The tissue industry`s famous resilience is facing up to the challenge

Tissue company executives need no telling how energy costs not seen in decades are impacting their businesses. They will, however, be keen to know how some of their industry colleagues are fighting back.

MarketIssues provides a snapshot of the immediate challenges, and reveals strategies employed to see out the ordeal.

Spain-based L.C. Paper has been operating for 140 years and exports to more than 40 countries on four continents. General Manager Pau Vila relates the startling figures of the last few years. For 20 years gas prices hovered between €12/MWh and €17/MWh. They are now around €222/MWh, and what was hopefully a peak at €350/MWh – a 2,000% increase. Historically, electricity prices moved between €35/MWh and €60/MWh. Now they are €300/MWh to €400/MWh.

His monthly energy bill has risen, rapidly, from about €350,000 to upwards of €2,000,000.

Managing Director Khalid Saifullah says Star Tissue, UK, scrutinises [every inch of the business to help mitigate each crisis." Negative margins are anticipated and, where possible, mitigated. Elsewhere across Europe, several mills have been forced to reduce production or close over the last few months, some temporarily and some permanently. In Germany one toilet paper company went into insolvency in September.

The responses? Huge investment is going into automation, unnecessary processes are being cut, innovation and productivity boosted. Sustainability projects planned are being brought forward and accelerated.

Poppies Europe, with an energy bill up by 300%, triggered the installation of solar panels covering 90% of the plant`s roof.

Scenarios such as further rampant price developments and potential energy shortages in Europe are now risk assessed and prepared for at Essity. A spokesman said: [In order to avoid and reduce the effects of possible disruptions, we implement a series of measures such as finding alternative fuels and increasing stock volumes. We also have energy price hedges in place and implement energy optimisation measures at all our production facilities."