Paper: A 2008 retrospective

It's been an historic year for the paper industry, with many company casualties and job losses in the sector. The mills that have closed, both in the UK and mainland Europe, have offered a very real and bleak warning.

One closure that struck a particular chord was Curtis Fine Papers. The independent paper manufacturer had said its turnover was up 15% year-on-year – and that its order books were the "fullest ever seen for July", before collapsing in the same month.

Curtis was an historic and well-respected mill, and its closure came as a shock to the industry. However, many in the market also said it was a sign of the times.

The Scottish Print Employers Federation's director Simon Fairclough argued that its collapse was, "yet another case of an organisation working desperately hard … to compete in an utterly unforgiving market". Others warned that paper mills were selling their paper at unsustainable prices.

Elsewhere in the merchant market there was a lot of activity. Antalis announced it will "ultimately merge" with its sister company, paper manufacturer Arjowiggins.

In the independent market, merchant Premier Paper was acquired by Beswick Paper. At the time, Beswick managing director Graham Griffiths described the move as positive for print, as it created a third major player against the two national merchant groups, Paperlinx and Antalis.

Action against pre-pack deals was also taken, as the National Association of Paper Merchants stood its ground and said it was prepared to protect itself and take legal action against the "dubious" deals. It also made its voice heard with the launch of Two Sides, a campaign to promote the use of paper.

There has been a lot of innovation. Paper companies have focused on customer-supplier relationships, price increases have been successfully implemented, and a lot of overcapacity has been cut back.

They have also created added value and strengthened themselves against competition and the economic downturn.

While it looks like 2009 may well be just as tough as 2008, what is certain is that the market is not just going to stand still.

January
Independent Paper announced it was to close one of its two remaining warehouses… 2,500 staff walked out at Stora Enso plants in Finland after it confirmed dramatic staff layoffs and mill closures… The BPIF said it was "entirely possible" UK book publishers will be hit by rising paper prices following a major crackdown on small-scale polluting paper mills in China

February
M-real withdrew all production from the UK after agreeing to sell its New Thames office paper mill… Paper merchants spoke out against pre-pack deals and customer insolvencies… Antalis appointed Ian George as regional managing director UK and Ireland following the departure Henry Cubbons

March
Norske Skog was subject of speculation as to whether it was on the verge of a sale… Beswick Paper acquired Premier Paper Group from Antalis for £19m… Speculation that Stora Enso and UPM-Kymmene could be set for a merger

April
Norske Skog UK managing director Doug Brown stepped down after nearly 33 years service… Arjowiggins announces plans to apply a price increase to its standard rates… Former PaperCo managing director Alistair Gough was made president of the National Association of Paper Merchants

May
Premier Paper's managing director Fred Haines resigned, financial director Robert Lockwood and marketing manager Abi Doyle left… Mills looked for further price rises after a strong euro and rising raw material costs hit results… Falls in the value of pound versus euro hit building costs at Ecco Newsprint

June
Arjowiggins' fine and thin paper activities to be "ultimately integrated" within Antalis… Paper merchants were blamed for the "self fulfilling prophesy" of Polar Print Group's fall into administration… SAICA planned to build a £250m recycled paper mill in Manchester

July
Curtis Fine Papers went into administration with the loss of 180 jobs… PaperCo managing director Alistair Gough became managing director of Robert Horne, Steve King became managing director of PaperCo… Antalis' regional finance director Giles Harrison left as a consequence of the structural changes announced by the group

August
Sappi Fine Paper Europe entered into consultation to close its 119-staffed Blackburn mill… Elliott Baxter welcomed the potential withdrawal of credit insurance from the paper sector… Paperlinx announced paper price increases of between six and 11%...

September
Paperlinx was criticised by printers after it instigated a fuel charge of 1% per drop… 4,000 UPM workers went on strike in Finland after the company announced restructuring plans… Mondi entered into a consultation process with the 90 staff at its Holcombe mill

October
The NAPM launched Two Sides, the first industry-wide initiative that aimed to set the record straight about paper and the environment… Unite hit out over International Papers announcement that it may close its 371-staff Inverurie mill… PaperCo initiated a number of changes within its operating divisions and reduced the size of its top management board

November
EU competition authorities clear Sappi's proposed £596m acquisition of M-real's coated graphic paper business… More than 500 staff could be affected at Stora Enso's wood products division as it starts negotiations over temporary lay-offs… Arjowiggins enters into consultation with staff at its plant in Dartford, Kent

December
Denmaur Papers and Independent Paper merge operations… M-real announced it will further increase the price of its papers… Sappi Fine Paper Europe will curtail its fine paper production in the coming months by "at least 20%"