The industry has long been characterized by overcapacity and low profitability, leading to intense competition and capacity closures. While capacity consolidation has taken place in some markets such as printing there are still many industry segments with a low degree of concentration. In some market segments new capacities will be added in anticipation of future market growth leading to an imbalance of demand and supply during an economic downturn. Recent acquisitions have been mostly of medium size with companies looking to extend their regional market reach or their capabilities. Large scale consolidation is yet to be seen as global paper companies are consolidating their portfolios in a strive to reach profitability. At the same time non-core business segments have been sold off, often picked up by financial investors.
StepChange supports paper companies to improve performance through strategy definition, cost reduction, production efficiency improvements, turnaround management, merger integration and asset consolidation.