German paper mills register 3 per cent production drop in 2019


Germany's packaging paper and board industry increased output and deliveries in 2019 on strong export business. Sales down by 11 per cent y-o-y.

2019 has been unsatisfactory year for the German paper industry, according to the industry association VDP. German mills produced 22.1 million t of paper and board, 3 per cent less than in the previous year. Total deliveries fell by 2 per cent on weak domestic demand, VDP statistics show.

Production of packaging paper and board recorded 1 per cent growth to 12.1 million t in 2019. At the same time, deliveries increased by 2 per cent y-o-y. While domestic deliveries receded by more than 2 per cent to 5.6 million t in 2019, the industy accelerated its exports by 6 per cent to 6.4 million t.

Production of graphic paper grades dropped by 8.3 percent to 7.1 million t in 2019. Packaging paper and board accounted for 55 per cent of the industry's production volume, according to VDP. Graphic papers, including newsprint, magazine and catalogue paper, and fine paper grades, stand for around 32 per cent of the total output.

Cheap recycled fibre left its mark on packaging paper and board prices

The industry's total sales fell by almost 7 per cent to €14.3bn in 2019. At 2 per cent, the drop in graphic paper sales was less accentuated than in the packaging paper and board segment, which suffered 11 per cent drop in sales.

"This was due to the fact that the lower recovered paper prices were often passed on to customers," said VDP.

This article is part of our free coverage on VDP and the German paper and board industry.

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