOKYO PACK2026 at Tokyo Big Sight from 14 to 16 October 2026 as part of the company's PakUpcycle project
Opal has completed the sale of its Australian and New Zealand bag manufacturing operations to Thomastown Bag Solutions Pty Ltd, an affiliate of US family office The Magan Group, trading as Bag Solutions Partners. The deal closed on 1 October 2026, with the Australian business continuing to operate from its Thomastown, Victoria site and the New Zealand unit transitioning over coming weeks. Opal said the divestment lets it concentrate on its integrated recycling, paper and packaging operations.
Why this mattersThe disposal narrows Opal's portfolio to core fibre-based packaging and recycling, a pattern of integrated producers shedding non-core converting units.
- Sale completed 1 October 2026
- Buyer is Thomastown Bag Solutions Pty Ltd, trading as Bag Solutions Partners, an affiliate of The Magan Group
- Deal covers Opal's Australian and New Zealand bag manufacturing business
- Australian operation continues from the Thomastown site in Victoria
- New Zealand business to transition over coming weeks
- The Magan Group says it has completed 30 similar divestment acquisitions
Australian bioenergy company Delorean Corporation and paper and packaging group Opal have completed the concept phase for a proposed anaerobic digestion facility at Opal's Maryvale Mill in Victoria, advancing to the development phase. The plant, estimated to cost around USD 24.6m (AUD 35m), would produce biogas to replace natural gas fuelling the mill's lime kiln, with a final investment decision still to come.
Why this mattersA biogas-fuelled lime kiln would offer a rare decarbonisation route for a hard-to-electrify pulping process, a template other paper mills could follow.
- Concept stage completed for anaerobic digestion facility at Opal's Maryvale Mill, Victoria
- Estimated construction and design investment of USD 24.6m (AUD 35m), subject to revision
- Biogas would replace natural gas fuelling the mill's rotary lime kiln used in chemical pulping
- Delorean to conduct further feasibility assessment ahead of a final investment decision
- Under an existing MOU, the companies may form an equally owned joint venture if the project proceeds to construction
- Delorean holds a right of first refusal over 50 per cent of the project equity
Nippon Paper Industries' Yatsushiro mill in Kumamoto has remained shut since a July 2026 earthquake damaged its chimney, with no restart date confirmed. The Japan Paper Association said on 24 September that a cross-industry emergency support scheme, including Nippon Paper rerouting output from its Iwanuma mill to Kyushu, has prevented disruption to newsprint supply.
Why this mattersShows Japanese papermakers can pool capacity to absorb a single-site outage, reducing the risk of newsprint supply shocks from natural disasters.
- Nippon Paper's Yatsushiro mill in Kumamoto has been offline since a July 2026 earthquake damaged its chimney, with no restart timeline confirmed
- The Japan Paper Association's newsprint committee set up an emergency response headquarters on 31 July to coordinate alternative supply among member companies
- Nippon Paper rerouted newsprint output from its Iwanuma mill in Miyagi prefecture to Kyushu to cover the shortfall
- Association chairman Hiroyuki Isono, also president of Oji Holdings, said on 24 September there is currently no concern over newsprint supply stability
Washington state senator Jeff Wilson plans to introduce legislation in the January 2027 session creating state oversight of above-ground chemical storage tanks at paper mills, following the fatal May 2026 tank collapse at Nippon Dynawave Packaging's Longview plant that killed 11 workers. A Chemical Safety Board report found a contractor had warned Nippon three times since October 2025 that the tank was unfit for continued service. The bill would let a state agency inspect and certify tanks, with daily fines of up to USD 5,000 for non-compliant operators.
Why this mattersNew state tank-safety oversight would raise compliance costs and inspection burdens for pulp and paper mills operating in Washington.
- State Sen. Jeff Wilson will introduce a bill in the January 2027 legislative session to regulate above-ground chemical tanks at paper mills.
- The proposal follows the 26 May 2026 collapse of a tank at Nippon Dynawave Packaging's Longview, Washington mill, which killed 11 workers and injured eight others.
- A Chemical Safety Board report from August 2026 found a contractor had warned Nippon three times since October 2025 that the tank was not fit for continued service.
- Above-ground chemical tanks at Washington paper mills are currently unregulated by state agencies and rely on company self-inspection.
- The bill would let a state agency such as the Department of Ecology inspect and certify tanks, with daily fines of up to USD 5,000 for non-compliant companies.
The US Chemical Safety Board has reported that Nippon Dynawave Packaging kept using a white liquor tank at its Longview, Washington mill although it knew the tank was, in the board's words, "not fit for continued service". The tank, holding more than 500,000 gallons (1.9 million litres), failed in May, killing 11 workers and injuring eight including a firefighter. Washington's Department of Ecology has since filed a violation notice listing 35 citations, and a wrongful-death lawsuit has been filed against the company, which says the full investigative process should establish the record before conclusions are reached.
Why this mattersThe Chemical Safety Board's finding that a tank known to be unfit stayed in service will drive integrity and inspection requirements for liquor storage across North American kraft mills.
- The US Chemical Safety Board reported that the company used the tank although it knew it was "not fit for continued service" (quotation).
- Washington's Department of Ecology filed a post-accident violation notice listing 35 citations.
- A tank holding more than 500,000 gallons (1.9 million litres) of white liquor failed at the Longview mill in May, killing 11 workers and injuring eight, including a firefighter.
- Before the accident the Department of Ecology had issued 54 environmental violation notices since 2016 and fined the company USD 41,500 for eight serious violations.
- The Department of Labor and Industries investigated more than a dozen safety complaints at the plant since 2018, issued almost USD 7,000 in fines and has opened two further investigations.
- More than USD 2.4m in workers' compensation claims have been paid for 169 employees injured at the plant since 2015; a wrongful-death lawsuit has been filed against Nippon Dynawave.
The widow of an electrician killed when a white liquor tank collapsed on 26 May 2026 at Nippon Dynawave Packaging's mill in Longview, Washington, has sued the company in Cowlitz County Superior Court. The claim cites a US Chemical Safety Board preliminary report from August 2026, which found that inspector Applied Technical Services had told Nippon staff the tank was not fit for continued service and faced a high likelihood of failure unless repaired. The mother of two other workers who died filed a separate wrongful death suit in August 2026.
Why this mattersA safety board finding that the tank was flagged as unfit before it failed widens the operator's litigation exposure and puts pulp-mill tank inspection practice under scrutiny.
- Mackenzie Ammons, widow and personal representative of electrician Jared Ammons, filed a wrongful death claim in Cowlitz County Superior Court in September 2026, represented by Seattle firm Osborn Machler & Neff.
- The US Chemical Safety Board's August 2026 preliminary report found that inspector Applied Technical Services had told Nippon staff the tank was not fit for continued service, with a high likelihood of failure unless repaired.
- A white liquor tank collapsed at 7.09am on 26 May 2026 at the Nippon Dynawave Packaging mill in Longview, Washington, releasing an estimated 900,000 gallons of heated caustic chemical used in papermaking.
- The tank had a capacity of 1.2m gallons and the white liquor is maintained at around 200 degrees.
- Jared Ammons and seven other workers were in the electrical maintenance shop for a morning meeting when the liquor broke through the walls, doors and windows, trapping everyone inside.
- The mother of two workers who died, Bradley Kyle Covington and Tyler Scott Covington, filed a separate wrongful death suit against the company in August 2026.
- Inspection reports in July 2025, October 2025 and February 2026 flagged severe corrosion and thinning of the tank's carbon-steel shell, per Chemical Safety Board findings cited in the suit.
- The lawsuit does not specify a dollar amount for damages.
- King's complaint alleges more than a dozen failures including inadequate equipment maintenance, inspection, training and emergency response.
- Nippon Dynawave Packaging said it could not comment on active litigation.
- Damages sought in King's suit are not specified until trial.
Yakult Honsha and Nippon Paper Crecia began full-scale joint trunk transport between Kanagawa and Okayama on 1 September 2026, following a June-to-August trial. The scheme mixes loads of ambient-temperature beverages and household paper products to raise truck load factors as Japan's freight sector faces capacity pressure from stricter driver working-hour rules.
Why this mattersCross-industry load pooling shows how shippers are restructuring logistics to offset Japan's driver-hour caps and rising transport costs.
- Full-scale joint trunk transport between Kanagawa and Okayama began on 1 September 2026, after a June-to-August trial
- Yakult's ambient-temperature beverages are combined with Nippon Paper Crecia's household paper products in mixed loads
- The scheme aims to raise truck load factors amid Japan's tightened driver overtime rules effective 2024
- Yakult reported consolidated revenue of JPY 486.425bn (USD 3.16bn) for the year to March 2026
- Nippon Paper Crecia reported revenue of JPY 128.2bn (USD 832m) for the year to March 2026
Nippon Paper Industries held JPY 842.2bn (USD 5.37bn) of interest-bearing debt at end June 2026, a level flagged as a financial health concern, with a net debt to equity ratio of 1.2x. The group is pursuing asset sales and exits from unprofitable businesses to reduce leverage, compounded by earthquake damage and the halted US Nippon Dynawave Packaging plant following a fatal May 2026 chemical tank collapse.
Why this mattersA core paperboard producer's forced asset sales and business exits could reshape supply and ownership across its packaging and forestry portfolio.
- Interest-bearing debt stood at JPY 842.2bn (USD 5.37bn) as of end June 2026.
- Net debt to equity ratio was 1.2x versus own capital and 1.74x versus shareholders' capital as of end March 2026.
- The company is pursuing asset sales and exit from unprofitable businesses as part of restructuring.
- US subsidiary Nippon Dynawave Packaging's paperboard plant has been halted since a chemical tank collapse in May 2026 that killed 11 and injured 8.
- The group has also been affected by earthquake damage.
