The paper industry in Italy: Time to turn the page

12/16/2014 - Report
ic_blogtagItalyPaperIndustrial ProductionSector Risk
The Italian paper and board production is expected to grow by +3% in 2014, after a significant fall in previous years (-20% from 2007 to 2013). If this rebound is confirmed, the Italian paper production should reach 9 million tons in 2018, keeping its 4th place within Europe, behind Germany, Sweden and Finland.

Three drivers explain this recovery: (i) more specialization on niche markets that enable Italian firms to raise prices, such as tissue papers whose operating margin rate stands at 6-8% on average, three times more than for other kinds of paper products; (ii) growing exports; and (iii) cheaper energy costs, which represent up to 30% of total production cost. Unfortunately, only the first driver can help Italian companies weather (for good) fiercer international competition.

Download the document
The paper industry in Italy: Time to turn the page - Report