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2010 Annual Report of the Austrian Paper Industry

AustrianPaperIndustry © photocase.com/paule.p

© photocase.com/paule.p

May 6, 2011

Supporting Sustainable Development

In the past year, the industry was mostly able to compensate for lost volume resulting from the economic crisis, however profits remained weak.
The year 2010 saw a rebound for the economy, which especially affected the paper market. As the Austrian national product rose by two percent and industrial production rose by seven percent, paper production increased by 8.8 percent. This trend included all areas of paper production. Improved capacity of production facilities proved to be advantageous. During the crisis, large paper machines lay idle for weeks; capacity utilization in 2010 increased to an average of over 90 percent. This further optimized the complex material, energy, and emissions flows. Strong economic activity supported by slightly higher prices led to a 17.1 percent increase in annual turnover over the previous year. However, company results couldn’t keep pace with these positive developments due to severe economic impairment in the area of expenses. During the recovery, some major factors of production became significantly more expensive, such as energy, wood and recovered paper. For example, from mid-2009 to the end of 2010 the cost per ton of recovered paper rose from 60 to 130 EUR.

While paper is doing well against the competition of plastic in the growing area of packaging, the paper production sector is not performing as well. Online/Computer is establishing itself as a substitute medium for quick reading consumption. Not only do individual products have to hold their market position, domestic production facilities also have to compete for lower product costs. The paper factory in Hallein (300,000 t) finally succumbed to this pressure when it was closed by its owner M-real in 2009.

2010 brought more changes to the structure of ownership. To read the entire summary, please click here [pdf, 1,924.1kb].

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