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.
Sappi Europe announced a 5-7% price increase across its full range of Woodfree Coated (WFC) papers sold in European markets, effective on all new orders and deliveries from 12 October 2026. The company attributes the move to continued escalation of supply chain costs pressuring paper production economics. Customers will be contacted individually by Sappi's sales organisation to discuss implementation.
Why this mattersA price hike of this scale signals persistent cost pressure in graphic paper and may prompt matching moves by competing WFC producers in Europe.
- Price increase of 5-7% applies across Sappi Europe's full Woodfree Coated (WFC) paper range.
- The increase takes effect on all new orders and deliveries from 12 October 2026.
- Sappi cites continued escalation of supply chain costs as the reason.
- Sappi Europe's sales organisation will contact customers individually on implementation.
Plastic Energy has transferred its stake in the TotalEnergies Plastic Energy Advanced Recycling (TEPEAR) facility in Grandpuits, France, giving TotalEnergies full ownership. The plant will keep operating at industrial scale using Plastic Energy's proprietary TAC pyrolysis technology, with the divestment forming part of Plastic Energy's restructuring under returning CEO Carlos Monreal to focus on its Spanish plants and partnerships.
Why this mattersConsolidation of chemical recycling assets under oil majors signals technology licensors retreating from capital-heavy plant ownership toward asset-light licensing models.
- Plastic Energy transferred its stake in the TEPEAR facility in Grandpuits, France, to TotalEnergies.
- TotalEnergies now holds full ownership of TEPEAR.
- The plant continues to use Plastic Energy's proprietary TAC chemical recycling technology.
- Carlos Monreal, Plastic Energy founder, has returned as CEO and is leading a restructuring around core operations.
- Plastic Energy will continue operating chemical recycling plants in Almeria and Seville, Spain.
- Plastic Energy produced its first batch of pyrolysis oil, Tacoil, last year at a joint venture facility with Sabic.
Domtar's Howe Sound pulp mill on British Columbia's Sunshine Coast faces indefinite closure after an August 20, 2026 announcement citing deteriorating markets and a decline in affordable domestic fibre. The provincial government appointed negotiators Don Wright and Don Kayne on September 4, 2026 to work with Domtar, as an industry consultant warns the shutdown could trigger a wider collapse of the region's coastal forest sector. Talks continue amid a broader wave of BC pulp mill curtailments, with Domtar's Crofton mill already closed permanently and Canfor's Northwood mill set to shut before year end.
Why this mattersA permanent Howe Sound closure would remove pulp-log demand for coastal sawmills, accelerating structural decline across British Columbia's integrated forest-products supply chain.
- Domtar announced indefinite closure of its Howe Sound pulp mill on August 20, 2026, citing deteriorating markets and a decline in affordable domestic fibre.
- The mill and associated Bayview Fibre facility employ more than 400 people.
- British Columbia's provincial government appointed negotiators Don Wright and Don Kayne on September 4, 2026 to work with Domtar.
- Domtar's Crofton pulp and paper mill closed permanently, taking hold in early 2026.
- Canfor said in July 2026 it would shut its Northwood pulp mill in Prince George before the end of the year.
- A coalition of 15 forest industry groups and unions called BC's industry "at a breaking point" in a letter to the province.
