Specialty Paper Chemicals PDF

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Chemicals Contact Customer Care (customercare@ihs.com) if you have any questions.
29 March 2018
Aida Jebens
Stefan Mueller
Wei Yang
Yoshio Inoguchi Specialty Chemicals Update Program

IHS Markit | Specialty Paper Chemicals

Contents
Executive summary 11
Summary Please use Adobe, Chrome, or Internet Explorer to read this file. 12
Abbreviations 17
The pulp and paper industry 19
World 19
NAFTA Contact Customer Care (customercare@ihs.com) if you have any questions. 21
– Paper and paperboard production 22
– Recovered paper 24
– Paper and paperboard consumption 25
– Producing companies 27
– Major pulp and paper industry issues and trends 28
Central and South America 28
Europe 29
– The pulp, paper, and paperboard industry 29
– Industry characteristics 29
– Consolidation, globalization, and specialization 32
– Pulp and paper supply/demand 34
– Pulp 35
– Nonfibrous materials 37
– Recovered paper and board 37
– Paper and board 38
– Environmental issues and trends 40
– Impact on the industry 40
– Issues within the industry 40
– Sustainability 41
– Paper recovery 41
– Product process emissions 42
– Direct food contact 42
– Technology trends 42
Japan 44
– Paper and paperboard supply/demand 44
– Producing companies 47
– Operating rates 47
China 48
– Pulp and paper supply/demand 48
– Pulp 48
– Paper and paperboard 49
– Graphic 50
– Packaging 51
– Sanitary and household 51
– Specialty paper and board 52
– Pulp and paper producing companies 52
– Pulp 52
Confidential. © 2018 IHS Markit™. All rights reserved 2 29 March 2018


– Paper and paperboard 53
– Environmental issues 55
Other Asian countries 56
Please use Adobe, Chrome, or Internet Explorer to read this file.
– South Korea 56
– Taiwan 57
Overview of the specialty paper chemicals industry 59
NAFTA 59
Contact
– Structure of the industryCustomer Care (customercare@ihs.com) if you have any questions. 59
– Major participants 60
– Mergers and acquisitions 61
– Operating characteristics 62
– Research and development 62
– Manufacturing and technology 63
– Marketing and customer service 63
– Profitability and cost structure 64
– Government regulations 65
– Trends and opportunities 66
– Critical factors for success 66
Europe 66
– Structure of the industry 66
– Mergers and acquisitions 72
– Marketing 75
– Biocides 77
– Bleaching chemicals 78
– Chelating agents 78
– Wet-strength resins 79
Japan 86
– Marketing 88
China 91


– Marketing 94
Specialty paper Contact
chemicalCustomer
products Care (customercare@ihs.com) if you have any questions.
and functions 98
Pulp and fiber treatment chemicals 99
– Bleaching specialties 99
– Deinking agents 100
– Pulping specialties 102
– Enzymes 103
Processing aids 104
– Biocides 104
– Defoamers 106
– Pitch- and deposit-control agents 107
– Retention and drainage aids 109
Functional chemicals 112
– Dry-strength additives 112
– Dyes, pigments, and fluorescent whitening agents 113
– Pigment binders 114
– Sizes 117
– Specialty coatings 118
Specialty paper chemical markets 121
World summary 121
NAFTA 122
– Pulp and fiber treatment chemicals 123
– Consumption and markets 123
– Market participants 124
– Prices 124
– Future trends and strategic issues 124
– Prices 126
– Processing aids 127
– Prices 128


– Prices 129
– Defoamers 130
– Prices 131
Contact
– Future trends Customer
and strategic issuesCare (customercare@ihs.com) if you have any questions. 131
– Biocides 131
– Prices 133
– Functional chemicals 133
– Prices 135
– Prices 137
– Prices 139
– Sizes 139
– Prices 141
– Prices 142
– Prices 145
Central and South America 145
Europe 147


– Prices 150
Contact Customer Care (customercare@ihs.com) if you have any questions.
– Prices 152
– Prices 153
– Enzymes 154
– Prices 154
– Consumption and market 154
– Prices 156
– Prices 157
– Biocides 157
– Prices 160
– Defoamers 162
– Prices 163
– Prices 166


– Prices 170
– Prices 173
– Sizes 173
Contact
– Consumption Customer Care (customercare@ihs.com) if you have any questions.
and markets 173
– Prices 175
– Prices 176
– Prices 178
Japan 178
– Prices 181
– Prices 182
– Prices 183
– Defoamers 183
– Prices 186
– Prices 188


– Biocides 188
– Prices 189
– Prices 190
– Prices 193
– Sizes 193
– Prices 195
– Prices 197
– Prices 198
– Prices 200
China 201
– Prices 203


– Prices 205
– Enzymes 205
– Prices 207
– Prices 208
– Prices 210
– Biocides 211
– Prices 212
– Defoamers 213
– Prices 214
– Prices 215
– Prices 217
– Prices 219
– Sizes 219
– Prices 221


– Prices 224
– Prices Contact Customer Care (customercare@ihs.com) if you have any questions. 225
– Prices 226
Other Asia 227
Oceania 228
Revisions 229


Executive summary
In 2017, the global consumption of specialty chemicals used in the production of paper and paperboard amounted to $15.2
billion. China was the largest consumer with $4.5 billion or 30% of the global consumption. The European market was
valued at roughly $3.4Please use
billion and Adobe, Chrome,
represented 22% of totalorconsumption.
Internet Explorer to read this
NAFTA accounted file.billion or 22% of the
for $3.3
total. Japan, the rest of Asia, Oceania, and Central and South America consumed another $4.0 billion worth of specialty
chemicals.
The specialty paper chemicals

Contact coveredCare
Customer in this(customercare@ihs.com)
report are divided into three groups:
if you have any questions.
• Pulp and fiber treatment chemicals such as bleaching, pulping, and deinking chemicals
• Processing aids, which are used to improve the efficiency of paper production including defoamers, pitch-control agents,
biocides/slimicides, and retention and drainage aids
• Functional chemicals, which are used to impart various properties to the finished paper ranging from improved strength
and optical properties to enhanced printability (dry- and wet-strength resins, sizing agents, coating binders, and
specialties, as well as dyes, pigments, and fluorescent whitening agents)
Water treatment chemicals used in the paper industry are not included in the analysis.
The growth in the overall demand for paper chemicals has been eroding since 2008. The shift from print to digital means
of communication has led to the closure of small, inefficient mills and the consolidation of the customer base. Demand for
packaging and sanitary and household grades of paper should help stabilize the market, but overall future growth will be
very slow. In constant US dollar terms, specialty paper chemicals consumption on a global basis is forecast to grow at less
than 1% annually over the next five years.
Regionally, growth patterns are different. Consumption is expected to decrease or remain static in the established regions
of NAFTA, Europe, and Japan. The prospect remains somewhat positive for Central and South America, China, and the rest
of Asia. However, growth has slowed in these regions as well, and is projected at only 2–2.5% per year during the next five
years. China’s consumption, which had averaged 6–6.5% per year in recent years, has slowed dramatically because of
overcapacity in the paper industry and the government’s push for stricter environmental compliance. China’s
consumption of specialty paper chemicals is also characterized by a disproportionately high production of lower-value
grades of paper and paperboard, which require less specialty paper chemicals.


Summary
This report focuses on the specialty chemicals consumed in the processing of pulp and manufacture of paper. It excludes
commodity chemicals such as chlorine and oxygen, hydrogen peroxide, sodium salts, and sulfuric acid (used mainly in
Please
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excludes water
treatment chemicals used in the paper industry. Specialty paper chemicals can be classified into three groups according to
their function and point of use in the paper production process:
• Pulp and fiber treatment

Contact chemicals Care
Customer such as(customercare@ihs.com)
deinking, bleaching, and pulping chemicals
• Processing aids, which are used to improve the efficiency of paper production, including retention and drainage aids,
pitch-control agents, defoamers/deaerators, and biocides/slimicides
• Functional chemicals, which are used to impart various properties to the finished paper, ranging from improved
strength and optical properties to enhanced printability (dry- and wet-strength resins, sizing agents, coating binders,
and specialties, as well as dyes, pigments, and fluorescent whitening agents)
Specialty paper chemicals help reduce the consumption of water and energy, increase the use of wastepaper, and save raw
materials by decreasing the paper weight without sacrificing the functional or optical properties of the paper sheet. They
also enabled the tremendous increase in the speed of paper machines. Often, they are formulations of several chemicals,
but there are also many single-chemical products.
The estimated 2017 global value of specialty paper chemicals consumption was $15.2 billion. Of this, China was the largest
consumer with $4.5 billion or 30% of the global consumption. The European market was valued at roughly $3.4 billion
and represented 22% of total consumption. NAFTA accounted for $3.3 billion or 22% of the total. Japan, the rest of Asia,
Oceania, and Central and South America consumed another $4.0 billion worth of specialty chemicals. The following table
shows the regional breakdown for the various specialty paper chemical classes for 2017.
World consumption of specialty paper chemicals—2017

(millions of dollars)
Central Other
and Asia
South and
NAFTA America Europe Japan China Oceania Total
Pulp and fiber treatment chemicals
Bleaching specialties 69 3 63 2 79 4 220
Deinking agents 52 25 45 17 130 29 299
Pulping specialties 1 0.5 1 12 9 16 39
Processing aids
Retention and drainage aids 200 50 220 23 250 36 780
Pitch-control agents 270 58 185 20 37 34 604
Defoamers/deaerators 200 13 116 30 70 47 477
Biocides 82 10 57 23 120 36 328
Functional chemicals
Pigment binders/coatings 753 250 1,160 355 2,231 384 5,133
Dry-strength additives 566 120 642 407 631 440 2,805
Sizes 220 55 282 251 545 251 1,604
Specialty coatings 345 30 219 295 91 319 1,299
Dyes, pigments, and fluorescent whitening agents 238 60 190 60 280 92 919
Wet-strength resins 290 65 170 40 81 35 680
Total 3,286 740 3,352 1,536 4,554 1,721 15,188
Regional share (percent) 22% 5% 22% 10% 30% 11% 100%
Average annual volume growth rate, 2017–22 (percent) 0.0% 2.7% -1.1% -0.3% 1.7% 0.6% 0.5%
Source: IHS Markit. © 2018 IHS Markit


World consumption of specialty chemicals for paper and board—2017
Central and South

America
Japan 5%
Please10%use Adobe, Chrome, or Internet Explorer to read this file.
China
30%
Other Asia and
Oceania
11%
NAFTA
22% Europe
22%
Total = $15.2 billion
Source: IHS Markit © 2018 IHS Markit
Functional chemicals, which include coating binders, dry- and wet-strength additives, sizes, and specialty coatings, as well
as dyes, pigments, and whitening agents, are the largest product class with an estimated value of $12.4 billion in 2017.
Processing aids were $2.2 billion and chemicals for pulping and fiber treatment were another $0.6 billion.
World consumption of specialty paper chemicals by product class—2017
Pulp and fiber

treatment chemicals
4%
Processing aids
14%
82%

The largest consumer of functional chemicals worldwide was China. It had the highest consumption of pigment binders,
dry-strength additives, sizes, and dyes, pigments, and fluorescent whitening agents in the world.


World consumption of functional chemicals for paper and board—2017
Central and South
America
5%
Japan
11%
China
31%
Other Asia and

Contact
Oceania Customer Care (customercare@ihs.com) if you have any questions.
12%
NAFTA
19%
Europe
22%
NAFTA and Europe were the largest consumers of process aids for paper and board manufacturing in 2017. This product
class includes retention and drainage aids, pitch-control agents, defoamers, and biocides/slimicides.
World consumption of processing aids for paper and board—2017
Central and South Japan

America 4%
6%
Other Asia and

Oceania NAFTA
7% 34%
China
22%
Europe
27%

China is the largest consumer of pulp and fiber treatment chemicals, which include bleaching and pulping specialties and
deinking agents. Because it is deficient in pulp resources, China imports significant volumes of wastepaper and
paperboard for conversion to pulp. Thus, it has the highest consumption of deinking agents and bleaching specialties in
the world. NAFTA and Europe are also major consumers of these chemicals.


World consumption of pulp and fiber treatment chemicals—2017
Central and South
America
Japan/Other 5%
Asia/Oceania
14%
China
39%
Europe
20%
NAFTA
22%
The consumption value of the global specialty paper chemicals industry has been eroding at an average annual rate of 0.6%
since 2008. Consumption has been impacted permanently by the shift from print to digital means of communication,
which led to the closure of small, inefficient mills, and the consolidation of the customer base. Demand for packaging and
sanitary and household grades of paper should help stabilize the market, but overall future growth will be very slow. In
constant US dollar terms, specialty paper chemicals consumption on a global basis is forecast to grow at less than 1%
annually over the next five years.
Regionally, growth patterns are different. Consumption is expected to decrease or remain static in the established regions
of NAFTA, Europe, and Japan. The prospect remains somewhat positive for Central and South America, China, and the rest
of Asia. However, growth has slowed in these regions as well, and is projected at only 2–2.5% per year during the next five
years. China’s consumption, which had averaged 6–6.5% per year in recent years, has slowed dramatically because of
overcapacity in the paper industry and the government’s push for stricter environmental compliance. China’s
consumption of specialty paper chemicals is also characterized by a disproportionately high production of lower-value
grades of paper and paperboard, which require less specialty paper chemicals.
The major objectives for paper producers are attaining or improving profitability, meeting customer needs, and embracing
technological change, particularly to meet health, safety, and environmental regulations. The changing needs of paper
producers and a highly competitive marketplace create a very selective environment for improved, new, and different
specialty paper chemicals. The major issues impacting the global specialty paper chemicals industry are as follows:
• Consolidation and globalization among pulp and paper manufacturers and their resulting interest in working with
fewer suppliers and in standardizing their products with the same chemical supplier in multiple locations. This is a key
force shaping the specialty paper chemicals industry worldwide. The market for specialty paper chemicals has
traditionally been highly fragmented. Paper companies are pursuing ever-larger supply contracts, achieving volume
discounts and at the same time requiring supplier companies to provide goods and services globally to all of their
locations.
• Reduced R&D work by paper companies and increasing reliance on suppliers to create new products and processes.
• Higher utilization of reclaimed fiber from postindustrial and postconsumer waste in place of virgin pulp. Recycled
sources of furnish require continued use of chemicals such as deinking agents, defoamers, chelates, thickeners, fillers,
and coating pigments.


• Conversion of mills that once produced newsprint and printing/writing grades of paper to packaging or tissue
manufacture, which changes the requirements for certain classes of specialty chemicals.
• Closed-loop water systems, reducing effluent discharge, and creating new chemical demands.
• Automated, faster papermaking and printing speeds. Use of ink-jet printing, requiring higher-quality, and lower-basis-
weight papers.
The largest suppliers

Contact of specialty
Customer paperCare
chemicals in the NAFTA region, Europe,
(customercare@ihs.com) and have
if you Japan/Asia
anyare as follows:
questions.
Largest suppliers of specialty paper chemicals by region—2018
NAFTA Europe Japan/Asia
Archroma Archroma Arakawa Chemical Industries
BASF BASF Archroma
Buckman Laboratories Eka Chemicals/Akzo Nobel BASF
DowDuPont Kemira Harima Chemicals
Ecolab/Nalco Kurita Water Industries JSR
Ingredion Solenis Kao
Kemira Trinseo Kuraray
Solenis Kurita Water Industries
Trinseo Seiko PMC
Toho Chemical Industry


Abbreviations
Abbreviations
ABDM Alkylbenzyldimethylammonium chloride
AES Alcohol ether sulfate
AKD Alkyl ketene dimers
AOX Adsorbable organic halides
AQ Anthraquinone
ASA Alkenyl succinic
Contact anhydride Care (customercare@ihs.com) if you have any questions.
Customer
ASAM Alkalischer Sulfitaufschluss mit Anthrachinon und Methanol
ATM Alkyltrimethylammonium
BBAB bis(Bromoacetoxy)-2-butene
BCDMH 1-Bromo-3-chloro-5,5-dimethylhydantoin
BGVV Bundesamt für gesundheitlichen Verbraucherschutz und Veterinärmedizin
BIT Benzisothiazolinone
BNPD Bromonitropropanediol
BOD Biological oxygen demand
BPR Biocidal Product Regulation
CEPI Confederation of European Paper Industries
CMC Carboxymethylcellulose
COD Chemical oxygen demand
CSTEE European Scientific Committee on Toxicity, Ecotoxicity and the Environment
CTMP Chemithermomechanical pulp
DADMAC Diallyldimethylammonium chloride
DBNPA 2,2-Dibromo-3-nitrilopropionamide
DDC Sodium diethyl dithiocarbamate
DEBD Sodium ethylene bisdithiocarbamate
DEP Dry-end process
DMTT tetra-Hydro-3,5,-dimethyl-1,3,5-thiadiazine-2-thione
DTPA Pentasodium diethylenetriamine pentaacetate
ECF Elemental chlorine–free
ECH Epichlorohydrin
EDTA Ethlylenediaminetetraacetic acid
EMEA Europe, Middle East, and Africa
EO Ethylene oxide
EPA Environmental Protection Agency
EPAS European Producers of Antimicrobial Substances
EU European Union
FAS Formamidine sulfinic acid; known as thiourea dioxide in China
FIFRA Fungicide, Insecticide and Rodenticide Act
FSC Forest Stewardship Council
FWA Fluorescent whitening agents
GCC Ground calcium carbonate
GDP Gross domestic product
HEDTA N-(Hydroxyethyl)-ethylenediaminetriacetic acid
HEMC Hydroxyethyl methylcellulose
HPMC Hydroxypropyl methylcellulose
IPPC Integrated Pollution Prevention and Control Directive
LWC Lightweight coated paper
MBT Methylene bisthiocyanate
MF Melamine-formaldehyde resins
NAFTA North American Free Trade Agreement
NBR Nitrile-butadiene latex
NTA Nitrilotriacetic acid
OCC Old corrugated containers
PAC Polyaluminum chloride
PAE Polyamide-epichlorohydrin resins
PAM Polyacrylamide


Abbreviations (continued)
PCC Precipitated calcium carbonate
PCPA Pest Control Products Act
PDMD Potassium dimethyl dithiocarbamate
PEI Polyethyleneimine
PEO Polyethylene oxide
PO Propylene oxide
PRTR Pollutant Release and Transfer Register
PTS Papiertechnische
Contact CustomerStiftung Care (customercare@ihs.com) if you have any questions.
PVAm Polyvinylamine
R&D Research and development
SAA Styrene-acrylate acids
SAE Styrene-acrylate ester copolymers
SB Styrene-butadiene
SDMD Sodium dimethyl dithiocarbamate
SMA Styrene–maleic anhydride
SP 2-Methyl-4-isothiazoline-3-one and 5-chloro-2-methyl-4-isothiazoline-3-1
TCF Totally chlorine-free
TCMTB Thiocyanomethylthiobenzothiazole
TDO Thiourea dioxide (also known as FAS)
TMP Thermomechanical pulp
TOC Total organic chlorine
UF Urea-formaldehyde resins
VFA Vinylformamide
WEP Wet-end process


The pulp and paper industry
World
The following table summarizes key Adobe,
Please use production and consumption
Chrome, data Explorer
or Internet for the global
to paper
read industry
this file.in 2016 (the latest
year for which complete production statistics are available).
The global paper industry—2016a

Paper and board Per capita paper
production and paperboard
Population (millions of consumption
(billions) metric tons) (kilograms)
NAFTA 0.48 88 182
Central and South America 0.50 16 32
Europe 0.84 91 108
China 1.37 101 74
Japan 0.13 26 207
Other Asia and Oceania 2.57 52 20
Total 7.12 374 53
a. Excludes the impact of trade.
World production of paper and paperboard—2016
Central and South

America
Japan 4%
7%
China
27%
Other Asia and
Oceania
14%
NAFTA
24% Europe
24%


Regional per capita consumption of paper and paperboard—2016
(kilograms)
250
200
150
100 207
182
50 108
74
53
32 20
0
Japan NAFTA Europe China Central and Other Asia and World
South America Oceania
As illustrated in the above figures, China is the world’s largest producer of paper and paperboard, accounting for almost
30% of global production in 2016. China took the number one spot in 2014, overtaking former production leaders Europe
and NAFTA.
In terms of consumption, Japan, NAFTA, and Europe have the most developed markets with per capita consumptions that
ranged from two to four times larger than the world average in 2016.
According to RISI, packaging is the largest market, with a 55–60% share of the global demand for paper and board.
Printing/writing and newsprint represent about 30%, while tissue and other miscellaneous paper and board account for
the remainder. The demand for packaging grades of paper (case materials, carton board, wrappings) is growing worldwide,
driven by the expansion of online retailing. In contrast, the demand for newsprint papers and coated and uncoated papers
for printing and writing has declined because of the wider acceptance of digital media and online publishing. For years,
electronic displays have been improving in quality and have come down in price while end users have grown increasingly
comfortable with viewing documents on screens. Rather than printing, many home and business users are now
increasingly content to rely solely on electronic documents. This trend has become more pronounced in the last five years
as younger people join the workforce. The demand for sanitary and household grades of paper such as tissue and towels is
also another growth area, although they are a smaller sector compared with packaging and printing papers. Of all the
paper and board segments, this segment is also the most resilient to fluctuations in economic cycles.
The consolidation of the paper industry in North America has created large, globally operating companies including
International Paper, WestRock, Kimberly-Clark, and Georgia-Pacific. In the NAFTA region, paper and board production
declined from 100 million metric tons in 2008 to 88 million metric tons in 2016, with most of the drop occurring in
newsprint production. However, the rate of capacity reduction is slowing down. The closure of older, smaller inefficient
newsprint mills is essentially complete, and many newer, larger mills are being converted to production of packaging or
tissue grades of paper.
The market share of Europe’s top five paper producers rose from 32% in 1990 to over 80% in 2016. The leading suppliers of
pulp, paper, and board are the Finnish and Swedish conglomerates Svenska Cellulosa Aktiebolaget (SCA), Stora Enso,
Mondi, UPM, and Sappi. Similar to NAFTA, Europe underwent major capacity rationalization in recent years owing to the
declining demand for newsprint and printing/writing paper. In 2012 alone, six paper mills cut or closed nearly 1.5 million
metric tons of capacity, accompanied by job losses. The rate of closure has decelerated; between 2014 and 2016, only
650,000 metric tons of capacity closed. New investments in the 2014–17 period were directed to board or tissue
production.


Japanese papermaking companies have increased their presence outside Japan, particularly in China, through alliances
and/or joint ventures not only for pulp supply but also for paper production and supply, since the Japanese market has
become mature and is slowly declining.
China’s pulp and paperPlease

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Nevertheless, the per capita consumption of paper and paperboard was 74 kilograms in 2016, which is higher than the
world average. The major difficulties of the industry in the next few years are the increasing production cost (especially
the costs of energy and raw materials), stricter enforcement of environmental regulations, and increasing labor costs.
Although China’s production of paper and board was the largest in the world in 2016, it does not produce enough to satisfy
domestic consumption, and has to import high-quality paper and pulp. China is also the world’s largest importer of
wastepaper, which provides almost 80% of all pulp used in Chinese mills. Between 2012 and 2016, China imported around
29 million metric tons of wastepaper annually for conversion to pulp. China’s lack of wood resources makes the
development of nonwood fiber sources, such as bamboo, straw, and bagasse, an important objective for the paper and
paperboard industry.
Paper and board manufacturers continue to adapt to structural problems such as:
• Overcapacity in declining markets.
• Low price levels and high energy and raw material prices.
• Increasing competition from low-cost producers in emerging markets.
• Shift from traditional paper products to a rapidly increasing use of electronic media.
These factors have put increased pressure on revenues and operating earnings. The paper and board industry will continue
to shift a significant portion of pulp and paper production from the mature economies of North America, Western Europe,
and Japan to the faster-growing emerging economies in Asia Pacific (e.g., China, India, Indonesia), Latin America (Brazil,
Chile, Argentina), Eastern Europe, and Russia and to areas with cheaper sources of raw materials such as pulp from fast-
growing eucalyptus trees. . Another option being pursued by established pulp and paper mills is to diversify into other
sectors by using wood cellulose as a source for products like biofuels and biochemicals, as well as for power generation.
Among the specialty chemical markets, specialty paper chemicals present a particular challenge. Since the 1980s, paper
prices have generally remained low, yielding relatively low margins for producers, particularly in the United States. In
short, the paper industry is a highly cost-sensitive customer, and this sensitivity explains much of the behavior of
chemical buyers and sellers in this market.
NAFTA
In 2016, the latest year for which complete production statistics are available, NAFTA production of paper and paperboard
amounted to 87.9 million metric tons. The United States is the largest producer and consumer of paper and paperboard in
the NAFTA region. The following figure shows the geographic shares of 2016 production of paper and paperboard.


NAFTA production of paper and paperboard─2016
Mexico
6%
Canada
12%
United States
82%
Total production = 87.9 million metric tons

Paper and paperboard production

The following table shows historical production of paper and paperboard in the NAFTA region.
NAFTA production of paper and paperboard

(millions of metric tons)
United
States Canada Mexico Total
1990 72.0 16.5 2.9 91.3
2000 86.3 20.9 3.9 111.0
2005 83.7 19.5 4.8 108.0
2010 77.7 12.8 4.7 95.1
2015 72.7 10.3 5.3 88.3
2016 72.1 10.1 5.6 87.9
Sources: Food and Agriculture Organization of the United Nations, Statistics Division (data for 1990–2010); RISI Annual Review 2017 (all other data).
© 2018 IHS Markit
Paper and paperboard production in both the United States and Canada peaked in the early 2000s and has trended
downwards since. By 2016, US output was 16% lower than in 2000, while Canada’s production was 52% lower compared
with 2000. For Mexico, the smallest producer in the region, annual production continued to grow through the mid-2000s,
plateauing at 4.7–4.8 million metric tons per year between 2010 and 2013 before growing at an average annual rate of 6%
during 2014–16 because of an increase in production of packaging paper and board.


NAFTA production of paper and paperboard
90
80 Please use Adobe, Chrome, or Internet Explorer to read this file.

70
60
50 Contact Customer Care (customercare@ihs.com) if you have any questions.

40
30
20
10
0
1990 2000 2005 2010 2015 2016
United States Canada Mexico

Sources: IHS Markit; RISI Annual Review 2017. © 2018 IHS Markit
Similarly, wood pulp production has been declining in NAFTA as shown in the following table.
NAFTA production of wood pulp

United
States Canada Mexico Total
1990 56.4 22.8 0.8 80.0
2000 57.2 26.5 0.6 84.2
2005 54.2 25.4 0.3 79.8
2010 50.3 18.6 0.2 69.0
2015 47.8 16.6 0.1 64.4
2016 47.8 16.5 0.1 64.4
© 2018 IHS Markit
NAFTA production of wood pulp

60
50
40
30
20
10
0
1990 2000 2005 2010 2015 2016



Of the 2016 production of wood pulp, 80% was chemical-grade, 15% was mechanical, and 5% was semichemical. The kraft
process (alkaline) was used in 99% of pulp production, with 1% based on the sulfite process (acid).
Both the United States and Canada are net exporters of paper and paperboard, while Mexico is a net importer. Canada
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supplies most of the US usepaperboard
paper and Adobe, Chrome, or Internet
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both the United toand
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of paper and paperboard to Mexico. In 2016, NAFTA exported 2.8 million metric tons of paper and board to the world.
Paper manufacturing is a significant portion of the US economy. According to the US Census Bureau, paper
manufacturing, includingCustomer
Contact pulp, paper,Care
and paperboard, is one of the 10 largestif manufacturing
(customercare@ihs.com) you have any industries in the United
questions.
States. In terms of value of shipments, it is worth $160 billion, roughly 20% the size of US chemical manufacturing.
Despite falling production, the United States remains the world’s largest pulp, paper, and paperboard producing and
consuming country. Per capita paper/paperboard production in 2016 for the United States was 213 kilograms. The US
paper and paperboard industry is mature, and consumption now grows at a rate significantly less than the overall economy
and less than global consumption growth. Although demand for paper in packaging applications provides opportunities
for growth, the overall market for paper and board continues to shrink owing to the shift to digital communication, which
reduces print advertising and newspaper and magazine sales.
Recovered paper
Recycled paper recovery and utilization has become an integral part of the paper industry. In 2016, NAFTA produced an
estimated 56 million metric tons of recovered paper, representing 64% of total paper and board production. The following
table and chart show historical trends in both production and recovery rates.
NAFTA production of recovered paper

Percent of total
United paper and board
States Canada Mexico Total production
1990 26.4 1.3 0.9 28.6 31
2000 43.4 2.6 0.9 46.9 42
2005 45.1 2.7 0.9 48.7 45
2010 46.9 3.4 3.0 53.3 56
2015 47.3 4.3 4.5 56.1 64
2016 47.4 4.6 4.6 56.5 64
© 2018 IHS Markit


NAFTA production of recovered paper
50
45 Please use Adobe, Chrome, or Internet Explorer to read this file.

40
35
30
25 Contact Customer Care (customercare@ihs.com) if you have any questions.

20
15
10
0
1990 2000 2005 2010 2015 2016
Prior to 1990, recovered paper provided only 20–25% of the US paper industry’s fiber requirements. This rate was
significantly boosted when several state and municipal regulations, as well as federal procurement guidelines, mandated
50% or more recycled content for new printing and writing papers, and 20% postconsumer recycled scrap paper content
for newspapers. The amount of recovered paper (recycling of scrap paper) utilized as furnish for various grades of paper
and paperboard continued to increase through the years. By 2016, the recovery rate was at 67%. Old corrugated containers
have historically been the most highly recovered material, followed distantly by newspapers. Most are used to produce
new corrugated containers, as well as tissue papers.
Canada’s paper recycling program began in 1991. By 2016, the recovery rate reached 63%. Québec and Ontario are the most
aggressive provinces in requiring paper companies to participate and fund paper recycling programs. Canada augments its
domestically recovered paper with imports, which in 2016 provided an additional 27% of the recovered fiber used in
furnish. In 2016, about 2.8 million metric tons of recovered paper were consumed to make Canadian paper and
paperboard.
Mexico’s paper recycling rate is the highest in NAFTA at over 80% in 2016. Most is recovered by scavengers and
supplements domestically produced wood pulp, which only serves about 15–20% of Mexico’s paper mill needs.
With continuing technological advances in deinking, repulping, and sheet formation using higher recycled content, many
mills have found recovered paper to be a raw material cost advantage over purchasing and processing virgin pulp.
Paper and paperboard consumption

In 2016, close to 85 million metric tons of paper and paperboard were consumed in NAFTA. The United States was the
largest consumer, with an 83% share of NAFTA consumption, followed by Mexico at 10% and Canada at 7%. Packaging
paper and board accounted for 58% of consumption as shown in the following chart.


Central consumption
NAFTA and South American
of paperconsumption of paper and paperboard
and paperboard
(percent)
70%
60%
50%
40% Contact Customer Care (customercare@ihs.com) if you have any questions.

30%
20%
10%
0%
Packaging Printing and writing Tissue Newsprint Other
2013 2016
Packaging applications include containerboard, cartonboard, and wrapping paper. Principal end uses are grocery bags,
multiwall shipping sacks, industrial wrapping papers, and industrial papers used in electrical insulators, masking tapes,
abrasives, decorative laminates, gaskets, and filters. Specialty packaging grades include pressure-sensitive release papers,
flexible packaging food wraps, glassine and greaseproof papers, and vegetable parchment papers. Production of
commodity kraft paper products has been declining since the 1980s, largely because of the displacement of grocery bags
by plastic bags.
Packaging is not only the largest segment of paper and board consumption, but also the fastest growing. It is used to track
the growth of the general economy.
Printing and writing papers are the second-largest application for paper and board, but unlike packaging have had
fundamental changes in the marketplace. Competition from electronic media and technology has lessened demand for
printed products. Email and social media such as Facebook and Twitter have permanently altered the way people
communicate, dampening growth for this paper segment.
Printing and writing papers are derived from free sheet (wood-free) and groundwood grades of paper. Uncoated free sheet
accounted for 45% of the NAFTA consumption of printing/writing grade. There are a myriad of end uses including copier
and computer printer paper; personal and business stationery and envelopes; letter, memo, offset printing, book, manual,
and tablet paper; greeting cards; carbonless basestock for business forms; textbook paper; office duplicating, thermal and
fax papers; and stationery printing papers.
Coated papers represented 36% of paper consumed in NAFTA for printing and writing in 2016. Coated papers are second
only to uncoated free sheet (largely used for copiers and printers) in terms of volume in the printing and writing papers
category. Large volumes of specialty paper chemicals are used to manufacture coated papers, which are used mainly for
printing of directories, catalogs, magazines, direct mail advertisements, annual reports, and product sales brochures.
Lighter-weight publication papers, recycled content, and overall coating costs are significant producer concerns. Additions
to coated paper capacity have been driven partly by the rise of digital printing and technological improvements in inks and
printing processes for quality color. Coated papers are the premier substrate for four-color printing including ink-jet.
Uncoated groundwood (mechanical) papers represented 18% of paper consumed in NAFTA for printing and writing. They
are a step brighter than newsprint and have a smoother surface. Newsprint mills can convert relatively easily to
production of groundwood specialty papers. Major end users are advertisers, and the major applications are Sunday
newspaper inserts, direct mail, paperback books, directories, magazine supplements, and catalogs. Supercalendered
papers are uncoated groundwood with appearance and printing performance similar to a lightweight coated sheet.


Tissue represented 12% of NAFTA paper consumption in 2016. Tissue products include paper towels, bathroom tissues,
facial tissues, napkins, wipes, and wadding papers. About 50% of US tissue and toweling is made from recycled paper.
Consumer tissues account for 65% of the entire category, with commercial/industrial representing the remainder. The
tissue segment has some of the highest profit margins and enjoys the most stable growth rates; consumers do not restrain
their use of tissues norPlease use Adobe,
find substitutes Chrome,
for tissues or Internet
during economic Explorer to read this file.
downturns.
Production is fairly concentrated—three producers represent roughly 60% of total NAFTA tissue capacity. Canadian tissue
production is significantly smaller than that of the United States at about 8% of NAFTA. Mexican tissue production has
Contact
grown significantly, Customer
mirroring Care
population (customercare@ihs.com)
growth if you have any questions.
and increasing per capita consumption.
Newsprint is the least expensive publication paper, composed mostly of mechanical wood pulp, thermomechanical pulp
and/or chemithermomechanical pulp plus recovered fiber from newspapers and magazines. Newsprint consumption has
been steadily declining over the last five decades as fewer North Americans read print newspapers and newspaper
publishing consolidates. Between 2005 and 2015, newsprint consumption declined at an average annual rate of 10% in the
NAFTA region. The use of electronic media and technology has lessened the demand for printed products. Email has also
impacted paper demand—as has the increasing use of tablets such as the iPad and e-book readers. The adoption of these
products and social media such as Facebook and Twitter has occurred far more rapidly than previous technological
developments.
Producing companies
The following table lists the largest pulp, paper, and paperboard manufacturers in NAFTA. These are the major customers
for all paper chemicals. The majority of these manufacturers’ sales revenues are derived from pulp, paper, and paperboard
operations; other revenue sources are typically timber and valued-added downstream products. Pulp and paper mills are
using wooden raw materials and recovered waste for producing energy (heat, electricity) and for upgrading biomass for the
production of biofuels and biochemicals, as well as for adhesives, labels, and composites. This trend has been fueled by
decreasing prices for pulp and paper and increased wood costs as well as increased competition from low-cost producers of
pulp and paper in South America and Asia.
Largest NAFTA producers of pulp, paper, and

paperboard—2016
(billions of dollars)
Companya Annual net salesb
United States
International Paper Co. 21.1
WestRockc,d 14.1
Kimberly-Clark Corp. 9.1
Graphic Packaging Holding Company 4.3
KapStone Paper and Packaging Cor- 3.1
porationd
Canada
Domtar Corporation 5.1
Cascades Inc. 3.0
Resolute Forest Products 2.7
Catalyst Paper Corporatione 1.5
Canfor Pulp Products Inc. 0.8
Mexico
Bio Pappel, S.A.B. de C.V. 1.2
a. Publicly traded companies only. Georgia-Pacific is a large producer of pulp, paper, and paperboard
but revenues have not been publicly reported since 2006 when Georgia-Pacific became a privately held
company of Koch Industries. In 2003–04, Georgia-Pacific published revenues of $20 billion.
b. Global revenues.
c. Formed when RockTenn merged with MeadWestvaco in the second quarter of 2015.
d. WestRock will acquire KapStone Paper and Packaging Corp. The deal es expected to close by 30
September 2018.
e. Catalysts Paper became a private company in January 2017.
Source: Company websites and financial reports. © 2018 IHS Markit


Major pulp and paper industry issues and trends
Some of the major trends impacting the NAFTA pulp and paper industry are highlighted below. (See the Specialty paper
chemical products section of this report for more details on how individual specialty chemical products have been
affected by the pulp and paper industry’s
Please use Adobe,trends and issues.)
Chrome, or Internet Explorer to read this file.
• The paper industry is growing slower than the region’s GDP because of the replacement of paper by digital processes for
communication. This is a fundamental change in the business and prospects for paper will not improve. In contrast,
paper for packaging and tissue are growing and will track consumer spending.
• Recovered paper is starting to reach a maximum collection ceiling in the United States and Canada. At the same time,
the amount of paper available for recycling is shrinking because the production of printing paper—the major source of
recycled paper—is declining as a result of lower consumption. In addition, recovered paper is beginning to be used as an
energy source. All these factors shrink the supply of paper available for recycling.
• Environmental expenditures—compliance, penalties for violations, litigation, and administration—are significant

factors affecting capital spending. Currently, US pulp and paper companies are dealing with environmental regulations
concerning air emission requirements from industrial boilers, commonly referred to as Boiler maximum achievable
control technology (MACT) as well as greenhouse gases. Environmental expenditures are a major expense for the paper
and board industry.
• Mergers and consolidation will continue to shape the industry, not just at the pulp and paper mill level, but also in the
downstream converting plants. This will lead to fewer but bigger, vertically integrated paper and pulp companies with a
preference for chemical suppliers that can deliver not just a specific chemical, but a range of product solutions.
Central and South America

Central and South America produced an estimated 16.3 million metric tons of paper and paperboard in 2016. The region is
also a major producer and supplier of wood pulp to the world. Brazil is the largest source of eucalyptus pulp in the world. In
2016, the region produced 27 million metric tons of wood pulp, 73% of which was exported.
The region is a net exporter of pulp and a net importer of paper products. In 2016, this region produced 16% of the 171
million metric tons of pulp produced globally, but only consumed 5% of it. Of total global paper and paperboard
production and consumption, the region produced and consumed 5%. Brazil was the world’s second-largest pulp producer
in 2016, next only to the United States. It was the eighth-largest paper and paperboard producer, ranked between Canada
and Finland.
The largest producers of pulp and paper in Central and South America are Brazil, Chile, Argentina, and Colombia. In 2016
Brazil accounted for 67% of pulp and paper production in the region, while Argentina, Chile, and Colombia combined
accounted for about 33%. Consequently, these countries drive the overall pattern and growth of paper chemicals in the
region.
The following table provides historical production data on Brazil’s paper industry.
Brazilian production of paper, paperboard, and pulp

Wood Paper and Recovered
pulp paperboard paper
1990 4.4 4.7 na
2000 7.5 7.2 na
2005 10.4 8.6 3.4
2010 14.2 10.0 4.0
2015 17.4 10.4 4.6
2016 18.8 10.3 4.5
Sources: Iba (Brazilian Tree Industry); RISI Annual Review 2017 (2015 and 2016 data for Recovered paper). © 2018 IHS Markit


Central and South American consumption of paper and paperboard was estimated at 19.9 million metric tons in 2016.
Packaging accounted for almost 60% of consumption.
Central and South American consumption of paper and paperboard

(percent)
60%
50%
40%
30%
20%
10%
0%
Packaging Printing and writing Tissue Newsprint Other
2013 2016
Virtually every paper and pulp company that has a global outreach views South America as a strategic market to cultivate
and grow. Consequently, many of the international companies such as International Paper, WestRock, UPM, and Stora
Enso Oyj have established manufacturing and sales organizations in South America. The following table shows the major
domestic companies headquartered in the region, ranked in terms of revenue.
Major South American producers of pulp, paper, and paperboard—2016

(billions of dollars)
Company and headquarters location Annual net salesa
Empresa CMPC
Santiago, Chile 4.34
Suzano Papel e Celulose
São Paulo, Brazil 2.83
Fibria Cellulose
Klabin S.A.
Cellulosa Arauco y Constitucion S.A.
Santiago, Chile 2.04
a. Whenever possible, revenues only include those derived from the production of pulp, paper, or paperboard and exclude earnings from holdings on
lumber or other forest products.
Source: Company websites and financial statements. © 2018 IHS Markit
Europe
The pulp, paper, and paperboard industry
Industry characteristics
In 2016, the European pulp, paper, and board manufacturing industry had an annual turnover of about €81 billion and
employed more than 177,000 people. The trends toward increased industry concentration and higher capacity units can be
seen in the table below.


European pulp and paper industry statistics—2016a
Change
2014–16
Unit 2010 2011 2012 2013 2014 2015 2016 (percent)
Companies number of 675 659 640 636 628 636 623 -2.0
Pulp mills number of 172 171 170 163 158 155 153 -6.1
Paper mills number of 820 812 789 778 761 763 750 -3.6
Paper machines number of 1,393 1,364 1,331 1,307 1,283 1,288 1,264 -3.3
Capacity, pulp Contactthousands
Customerof metricCare (customercare@ihs.com)
44,189 43,128 42,548 if41,480 40,960
you have 40,805 41,693
any questions. 0.5
tons
Capacity, paper thousands of metric 103,714 103,458 101,814 101,181 101,026 99,832 100,374 -0.8
tons
Capacity/mill, pulp thousands of metric 54 53 54 53 54 53 56 4.3
tons
Capacity/mill, paper thousands of metric 74 76 76 77 79 78 79 2.6
tons
a. Consisting of Confederation of European Paper Industries (CEPI) members: Austria, Belgium, Czech Republic, Finland, France, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia,
Spain, Sweden, and the United Kingdom.
Source: CEPI Statistics.
After some dramatic reductions in the number of mills and paper machines during 2010–13, the industry is now in a more
stable phase.
In the European Union, this industry is a vital part of an even more important cluster—the forest-based and related
industries, which represents about 10% of all industry in EU member states. Forestry alone provides employment for
about half a million people, with an average annual turnover of more than €38 billion. Forest-based industries include
mechanical woodworking; pulp, paper, and board manufacturers; coating specialists; paper and board converting;
merchants; and printing and publishing. Related industries include furniture manufacture, machinery and equipment
manufacture, and paper chemicals. Special issues and trends characterize this industry as follows:
• Growing international trade and investment.
• Increasing costs, size, speed, and grade of automation of production units.
• Cyclical movements in investment, demand, prices, and inventory.
• Need for high operating rates to achieve satisfactory long-term profitability.
• Mergers and acquisitions occur depending on the general market situation as well as the strategy changes of market
players.
• Increasing exposure to environmental complaints.
The pulp, paper, and board industry is a cyclical business in which the production swings in any one year are much greater
than those of the economic cycle as a whole. This cyclical nature is caused by a number of factors, such as:
• Business cycles in consuming industries as well as new media and communication devices that replace traditional uses
of paper products (e.g., smart phones, e-books, email, advertising via electronic media).
• Changes in inventory levels in the long distribution chain from the mill to the final consumer. In the middle of this
chain are a number of market participants, such as importers and exporters, which are outside the control of the paper
producers and whose stocks are governed by factors such as expectations of growth in the market, availability of
products from regions outside Europe, and exchange and interest rates.
The future for printing paper producers is further complicated by competition from digital devices. Consumers spend
more time with social media and the internet than with print. This has led to a new piece in the advertising expenditure
pie; print advertising page revenue is decreasing while more money is spent on internet advertising.


Increasing e-commerce (Amazon, eBay, Zalando etc.) triggers a much higher consumption of cardboard for packaging.
The European paper and board industry has become international not only because of extensive intra-European trade, but
also because of an increased emphasis on exporting outside Europe to nontraditional markets such as the United States,
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Asia, and Central and South use Adobe,
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Internationalization in Internet Explorer
Europe involves bothto
theread
paperthis file.and the paper
supply
consuming industries. For example, Germany is the biggest producer and consumer of paper and board in Europe. It is also
a major importer and exporter of these products, although its production would be adequate to cover the demands of its
market. However, it depends on imports of pulp to cover regional needs—a structural weakness that makes the industry
dependent on Contact Customer
extraregional factors. Care (customercare@ihs.com) if you have any questions.
Because of the growth of the market and the greater international trade, European paper producers are finding it
increasingly difficult to supply all segments of the market in adequate economic quantities. As a result, there has been a
trend toward greater segmentation and specialization by producers. For example, the large Scandinavian mills supply kraft
pulp, newsprint paper, and other standard, large-volume products, while smaller mills such as those in Germany provide
high-quality special paper types but depend on imports of lower-value-added basic materials such as chemical pulp.
Pulp and paper are produced in most European countries, although the relative importance of the industry varies from
country to country. In 2016, European pulp production was estimated by the Confederation of European Paper Industries
(CEPI) at 37 million metric tons. The key pulp-producing countries are Finland and Sweden, with a share of about 30%
each. Portugal, Germany, Spain, and France follow, with shares in the range of 5–7% each. In 2016, pulp consumption was
estimated by CEPI at 41.5 million metric tons. Finland, Sweden, and Germany together consume about 48% of the total
pulp used in Europe. According to CEPI, 2016 paper and board production was estimated at 91 million metric tons. The
largest paper producing countries in Europe are Germany (25%), Finland (11%), Sweden (11%), Italy (10%), and France
(9%).
Three separate regions can be identified in the European paper industry: Northern Europe (Scandinavia), and Central and
Southern Europe. Each has its own characteristics, as discussed below.
Scandinavia has been a traditional exporter of pulp and paper, with a long tradition in the industry based on the large
forests of the region. The Scandinavian paper industry is characterized by large-scale plants producing more than 300,000
metric tons of product per year. There is substantial integration within companies. In many cases, the producers own the
forests, the pulping facilities, and the paper production facilities, although not necessarily at the same site. Scandinavian
producers traditionally specialized in high-volume, low-value papers, and carton boards, with very little production of
specialized papers. This has changed over time; the Nordic countries are now the global market leaders for liquid
packaging board (LPB), which is a high-price product. Some of the leading companies also produce refined paper products
through investments in their own production facilities and/or acquisitions of paper-producing companies in continental
Europe. Because of the low populations in Scandinavian countries, relatively little recycled paper is available or has been
used. Scandinavia is a large net exporter of paper and pulp products to other Western European markets as well as to
overseas markets.
A number of countries in Western Europe (Germany, France, Austria, and the United Kingdom) have paper industries with
similar characteristics. The average plant in this region is smaller than in Scandinavia and produces about 50,000–100,000
metric tons of product per year. The average plant size is increasing, especially in the area of papers like uncoated printing
papers, sanitary and household papers, and wrapping papers. This region is also characterized by very high and still-
growing use of recycled paper, and by the fact that it must import substantial amounts of pulp. Germany is an exception.
It is both the largest producer and the largest consumer of paper in Europe. The country has more than 80 paper mills with
an annual capacity in excess of 200,000 metric tons. It also produces a wider range of products than the Scandinavian
producers, and is strong in top-quality printing papers as well as in a number of specialties. Germany is highly dependent
on imports of pulp and has the highest volume of recycled paper use. The French paper industry relies strongly on its own
production of chemical pulp and on older and smaller plants for its paper production. Some of these plants are not geared
toward specialized products, so there is room for restructuring in the French paper industry in its present form.
The paper industries in Italy, Spain, and Portugal represent most of the southern European output. With a total of 156
paper and board mills, Italy accounts for the highest number of plants in Europe. Spain and Portugal are home to 75 and 25


paper and board sites, respectively. In total, the European paper and board industry runs about 780 mills. Italy was the
fourth-largest paper and board producer in Europe in 2016 after Germany, Finland, and Sweden, accounting for 9.8% of
total European turnover. The pulp, paper, and board mills in Spain and Portugal accounted for 6.8% and 2.5%, respectively,
of total European turnover. The paper sector is generally characterized by somewhat smaller paper machines and smaller
Please
corporate holdings—several use
still runAdobe,
as familyChrome, or Internet
concerns. That Explorer
is changing to consolidation
as industry read this file.
takes hold and
companies pursue efficiency gains with larger production facilities.
The competitiveness of European production has eroded under the pressure of high costs in certain domestic markets.
Contact Customer
Scandinavian producers, for example,Care (customercare@ihs.com)
pay high if you
costs for labor, which forces them to have anyand
rationalize questions.
cut labor costs.
Moreover, unfavorable currency shifts have exerted additional pressure on the cost-price structures in Europe relative to
other regions. In addition, production in some lower-cost countries such as Chile and Brazil has impacted markets
traditionally supplied by Scandinavian producers.
The European pulp, paper, and board industry has made substantial improvements in production efficiency. Sustainable
development has become an important principle: paper recycling has increased, emissions have fallen, and raw materials
are utilized more efficiently. The industry has a strong position in technology and expertise. Special strengths include a
functioning fiber loop with a high utilization of recovered paper and the size and know-how of the chemical industry,
providing high-tech solutions for specialty and high-quality grades and cost-effective production. Weaknesses include
high input costs such as raw materials, labor, and energy. Threats and challenges to the industry include competition from
countries with low production costs, and Europe’s environmental and energy taxes, which are higher than those of other
countries. Europe is a net importer of pulp, mainly from Brazil, and a net exporter of paper products, mainly to Asia.
Consolidation, globalization, and specialization

Consolidation, globalization, and specialization are the main issues faced by the pulp and paper industry as it tries to
reduce the volatility of its business cycle. For decades, the industry has struggled with its cyclical nature because its profits
rise and fall unpredictably. Investors feel equally unsettled by the uncertainty of the returns. As a result, the industry has
been given a low rating by stock markets. There are obvious reasons for its cyclical nature: the industry operates capital-
intensive, continuous-process plants, and many of its products are commodities that are traded around the world, largely
on price.
The Central and South European paper industry has been plagued by rising costs for fiber wood, pulp, electricity, and fuel
for many years. Because of cost and price pressures, overcapacity, slumping domestic demand, strong competition from
low-cost, foreign producers, and unfavorable exchange rates, the European pulp and paper industry has been cutting
production capacity. In 2012 alone, six European paper mills cut or closed nearly 1.5 million metric tons of capacity. In
2014–16, only 654,000 tons of capacity were lost. In 2017, the paper industry reached 2007 profitability levels and is
optimistic about the coming years.
Because of the lower demand for printing paper products, paper mills are continuing to implement restructuring
programs, curtail production, and close paper machines to improve cost efficiencies, avoid overproduction, and support
prices. A popular action is the conversion of paper mills to board production to supply the growing demand for packaging.
Consolidation and globalization are being achieved through a wave of mergers and acquisitions that has swept the
industry. This struggle for consolidation has been particularly pronounced in Europe over the last 20 years. The leading
suppliers of pulp, paper, and board are the Finnish and Swedish conglomerates SCA, Stora Enso, Mondi, and UPM. The
consolidation process will continue, involving paper mills around the world, including Eastern Europe. The structure of
the European paper industry also accounts for a large number of small and medium-sized enterprises, often very
successful and sometimes locally based, and with a local or regional market. The top European pulp, paper, and paperboard
manufacturers are listed below. The majority of these manufacturers’ sales revenues are derived from pulp, paper, and
paperboard operations; other revenue sources are typically timber and valued-added downstream products.


Leading EMEA producers of pulp, paper, and paperboard—2016
Sales
Billions
Country of of Domestic
Company headquarters currency dollarsa Remarks
Svenska Cellulosa Ak- Sweden 117.3 billion 14 Swedish SCA offers personal care
tiebolaget (SCA)b kronor products, tissue, packaging, publica-
tion papers, and solid-wood products
in more than 90 countries.
Stora Enso Oyj FinlandCustomer
Contact 9.8 Care
billion 11.1 Stora Enso is a Finnish-Swedish if
(customercare@ihs.com) pulp
you have any questions.
euros and paper manufacturer. It is a global
paper, packaging, and forest products
company producing newsprint and
book paper, magazine paper, fine
paper, consumer board, industrial
packaging, and wood products. Pulp
activities are now promoted as biore-
fineries.
Mondi Group plc United Kingdom, 6.6 billion 7.5 Mondi is a leading paper and packag-
Austria, South euros ing manufacturer with key operations
Africa and interests in Western and Eastern
Europe and South Africa. The split be-
tween paper and packaging is about
50:50.
UPMc Finland 8.2 billion 9.3 UPM is a Finnish pulp, paper, and tim-
euros ber manufacturer. The company was
formed by the merger of Kymmene
Corporation and Repola Ltd. and its
subsidiary United Paper Mills Ltd. in
1996.
Sappi South Africa 5.1 billion dol- 5.1 Sappi is a producer of coated fine
lars paper and chemical cellulose. While its
headquarters are located in South
Africa, Sappi Fine Paper has manufac-
turing and marketing facilities in North
America, Europe, southern Africa, and
Asia.
a. Based on an exchange rate of $1.13 per euro, $0.117 per krona (Average for 2017)
b. Divested the hygiene business with sales of about €10 billion in June 2017.
c. Includes only the pulp and paper business.
Source: Company annual reports. © 2018 IHS Markit
Mergers, permanent mill closures, and acquisitions are likely to continue for some years to come. It is estimated that there
still is an overcapacity of about 0.5 million metric tons of wood-free coated paper in Europe. Specialization is ongoing and
will mean the selling of noncore activities to focus on strengths. The rationale is to benefit from large market shares,
economies of scale, and high plant utilization. Giants of the industry—including International Paper, SCA, UPM, Sappi,
and Stora Enso—are divesting activities they consider noncore.
Examples include the following:
• Divestment of UPM’s Schwedt, Germany plant to LEIPA. In 2017–18, LEIPA converted its paper machine PM11 from
newsprint to board (now called PM5). This removed 280,000 tons of newsprint paper and will add 450,000 tons of
board.
• Aylesford Newsprint (United Kingdom) went bankrupt in March 2015, removing 400,000 tons of newsprint paper from
the market.
• UPM announced the shutdown of two paper machines in 2015–17. The machines, locations, and annual capacities are
listed below.
• Augsburg, Germany: PM2, 113,000 metric tons SC-A.
• Steyrermühl, Austria: PM3, 192,000 metric tons SC-B.


• Stora Enso shut down its PM8 paper machine at its Kvarnsveden, Sweden mill with 100,000 metric tons of capacity.
• Mondi shut down its Lohja, Finland mill in June 2015, removing about 75,000 metric tons of specialty paper capacity
from the market.
Individual paper mills were once capable of producing a range of different paper and packaging grades, but the trend now
is for each mill to be focused strictly on a single product. A number of mills, deemed undesirable by the large companies,
were successfully acquired by small or mid-sized companies.
New investments in 2014–17 were directed to board or tissue production.
Pulp and paper supply/demand

The European paper mills belonging to the Confederation of European Paper Industries (CEPI), which includes 17 EU
countries plus Norway, produced around 91 million metric tons of paper and board in 2016. Paper production peaked at
103 million metric tons in 2007 and has since decreased.
In general, the European paper industry must operate at over 90% of capacity in order to be profitable. The average
operating rate for European paper mills was 90.6% in 2016.
Each additional percentage of capacity utilization represents a substantial additional profit to producers. When capacity
utilization drops below 90%, paper producers must rely on a number of factors to survive, including access to financing
through mergers or buyouts, better marketing, and improved technology.
The consumption structure of the main raw materials for paper and board production in Europe in 2016 is shown in the
following graphic.


CEPI pulp and paper industry in 2016
Source: Confederation of European Paper Industries (CEPI) © 2018 IHS Markit
With a trade balance of 3.5 million metric tons in 2016, the CEPI region is a net exporter of paper and board grades. In
2016, the region exported 19.1 million metric tons and simultaneously imported 5.6 million metric tons. The largest
export destinations were other non-CEPI Europe with 38%, Asia with 26%, and North and South America with about 10%
each. Imports came primarily from Other Europe (48%), North America (30%), Asia (12%), and Latin America (6%).
Pulp
Pulp, the principal raw material for the paper industry, is processed into different grades for papermaking.
• Mechanical pulp, which includes semichemical and thermomechanical grades.
• Chemical pulp, which includes different raw materials (hardwood and softwood) and different chemical processes
(sulfate and sulfite).
Some producers have pulp production coupled to paper manufacturing (integrated pulp); others have to purchase their
pulp requirements on the market (market pulp). Market pulp accounts for approximately one-third of total pulp
consumption in Europe. The bulk of mechanical pulp produced is integrated into papermaking at the mill and is thus not


available for sale. Chemical pulp is offered for sale primarily on the open market. In addition, recycled fiber from
wastepaper recovery has gained an important share as a paper raw material in Europe.
Production and consumption of pulp for papermaking in Europe in 2016 increased by 0.6% annually compared with 2013.
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importer of market pulp in 2016,
with 8.1 million metric tons, as shown in the table below. While the consumption of wood pulp was about 41.5 million
metric tons in 2016, Europe’s own production was only about 37.3 million metric tons.
European supply/demand for wood pulp

(thousands of metric tons)
Average annual
growth rate,
2014–16
2005 2008 2011 2014 2016 (percent)
Productiona 41,577 41,852 38,805 36,545 37,232 0.9
Importsb 8,094 7,845 7,996 7,745 8,109 2.3
Exportsb 1,853 2,076 3,014 3,239 3,816 8.5
Consumption 48,916 48,542 44,531 41,051 41,525 0.6
a. Includes pulp production for cellulose derivatives like cellulose ethers and esters.
a. Deliveries to or from outside Confederation of European Paper Industries (CEPI).
Source: CEPI Annual Statistics—2005–16, Confederation of European Paper Industries (CEPI). © 2018 IHS Markit
In 2016, wood pulp production by grade was dominated by sulfate pulp (68%) and mechanical and semichemical wood
pulp (27%). From 2014 to 2016, total wood pulp production increased on average by about 1% annually.
European production of wood pulp

Average annual
growth rate,
2014–16
2005 2008 2011 2014 2016 (percent)
Chemical pulp
Sulfate pulp 24,750 25,285 24,617 24,568 24,993 0.9
Sulfite pulp 2,308 2,199 2,147 1,696 1,820 3.6
Total chemical pulp 27,058 27,484 26,764 26,264 26,813 1.0
Mechanical and semimechanical pulp 14,050 13,464 11,783 10,109 10,145 0.2
Total wood pulpa 41,108 40,948 38,547 36,373 36,958 0.8%
a. Excludes “other” pulp production for cellulose derivatives like cellulose ethers, esters.
The marketing of pulp is undergoing changes since suppliers and users are becoming larger (through mergers), as well as
more international and integrated. Users require shorter delivery times and high reliability in their pulp purchases in order
to keep their raw material inventories at low levels and to cut costs. Technical requirements for market pulp are also
changing.
The greater use of mineral fillers and coating pigments, chemical additives, and wastepaper are negatively affecting the
demand for market pulp at a time when the supply of pulp is increasing as a result of the growing acceptance of eucalyptus
as an alternative to traditional softwood pulp. The rapid growth of eucalyptus trees makes them an attractive alternative
source of pulp, and eucalyptus production (mainly in Brazil and Portugal) has increased rapidly in the last few years.
The main factors in the European pulp industry that had a strong impact on the consumption of pulp and paper chemicals
were the increased use of recovered paper and the switch to ecologically acceptable bleaching processes for pulp.
Pulp prices currently account for some 70–80% of the costs of producing uncoated, low-grade paper, which makes it
difficult for paper producers without an in-house pulp supply to be profitable. Integrated producers can lose money on
their pulp while still making a profit on paper, and vice versa. Wood prices for birch and pine rose from €12–13/m3 during


2004 to mid-2006 to €16–18/m3 toward the third quarter of 2008, before trending downward to the €13–14/m3range. The
price of wood has increased rapidly since 2010 because of the rapid growth of government-subsidized wood-fired power
stations. In 2014, wood prices were in the €30–35/m3 range, and a price range of €40–45/m3 was observed.in 2016. Wood
demand is also growing rapidly in biofuels, such as pellets.
Nonfibrous materials
Nonfibrous materials include pigments used as fillers and in paper coatings, as well as binders and other commodity and
specialty chemicals. The table below shows pigment consumption for selected years as well as the average annual growth
rates for 2014–16.
European consumption of nonfibrous materials in the paper industry

Average annual
growth rate,
2014–16
2005 2008 2011 2014 2016 (percent)
Calcium carbonate (coating and filler) 7,020 8,387 8,952 9,040 8,150 -5.1
Clays (coating and filler) 4,270 3,897 3,580 3,255 2,989 -4.2
Starches 1,535 1,821 1,808 1,761 1,528 -6.9
Nonfibrous materialsa 2,380 2,580 1,551 1,395 1,560 5.7
Total 15,205 16,685 15,891 15,451 14,227 -4.0%
a. Includes titanium dioxide, extenders, and other mineral pigments.
Consumption of carbonate pigments has followed the rate of graphic paper production. Drivers for pigment consumption
in general include cost reduction through replacement of expensive fibers, basis weight reduction to prevent postal rate
increases, and improved optical properties such as brightness and opacity.
Compared with the most commonly used fillers, precipitated calcium carbonate (PCC) continues to gain market share—
mainly in Sweden and Finland where it is used in fine papers, coated ink-jet papers, and cigarette paper.
The use of minerals as fillers and coating pigments (e.g., PCC, ground calcium carbonate in alkaline paper, and talc) is at
high levels in Europe and accounts on average for 25% of paper weight. This level is higher than the North American
average.
The market for high-quality coated papers has created an associated demand for specialty fillers/coatings and coating
formulation aids. The types of fillers and coatings used in these quality papers depend on the printability requirements—
for example, the degree of glossiness and contrast, and the ability to bind dyes and fix printing inks.
Products used in coating formulations for the rapidly expanding high-quality coated papers market have exhibited
dynamic growth. This applies to coating binders, which are mainly styrene-butadiene dispersions, acrylates, starches, and
other dispersions like polyvinyl acetate, as well as to specialties like polyvinyl alcohol or silicones, which are discussed
further in the Specialty paper chemical products and functions section of this report.
Recovered paper and board

The European paper industry is using recycled fibers to a high degree. Since 2005, recycled paper has replaced wood pulp
as the major raw material for paper and board production. In 2016, about 56 million metric tons of recovered paper were
collected, of which 47.7 million metric tons were used, mainly for corrugated board (73% of raw material) and for
newspaper and magazines (29% of raw material). The collection rate can vary from 35–50% in countries like France, Italy,
the United Kingdom, and Spain to 65–70% in countries like Finland, Sweden, Switzerland, and Germany.
According to CEPI statistics, the recycle rate of individual paper types varies considerably: about 80–90% for newsprint
and case materials; 40–55% for carton boards, wrapping, household, and sanitary papers; and 10% for graphic papers. There
are some paper types where recycled paper is not or cannot be used. High-quality graphic papers and many other papers


for special applications like photographic base papers, medical papers, high-security papers, filter papers, tea bag papers,
and capacitor papers have to perform to precisely specified chemical and physical properties and therefore are made up of
100% primary fibers.
Paper and board
Under the CEPI classification system, the following major paper and board grades have been identified.
Coated graphic papers. These are mechanical or wood-free grades coated on one or two sides with materials such as clay,
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sulfate, (customercare@ihs.com)
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supercalendering.
Included here are all coated printing papers, regardless of the furnish composition, filler content, coating ink, and
finishing process.
Corrugating materials. Included here are papers and paperboards used mainly as components of corrugated products.
These are made from any combination of primary and recycled lignocellulosic fibers or other fibrous vegetable materials.
They can be unbleached or bleached and can have various finishes. Included in this category are components used as facing
material, kraft, or other linerboards, and fluting or corrugating media, whatever their furnish and the manufacturing
process applied.
Newsprint. This is uncoated paper used mainly for the printing of newspapers. It is unsized (or only slightly sized),
usually contains at least 65% mechanical or thermomechanical wood pulp or other lignocellulosic fibers, and usually
weighs 40–52 grams per square meter. It may be plain or colored and is supplied in reels with supercalendered finish for
letterpress, offset, or flexographic printing.
Sanitary and household papers. These include absorbent paper, creped or uncreped, sometimes embossed. They are
made from unbleached or bleached pulps, deinked fibers, or a combination of these raw materials, in white or in a variety
of colors and in single, double, or more plies. Important properties are high wet-strength and absorbent capacity,
retention of absorbed fluids, softness, and freedom from lint or unpleasant odors. Included here are materials for
disposable tissues, facial tissues, napkins, sanitary napkins, toilet paper, toweling, wipes, and similar products.
Uncoated mechanical printing and writing papers. Known also as wood-containing or groundwood papers, these
products are suitable for printing and/or other graphic purposes. More than 10% mechanical or thermomechanical pulp is
included in the furnish. When made for specific applications, the principal end use often determines furnish, sizing,
and/or finish of the paper. Included in this class are magazine paper and bulky and lightweight publication and printing
grades (i.e., those below the basis-weight bracket for newsprint), as well as telephone directory paper.
Wood-free printing and writing papers. These are papers suitable for printing and/or other graphic purposes,
containing not more than 10% mechanical or thermomechanical pulp. They can be made from a variety of furnishes and
by using various finishing and/or marking processes (sizing, calendering, supercalendering, glossing, watermarking, etc.).
It is noteworthy that in Germany, wood-free grades must not contain more than 5% mechanical pulp or any recycled fiber.
The so-called base papers are further processed before distribution (e.g., carbonizing, photographic, self-copy, and
wallpaper base grades).
Wrapping papers. This general heading covers all of the grades used mainly for wrapping and packaging purposes. They
are made from unbleached or bleached chemical pulps, recycled fiber, or any combination of these and may be subject to
various finishing and/or marking processes. Included here are grades known as kraft, sulfate, or sulfite papers. For
instance, kraft or sulfite wrappings (regardless of basis weight and the number of plies) are used for food wrappings and
sweet or chocolate wrappings.
Other papers. Generally speaking, this heading covers all papers manufactured for industrial purposes that are distinct
from sanitary or household applications but are not exclusively or principally used in either graphic or wrapping and
packaging applications. In most European countries, this heading covers two ranges of papers that also have general trade
names. Thin papers are made for special purposes such as cigarette or condenser and capacitor papers, or for lens, stencil,
pattern, and carbonizing tissues. In the Netherlands, however, the last three grades are classified as printing and writing


papers. Special papers are made for waxing, asphalting, insulating, roofing, waterproofing, laminating, gumming,
spinning, twisting, and other particular applications or treatments. In the Netherlands, waterproofing, laminating, and
gumming base papers are treated as packaging grades.
Folding boxboard. ThisPlease use

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that provides good folding properties, scoring ability, and stiffness. It may be plain or colored throughout the mass, single-
or multi-ply, and uncoated or coated by on-machine and/or off-machine processes. Included are paperboards for folding
cartons and liquid containers, paperboards for frozen or other food products, collapsible cartons, and similar products.
Other paperboards. This general heading covers all paperboards and paper and paperboard combinations produced in mill
operations by using the furnishes, coloring, coating, and finishing processes of paperboard manufacturers, regardless of
the number of plies contained. Included are paperboards for rigid boxes, solid containers, and shipping cases; paperboard
for special purposes, such as beer mats, gaskets, matrix (automotive) panels, show, transformers, trunks, or suitcases
(index, textile, etc.); pressboards; and all paperboard not included under the last category.
The European paper industry is marked by large regional and national differences in paper consumption. The per capita
consumption of paper is strongly linked to the standard of living in each country and the per capita GDP. The low per
capita consumption levels in Eastern European countries represent a vast potential market for the Western European
paper industry. In past years, the growth in per capita consumption of paper has, on the average, paralleled, or even
exceeded, the growth in GDP. The pulp and paper industry in Europe is a large, continent-wide activity, with production of
approximately 91 million metric tons of paper and paperboard in 2016, compared with a total consumption of 77.4 million
metric tons of paper and paperboard in the same year. In the table below, the breakdown of production into product
categories based on the CEPI classifications for paper and board shows that the graphic grades category is the most
important product category, accounting for about 40–50% of total paper and board production.
European production of paper and paperboarda

Average annual
growth rate,
2014–16
2005 2008 2011 2013 2014 2016 (percent)
Graphic
Newsprint 10,972 10,586 9,715 8,156 7,594 6,549 -7.1
Uncoated wood-free 10,693 9,923 9,480 8,996 9,108 8,794 -1.7
Coated mechanical 10,438 9,757 8,894 7,439 7,050 6,285 -5.6
Coated wood-free 10,249 9,769 8,404 7,754 7,536 6,654 -6.0
Uncoated mechanical 6,679 7,477 6,423 5,833 5,634 5,627 -0.1
Total graphic 49,031 47,512 42,916 38,178 36,922 33,909 -4.2%
Packaging
Case materials 23,721 24,038 24,871 25,551 26,204 27,733 2.9
Carton board 8,018 8,250 8,334 8,625 8,546 9,049 2.9
Wrapping 3,718 3,924 3,851 3,989 4,235 4,156 -0.9
Other paper for packaging 4,275 4,083 3,766 3,664 4,267 4,733 5.3
Total packaging 39,732 40,295 40,822 41,829 43,252 45,671 2.8%
Sanitary and household 6,288 6,759 6,977 6,973 7,001 7,301 2.1
Other 4,294 4,435 4,262 4,149 3,892 4,050 2.0
Total 99,345 99,001 94,977 91,129 91,067 90,931 -0.1%
a. Includes CEPI member countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, and the United Kingdom; other countries include the Czech Republic, Hungary,
Norway, and Slovakia.
Paper production in the CEPI countries slightly decreased on average by 0.1% annually during 2014–16. CEPI member
countries produced around 91 million metric tons of paper and board in 2016.
In 2016, all graphic paper grades showed lower annual production levels compared with 2014. Overall production fell by
4.2% annually compared with 2014. Output of newsprint papers declined at 7.1% per year.


The production of packaging grades in 2016 increased by 2.8% compared with 2014.
Packaging paper is profiting from the trend of supermarkets moving away from polyethylene-bags to either paper or
degradable plastic bags. Hygienic paper manufacturers have seen an annual rise in output of 2% over 2014.
Environmental issues and trends
Impact on the industry
Some of the major needs of the European paper industry are ultimately driven by environmental or health considerations.
Examples include the following:
• A stringent requirement for the paper industry is the reduction of freshwater use and of discharges. As papermaking
water management has been optimized by intensive recycling of the process water, problems of contamination with
interfering substances or biological organisms have increased. Control aids for the interfering substances and new
retention systems (both of which improve the paper quality and also help reduce biological contamination) have gained
importance.
• The need to use increasing amounts of recycled paper has been driving the consumption of deinking agents and the
development of new deinking systems in order to enhance the quality of the deinked paper, even when wastepaper
printed with water-based flexographic inks is used as a starting material.
• Chlorine bleaching has not been used in Europe since the end of the 1990s. Alternatives to chlorine have completely
taken over, including chlorine dioxide (dominates the industry, produced on-site from sodium chlorate), hydrogen
peroxide, sodium peroxide, and oxygen. A technology that is gaining wide acceptance is the use of bioenzymatic
bleaching aids, which were introduced in Europe at the beginning of the 1990s.
• The paper industry has a major need for effective wet-strength additives that do not release AOX or formaldehyde. Some
wet-strength additives used today (e.g., urea-formaldehyde resins and epichlorohydrin-based resins) do release such
chemicals, but within legally acceptable limits.
Issues within the industry

Recent years have been marked by ecological considerations. Environmental protection organizations, paper mills,
cellulose manufacturers, specialist associations, publishing houses, and politicians have made themselves heard.
The Association of German Magazine Publishers in conjunction with unionized manufacturers of paper for newspapers
and magazines, as well as some European manufacturers, have agreed to process only ecologically produced paper. Most
publishing houses will prioritize printing paper produced from cellulose containing the lowest amount of organic chlorine
compounds. There was also an agreement to gather wood as a raw material solely in such a way that overexploitation
would be stopped and the diversity of types assured. In addition, wood should be consumed only from forests that can be
managed quantitatively and qualitatively on a sustained basis.
Industry efforts to publicly demonstrate environmental awareness and implement these actions have been considerable
and expensive. Advanced processes in boiling and in bleaching cellulose have allowed the process water to be recycled, the
wastewater to be minimized, and the emission of pollutants to be largely eliminated. The vision is to create an ecologically
balanced factory, in which the entire manufacturing process—from the processing of the raw material wood to the
finished product—takes place in a closed cycle. In such a factory, all residual products would either be recycled or burned
to produce energy so that energy efficiency is achieved. Modern cellulose factories already meet their entire energy needs
today and frequently supply public networks as well. There is a trend to make better use of sidestreams like lignin and
produce higher-added value products. Such units are often labelled as “biorefineries.”


In this setting, a peculiar phenomenon has arisen: certification. German magazine publishers do not just want to
safeguard the environmentally friendly manufacture of paper with a certification system—whole forests are to be
certified as well.
The German government’s Please use Adobe,

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policy has beenor InternettheExplorer
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ofread this file.
the circular economy for some years
now. The objective is a method of consumption and production that preserves resources and is characterized by waste
avoidance and the use of secondary raw materials. The recycling concept has been practiced for a long time in the
manufacturing and processing of paper, carton, and cardboard. The utilization of wastepaper in paper, carton, and
Contact
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wastepaper. For hygiene
paper there is a clear trend to use virgin pulp as the utilization rate of recycled material has constantly dropped since the
peak of 74% in 2000. The collection of newspapers, magazines, carton, and cardboard represents an important
contribution to our environment, even if the recycling has its limits. Paper fibers can be recycled only four to six times,
and 10–20% primary fibers are usually added to all recycled papers in order to provide the necessary wet and dry strength
for the papermaking process.
Several countries are making strides in replanting and maintaining their forests. Forests can provide an entirely
renewable source of fiber for the pulp and paper industry. But history is full of examples of poor forest management, as
growing populations use seemingly endless acres of forests for shelter and fuel.
The forest industry is aware of the environmental issues, and sustainable forest management has become an important
development. But the issue is increasingly controversial as the industry is divided over different standards and
certification systems. And there is the matter of cost.
With time the companies began to realize that there was a marketing advantage in describing their products as
“environmentally friendly.” In 1993, a group of environmentalists, indigenous peoples, and forest owners formed the
Forest Stewardship Council (FSC) in an attempt to harmonize the variety of forest production certification programs
around the world. In Sweden, for example, a number of leading forest companies, such as AssiDomän and SCA, agreed to a
national standard under FSC guidelines and are beginning to have their forests certified.
Sustainability
New legislation on forests and environmental protection has come into force in various countries in northern Europe that
prioritizes the ecological and social sustainability of forests alongside the sustainability of commercial utilization. One of
the central aims of the environmental legislation is to preserve the natural biodiversity. This also means changes in forest
practice; paper mills do not accept wood from protected areas or from any other areas designated by the forest or
environmental authorities as being of special ecological importance. Most major paper mills are committed to the
principles of sustainable development and have an environmental management system in place. Forest certification is a
way of verifying wood sources and ensuring that forests are managed in line with the principles of sustainable
development.
Paper recovery
The Landfill Directive (99/31/EC), the Incineration of Waste Directive (2000/76/EC), and product-related directives like
the Packaging and Packaging Waste Directive (94/62/EC) are examples of legislation in the field of waste management
that has had an influence on the recovery and recycling of waste.
Since 1990, the reduction of packaging materials has become increasingly important in Germany because of the
introduction of the “Verpackungsverordnung” (a national packaging waste regulation). Under this law, distributors are
obliged to recycle the packaging from the goods sold. This forces the pulp and paper industry to increase wastepaper
recycling to even higher levels and to develop acceptable disposal, collection, and classification methods. Paper and board
producers and converters would need to use materials and to apply methods that do not hinder subsequent recycling. In
the case of strict applications of this recommendation, the consequences would be restrictive for the use of some chemical
additives. Fibers, fillers, and chemicals should not interfere with postconsumer recycling. Use of chlorine-treated fibers
and fluorescent whitening agents, as well as of printing inks containing heavy metals, would have to be avoided. It would


also provide economic justification for recycling and deinking of waste papers that, until now, could not be profitably
reused (e.g., household wastepaper and papers printed with flexographic printing inks).
Product process emissionsPlease use Adobe, Chrome, or Internet Explorer to read this file.
The paper production process has been highly regulated for many years through directives addressing air pollution, water
effluents, chemicals, and other issues. The Integrated Pollution Prevention and Control Directive (IPPC) to regulate
production operations was adopted in 1996 and covers all pulping and papermaking operations above 20 metric tons of
paper per day—some 98% of the industry. Directive 2008/1/EC of 15 January 2008 replaces Council Directive 96/61/EC of
September 1996 Contact Customer
on the same Care (customercare@ihs.com)
subject matter. if you have
The IPPC regime requires that operators any questions.
of installations take preventive
measures against pollution, recover and safely dispose of waste, use energy efficiently, prevent accidents, and return the
site to a satisfactory state when the installation closes.
Direct food contact

• Paper and board grades that come into direct contact with food as packaging material are subject to special regulations.
In Germany, recommendation XXXVI of the federal risk assessment authorities (German Federal Institute for Risk
Assessment [Bundesamt für Risikobewertung (BfR)]) stipulates that no migration of health-hazardous substances may
occur from the packaging material to the food (the same regulation applies to toys made of paper or board). A special
tripartite commission, which includes BfR, federal technical officers, and representatives of the industry, supervises
new chemical additives prior to introduction and scrutinizes their potential effects on human health. Other consumer
goods made of paper, like napkins, toilet papers, and paper towels, have to comply with the specific regulation for food
and consumer goods, which prescribes that the goods (and additives used for production) must be completely harmless
toxicologically. For example, dyed tissue papers must not bleed out (lose dye in solution) when exposed to water,
alcohol, or other liquids commonly used in households. Compliance implies the need for coupled systems of dyes and
fixing agents.
• In 2004, the Framework Regulation EC 1935/2004 on materials and articles intended for food contact was published.
This framework regulation states that food contact materials such as adhesives, paper and board, printing inks, or
varnishes and coatings shall not transfer their components into the food in quantities that could endanger human
health, change the composition of the food in an unacceptable way or deteriorate the taste and odor of foodstuffs. The
regulation entered into force on 3 December 2004, replacing Framework Directive 89/109/EEC and Directive
80/590/EEC. Also, after 26 October 2007 food-contact materials and articles had to be traceable throughout the
production chain.
Technology trends
Technical progress and tougher competition have made newer paper production plants increasingly larger, faster, and
more efficient. Accordingly, papermaking has become more capital-intensive. The technical characteristics of a modern
paper machine in Europe provide an interesting example.
Characteristics of a modern paper machine

Production speed 90–100 kilometers per hour
Web width 8–10 meters
Production output 300,000–500,000 metric tons per year
Water consumption 3 million cubic meters per year
Steel weight 5,000 metric tons
Investment 250–400 million
Operations staff 150 without external workers
The construction of a modern plant for making paper is therefore a major project. An investment of this magnitude must
be carefully planned, and a quick approach to high capacity utilization is a key requirement to ensure profitability in a new
plant. Since the capacity of modern paper machines can exceed the consumption of individual national markets by far, it
becomes necessary to supply several markets in order to reach a reasonable short-term capacity utilization rate. Therefore,
the competition has become progressively more international.


The nature of competition in the paper industry is changing, affecting in different ways both large paper mills for mass
paper products and smaller, specialized producers for high-tech products like security, translucent, or high-quality
printing papers.
Producers of commodity Please use Adobe,

grades—like Chrome,
newsprint or coatedor Internet
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papers—are to readfrom
suffering thisshrinking
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to increased use of electronic access to information such as news or product catalogues.
Since products are widely standardized, competition is based on price. The key for successful competition is, therefore,
cost advantage,Contact
and the main efforts of
Customer successful
Care competitors are concentrated
(customercare@ihs.com) on optimizing
if you have anythe cost of raw materials,
questions.
energy, transportation, and labor.
Smaller paper producers are typically successful when they remain in market niches—either geographically within a
localized business, or by specializing in certain paper grades. While suffering the impact of environmental pressures like
the large producers, they continue to succeed by operating on a small scale, often with a broad range of products for
special applications.
Specialty paper chemicals often differentiate paper products. Examples are watermarked and security papers, release
papers for labels, insulating papers for electrical applications, or photographic papers.
Chemical specialties also reduce processing costs. Good examples are new retention and drainage aids, which, through
better dewatering, allow significant reductions of energy costs for subsequent drying. Labor costs may be cut by using
more efficient control aids for interfering substances, preventing them from depositing on felts and wires in the paper
machines and minimizing the need for labor-intensive cleaning operations. Raw material costs are being cut either by
decreasing paper grammage, by using substitutes for wood-based fibers (e.g., using cheaper recycled fibers from
wastepaper), or by reducing the quantity of fibers used (e.g., increasing the levels of low-priced fillers such as ground
calcium carbonate). Cutting raw material costs without losses in paper quality and properties is possible only by using
chemical additives or process aids. Specialty chemicals confer desired qualities to special paper grades—for instance, wet-
strength resins for security papers, barrier, and antiadhesive coatings for release papers or dry-strength additives for
photographic papers.
The most significant technological changes in the European paper industry are evident in new or rebuilt machines,
different grades of papers, higher levels of automated process control systems, and more sophisticated, tailor-made raw
materials.
Machines have been increasing in size, speed, and sophistication. New mechanical designs help to overcome problems
that before could be solved only by the addition of chemical aids. Examples are fluoropolymer-coated monofilament wires
that do not become obstructed and that after long periods of use can be cleaned easily with high-pressure water. (The
older wires had to be cleaned in a time-consuming operation with solvents or water-based cleaners.)
New paper grades are being introduced such as supercalendered papers for offset printing, lightweight papers, double- and
triple-coated papers containing wood-free and mechanical pulp, and an increasing number of intermediate grades that do
not fit into the traditional definition of mechanical/wood-free or uncoated/coated paper.
Increased use of computerized process control systems and online quality control systems helps reduce labor and
materials costs. An example of this is the continuous online measurement of the zeta potential, recognized as a key
parameter in the wet end of the papermaking process. The continuous monitoring of this process parameter allows a fine-
tuned dosing of wet-end additives. As a result, paper quality is more even, and consumption of chemical additives has
declined because of the precise dosing. In addition, this trend helps the paper machines operate more automatically,
reducing labor costs, and downtime.
There is a strong move toward the automation of paper mills, so they can be run by a few operators in a control room. In
all, about 150–200 staff members are needed to run a large (200,000–500,000 metric tons per year) modern paper mill.
This personnel requirement does not differ substantially in smaller plants, so that productivity per employee is vastly
higher in larger plants than in smaller ones. Under the economic pressure forcing papermakers to rationalize, the main


trends to increase productivity have been to produce paper at higher speeds and on machines with wider maximum
widths. APresently, paper machines are not designed to handle a paper trim width significantly exceeding 10 meters, and
web forming and subsequent processes are limited to a production speed of 2,000–2,500 meters per minute.
Improvements in productivity also pose extraordinary challenges to the chemical systems used in the papermaking
process. Please use Adobe, Chrome, or Internet Explorer to read this file.
To guarantee high productivity, there is a trend to hand over the supervision of the mechanical system to the engineering
company that built the machine and is paid per run time of the machine. In a similar way, chemical companies have gained
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over all chemical (customercare@ihs.com)
in paper mills. if you have any questions.
The major traditional raw materials used by the papermaking industry in Europe are wood pulp, mineral fillers, and
coating pigments (especially kaolin). Environmental and economic considerations, however, are promoting increased use
of the following:
• Hardwood chemical pulp, based mainly on eucalyptus.
• New mechanical pulp grades such as thermomechanical (TMP) and chemithermomechanical (CTMP) grades.
• Recycled wastepaper, especially in boards, newsprint, and some office grades.
• Precipitated calcium carbonate as a filler and coating pigment.
Under alkaline conditions, the cellulose fibers in paper are significantly stronger and form a web that can take large
amounts of a cheap filler such as calcium carbonate, the consumption of which has increased greatly as European mills
shifted to alkaline sizing. Alkaline/neutral papermaking is also environmentally friendlier because the volume of effluents
that need to be treated can be much lower than with acid papermaking.
Alkaline papermaking has also had an effect on consumption of specialty sizes by the paper industry. Traditional acidic
rosin sizing with alum is not compatible with the alkaline calcium carbonate, so other sizing systems are used. In
particular, the reactive sizes, mainly alkyl ketene dimers (AKD), have become widely used. In Europe, alkenyl succinic
anhydride (ASA) sizing systems did penetrate the market more slowly. These sizes have a reactive end that bonds to the
cellulose and a hydrophobic end that performs a water-repellent function. They are also compatible with the calcium
carbonate used as filler. The shift to alkaline sizing has also resulted in the increased use of cationic starches, or
combinations of cationic starches and synthetic materials such as polyacrylamide, as retention aids/dry-strength
additives.
A further effect of alkaline papermaking has been the increased use of biocides, although it does not seem to be an
inherent characteristic of alkaline papermaking. Most of the mills operating under alkaline conditions are converted
acidic mills, and the residence time of the pulp being treated is greater than in the acid process, which allows more time
for organisms to grow. It is therefore conceivable that a newly designed mill could be optimized to have reduced residence
times, and could result in a reduction in the demand for biocides. For existing mills, such modifications are not likely since
the economic incentive, in cost savings for both biocides and utilities, is not justified.
The shift of raw materials for pulp from the European softwoods to eucalyptus has had a minor effect on the specialty
chemicals business. However, the current trend toward greater use of high-yield pulps, more fillers, and recycled fibers
results in higher levels of fines in the wet end, which ultimately have to be retained. This has increased the utilization of
more and more efficient retention aids.
Japan
Paper and paperboard supply/demand
The following table presents paper and paperboard production in Japan in selected years.


Japanese production of paper and paperboard
2008 2011 2014 2017
Paper
Printing and communication
Coated printing paper 6,942 5,038 4,981 4,876
Uncoated printing paper 2,528 2,062 1,897 1,796
Communication paper 1,711 1,413 1,380 1,360
Special printing paper
Contact Customer Care (customercare@ihs.com)227 321
if you have any questions. 253 233
Total printing and communication paper 11,501 8,765 8,491 8,259
Newsprint 3,680 3,211 3,134 2,779
Sanitary paper 1,805 1,780 1,766 1,789
Wrapping paper 1,010 901 905 896
Other 831 790 821 877
Total other paper 7,326 6,681 6,626 6,341
Total paper 18,828 15,446 15,118 14,599
Paperboard
Containerboard 9,219 8,811 9,096 9,682
Paperboard for paper containers 1,819 1,696 1,593 1,597
Other 762 656 672 653
Total paperboard 11,800 11,163 11,360 11,932
Total 30,627 26,609 26,478 26,532
Sources: Yearbook of Paper and Pulp Statistics, Ministry of Economy, Trade and Industry; IHS Markit for data in 2017. © 2018 IHS Markit
In 2017, 14.6 million metric tons of paper and 11.9 million metric tons of paperboard were produced in Japan. Production
of paper decreased at an average annual rate of 1.1% during 2011–14 and decreased at 0.9% annually during 2014–17.
Paperboard production, however, increased at an average annual rate of 0.6% during 2011–14 and at 1.7% annually during
2014–17, owing to increased consumption of paperboard for paper containers.
Japanese production of selected paper segments

12,000
10,000
8,000
6,000
4,000
2,000
0
2008 2011 2014 2017
Printing and writing Newsprint Containerboard Other paperboard
Sources: Yearbook of Paper and Pulp Statistics, Ministry of Economy, Trade

and Industry; IHS Markit. © 2018 IHS Markit
Historical supply/demand for paper and paperboard in Japan is summarized in the following table.


Japanese supply/demand for paper and paperboard
Per capita
Apparent consumption
Production Imports Exports consumption
Please use Adobe, Chrome, or Internet(kilograms)
Explorer to read this file.
2008 30,627 1,291 1,451 30,467 238
2009 26,268 2,077 1,084 27,261 213
2010 27,363 2,076 1,492 27,947 218
2011
Contact Customer Care (customercare@ihs.com)219
26,609 2,462 1,006
if you have any questions. 28,065
2012 25,957 2,533 830 27,660 217
2013 26,241 2,164 1,094 27,311 215
2014 26,478 2,443 1,485 27,436 216
2015 26,228 2,252 1,637 26,843 211
2016 26,275 2,091 1,838 26,528 209
2017 26,532 2,067 2,097 26,502 209
Sources: Yearbook of Paper and Pulp Statistics, Ministry of Economy, Trade and Industry (data for Production); Japan Exports and Imports, Japan Tar-
iff Association (data for Imports and Exports); IHS Markit (all other data). © 2018 IHS Markit
Japanese pulp makers derived approximately 68% of the raw material from imported wood sources in recent years;
domestic wood accounted for the remaining 32%.
Japanese consumption of wood in pulpmaking

Thousands of metric tons Percent of total
Domestic Imported Domestic Imported
wood wood Total wood wood
2008 10,056 24,198 34,254 29 71
2011 9,137 20,296 29,433 31 69
2014 9,576 19,977 29,553 32 68
2016 9,275 19,774 29,049 32 68
Source: Yearbook of Paper and Pulp Statistics, Ministry of Economy, Trade and Industry. © 2018 IHS Markit
The use of wastepaper as a raw material for papermaking accounted for a significant proportion of Japanese pulp sources
over the years, reflecting the lack of domestic wood pulp resources and the movement toward resource conservation.
Waste pulp and paper have provided 74–77% of the raw materials consumed in paper production in recent years.
Consumption in paperboard is significantly higher and averaged at least 96% in the last several years.


Japanese consumption of raw materials in papermaking
2008 2011 2014 2016
Thousands of Percent of Thousands of Percent of Thousands of Percent of Thousands of Percent of
metric tons total metric tons total metric tons total metric tons total
Paper
Pulp 1,986 21 1,944 24 1,645 21 1,582 22
Wastepaper pulp 118 1 106 1 94 1 123 2
Wastepaper 7,307 77 5,916 74 5,628 77 5,531 76
Other fiber 21 Care (customercare@ihs.com)
Contact Customer 0 21 0 22
if you have 0
any questions. 23 0
Total paper 9,432 100% 7,987 100% 7,390 100% 7,258 100%
Paperboard
Pulp 370 3 406 4 405 3 407 3
Wastepaper pulp 15 0 12 0 6 0 6 0
Wastepaper 11,705 97 11,033 96 11,158 96 11,501 96
Other fiber 10 0 10 0 9 0 8 0
Total paperboard 12,101 100% 11,461 100% 11,578 100% 11,922 100%
Paper and paperboard
Pulp 2,356 11 2,350 12 2,050 11 1,989 10
Wastepaper pulp 133 1 118 1 99 1 128 1
Wastepaper 19,013 88 16,949 87 16,786 89 17,031 89
Other fiber 31 0 31 0 31 0 31 0
Total paper and paperboard 21,533 100% 19,448 100% 18,967 100% 19,180 100%
Source: Yearbook of Paper and Pulp Statistics, Ministry of Economy, Trade and Industry. © 2018 IHS Markit
Producing companies
The leading Japanese pulp, paper, and paperboard manufacturers are listed in the following table. The majority of these
manufacturers’ sales are derived from pulp, paper, and paperboard operations; other revenue sources are typically timber
and valued-added downstream products.
Leading Japanese producers of pulp, paper, and paperboard—2017

Net salesa
Company Billions of yen Millions of dollarsb
Oji Holdings Corporation 1,440 12,834
Nippon Paper Industries Co., Ltd. 992 8,846
Rengo Co., Ltd. 545 4,862
Daio Paper Corporation 477 4,253
Hokuetsu Kishu Paper Co., Ltd. 262 2,339
Mitsubishi Paper Mills Ltd. 202 1,800
Lintec Corporation 206 1,836
Chuetsu Pulp & Paper Co., Ltd. 94 837
Tokushu Tokai Paper Co., Ltd. 78 693
Tomoegawa Co., Ltd. 32 289
a. Fiscal year ended March 2017.
b. Based on an exchange rate of ¥112 per dollar for fiscal year 2017 (ending 31 March 2017).
Source: Company annual reports. © 2018 IHS Markit
Oji Holdings and Nippon Paper Industries are the two largest producers in Japan.
Operating rates
The total Japanese paper and paperboard industry operated at an average rate of 85–90% of annual capacity in recent years.

Wastepaper recovery is an established business in Japan, especially for newspapers, corrugated paper, and magazines.
Since 2013, the recovery rate for wastepaper has increased to more than 80%, compared with 65% in 2002 and 51% in


1996. The following table shows Japanese recovery of waste paper. Almost 100% of newsprint (including advertising paper)
is recovered in Japan.
Japanese recovery of wastepaper

(percent)
Newsprint
Paper and (including
paperboard advertising paper)
2008 Contact75.1 ~100
Customer Care (customercare@ihs.com) if you have any questions.
2009 79.7 ~100
2010 78.2 ~100
2011 77.9 ~100
2012 79.9 ~100
2013 80.4 ~100
2014 80.8 ~100
2015 81.3 ~100
2016 81.3 ~100
2017 80.8 ~100
Sources: Paper Recycling Promotion Center; IHS Markit (data for 2017). © 2018 IHS Markit
In Japan, paper companies have resorted to the following strategies to ensure continued survival in the face of global
competition and depleted wood resources.
• Construction of production capacity in China to capitalize on the rapidly growing market. Japanese papermaking
companies have increased their presence outside Japan through alliances and/or joint ventures for pulp and paper
production and supply, since the Japanese market is mature and no significant growth is expected for the future.
• Increased investment in new production technologies to sustain environmental quality and product reliability.
• Continued investment to maintain pulp resources, including plantations around the world, and the development of new
technologies that can utilize all kinds of wastepaper as raw material.
• Increased R&D collaboration between papermaking companies and paper chemical producers as well as between
papermaking companies and printing machine companies.
China
Pulp and paper supply/demand
Pulp
Chinese pulp production totaled at 79.25 million metric tons in 2016. Recycled pulp accounted for almost 80% of total
pulp production, with the remainder coming from both wood and nonwood resources. Nonwood resources include
bamboo, straw, reed, and bagasse.
China consumed 98 million metric tons of pulp in 2016. Imported wood pulp accounted for 19.2% of overall pulp
consumption. Consumption of recycled pulp has been steadily growing. In 2016, recycled pulp satisfied 65% of overall
pulp consumption, up from 63% in 2011. The following table shows historical data on Chinese supply and demand for pulp.


Chinese supply/demand for pulp
Average annual
growth rate,
2014–16
2005 2008 2011 2014 2016 (percent)
Production
Recycled pulp 28,100 44,390 56,600 61,890 63,290 1
Wood pulp
Contact Customer Care (customercare@ihs.com) if2 you have any questions.
3,710 6,790 8,230 9,620 10,050
Nonwood pulp 12,600 12,970 12,400 7,550 5,910 -12
Total production 44,410 64,150 77,230 79,060 79,250 0.1%
Importsa 7,296 9,021 13,304 15,600 18,810 10
Exportsa 47 72 99 100 96 -2
Consumption 51,659 73,099 90,435 94,560 97,964 2
a. Import and export data are for wood pulp.
Source: China Technical Association of Paper Industry (CTAPI) Annual Statistics—2005–16. © 2018 IHS Markit
Despite the growth in forest acreage in the last 10 years, wood remains a scarce resource in China, and pulp producers have
been exploring technology to manufacture good-quality nonwood pulp. From 2005 to 2011, nonwood pulp production was
more than 12 million metric tons, which is the target of the Twelfth Five Year Plan (2011–15). However, nonwood pulp
production has been declining since 2012 as smaller, outmoded nonwood pulp mills were shut down.
In addition to nonwood resources, Chinese paper mills heavily rely on recycled pulp. Between 2012 and 2016, China
imported around 29 million metric tons of wastepaper annually for conversion to pulp. As part of the country’s resource
conservation program, China targeted a recovery rate for of 47.6% for wastepaper in 2016, from 43.8% in 2010.
China relies heavily on imported pulp. In the last five years, nearly 9.5 million metric tons of new wood pulp capacity
came onstream outside China. The extra supply triggered a drop in the global price of wood pulp. At the same time,
overcapacity in China’s paper and paperboard industry caused domestic pulp prices to weaken further. Competition
worsened in 2017.

Production of paper and paperboard grew at a rate of about 15% per year during 2000–05. The growth rate slowed to 11%
per year between 2005 and 2010 as a result of the global recession of 2008–09. After 2009, industry growth hovered
around 7–8% per year but dropped dramatically to 3.2% in 2012. Since then, production levels have steadily dropped,
falling 1.4% from 2015 to 2016. This trend is expected to continue in the next few years.
Total production of paper and paperboard amounted to 108.550 million metric tons in 2016. The table below shows
historical Chinese paper and board production by application.


Chinese production of paper and paperboard
Average annual
growth rate,
2014–16
2005 2008 2011 2014 2016 (percent)
Graphic
Newsprint 3,190 4,600 3,900 3,250 2,600 -10.6
Uncoated print and writing paper 10,700 14,000 17,300 17,150 17,700 1.6
Coated paper 3,650 5,500 7,250 7,750 7,550 -1.3
Total graphic 17,540 24,100 28,450 28,150 27,850 -0.5%
Packaging
Case materials 9,800 15,300 19,900 21,800 23,050 2.8
Carton board 7,900 11,200 13,400 13,950 14,050 0.4
Wrapping 5,100 5,600 6,200 6,500 6,750 1.9
Corrugated paper 9,500 15,200 19,800 21,550 22,700 2.6
Total packaging 32,300 47,300 59,300 63,800 66,550 2.1%
Sanitary and household 4,360 5,500 7,300 8,300 9,200 5.3
Specialty paper and board 900 1,400 2,100 2,500 2,800 5.8
Other 900 1,500 2,150 1,950 2,150 5.0
Total 56,000 79,800 99,300 104,700 108,550 1.8%
Chinese production of paper and paperboard

70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2005 2008 2011 2014 2016
Graphic paper Packaging paper and board Sanitary and household paper Other
Graphic
Newsprint. Of the three applications of graphic paper, newsprint has borne the brunt of the shift to digital media.
Production of newsprint has been falling since 2009; between 2011 and 2014, the rate of decline averaged more than 7%
annually. From 2015 to 2016 newsprint paper production fell almost 12%. Shrinking demand has led to overcapacity and
weak prices. Producers are working on improving paper quality to retain readership. Many newsprint paper capacity have
been gradually converted into packaging paper production.
Uncoated print and writing paper. China has been constructing large-scale mills using advanced technology to produce
uncoated print and writing paper since 2008. However, the industry is still characterized by many mid-size and smaller
paper mills that take nonwood pulp or waste fiber as fiber material. Product quality is typically at the low end and
manufacturing is costly because of high energy consumption and lack of pollution abatement programs. The industry has


been phasing out these mills since 2009; between 2011 and 2015, over 3.500 million metric tons of low-end capacity were
shut down.
Production of uncoated print and writing paper increased steadily at 5–6% per year between 2005 and 2012. However, the
industry has been in aPlease
downwarduse Adobe,
trend Chrome,
since 2013. Futureor Internet
demand will Explorer to read
be influenced by the this file. and cultural
economy
advancement of the country. China’s consumption of uncoated print and writing paper will have a lower annual growth
rate at 1–2% level.
Coated paper. Production of coated paper

Contact Customer Carefell(customercare@ihs.com)
for the very first time in 2013 and has been
if you have declining ever since. Over 80% of
any questions.
the coated paper market is converted to offset printing paper for use in printing, advertisements, and packaging. With the
offset printing paper market maturing, manufacturers of coated paper are exploring new applications for their products.
One example is coated paper use for digital ink-jet print paper.
Packaging
China’s packaging paper is classified into four categories: case materials, carton board, wrapping, and corrugated materials.
Corrugated materials were the best performing packaging segment in 2016. Prices were robust because of an increase in
raw material prices and supply reduction brought about by the closure on environmentally noncompliant facilities. In the
last quarter of 2016 alone, prices for corrugated materials rose by 50%.
Carton board capacity has been growing since 2015, driven by the need for high-quality packaging. At the end of 2016,
China’s annual manufacturing capacity for carton board reached 11 million metric tons. The industry is highly
concentrated with four producers accounting for 81% of the total capacity, giving producers a greater advantage in
negotiations. In contrast, an increasing number of middle and small-scale carton board producers have been pressured to
close operations owing to the high cost of environmental compliance. The loss of capacity has contributed to
strengthening in cartonboard prices since 2016.
Sanitary and household

Of all the paper applications in China, sanitary and household paper remains the fastest growing market. Production grew
at 9% per year between 2005 and 2011 and was one of a few applications to continue growing through 2016. China
continues to improve the technology, mill size, and product quality. Exports of sanitary and household paper grew around
7% from 2015 to 2016, and has been slowing down compared with previous years. In the last four years, paper
manufacturers have invested in large-scale (more than 100,000 metric tons of annual capacity) paper-producing lines. The
following table and chart show the progression of capacity since 2010.
Chinese annual capacity additions for sanitary and

household paper
2010 404
2011 574
2012 1,105
2013 832
2014 1,230
2015 1,060
2016 1,306
2017 3,075


Chinese annual capacity additions for sanitary and household paper
3,500
3,000
2,500
2,000 Contact Customer Care (customercare@ihs.com) if you have any questions.
1,500
1,000
500
0
2010 2011 2012 2013 2014 2015 2016 2017
The start-up of newer mills has led to an overcapacity in the industry. It is expected that continued demand and the phase-
out of older, smaller mills will help balance supply with demand. China’s consumption of sanitary and household paper
amounted to 5.0 kilograms per capita in 2016. It is growing, but still well below that of developed countries. Thus, further
growth in consumption is possible, which would lead to an improved growth rate in the next five years.
Specialty paper and board

Specialty papers include a variety of small-volume items such as decorative papers, wallpapers, filter paper, electronic
papers, thermotransfer paper, and art papers. From 2005 to 2011, specialty paper consumption increased 15% annually.
The growth rate slowed during 2011–16 because of the sluggish macroeconomic picture. In past years, specialty paper
demand for construction applications had robust growth, but slowed along with the deceleration in construction activity.
Nevertheless, specialty paper demand is expected to enjoy a higher growth rate than other paper applications in the next
five years. Manufacturers are cultivating new applications in medicine and health care.
Mergers and reintegration will occur in the near future in the specialty paper industry. Mergers strengthen company
capabilities and push out smaller, uncompetitive companies. The trend in China’s paper industry is to move from
commodity paper to specialty paper manufacturing. The rise in specialty paper prices will continue in the next few years,
leading to increased investment in the industry.
Pulp and paper producing companies

Pulp
Most of the papermakers in China, particularly the larger companies, operate their own pulp mills for captive use. Only a
few of these companies supply the merchant market, and even fewer operate pulp mills solely for external sales. The table
below lists Chinese wood pulp producers in 2017.


Chinese producers of wood pulp—2017
Annual capacity
Pulp (thousands of Bleaching
process
technology metric tons) Remarks
Asia Symbol Pulp & Paper Co., Ltd. Bleaching sulfate 1,850 ClO2-H2O2-ClO2 Fully operational in 2016.
Fujian Nanping Paper Co., Ltd. Semichemical 170 — Captive.
Fujian Nanping Paper Co., Ltd. Semichemical 70 — Captive.
Fujian Qingshan Paper Co., Ltd. Mechanical 100 ClO2-H2O2-ClO2
Gold East Paper (Jiangsu) Co., Ltd.
Contact Customer Care Semichemical 260
(customercare@ihs.com) H O have any questions.
if you Captive. 2 2
Guangxi Jingui Pulp & Paper Co., Ltd. Semichemical 750 H2O2 Subsidiary of Asia Pulp
and Paper (APP).
Hainan Jinhai Pulp & Paper Co., Ltd. Bleaching sulfate 1,500 ClO2-H2O2-ClO2 Subsidiary of Asia Pulp
and Paper (APP); full op-
eration in 2016.
Henan Xinya Paper Group Semichemical 100 H2O2 Captive.
Hunan Binzhou Yunong Semichemical 170 H2O2 Captive.
Paper Co., Ltd.
Hunan Juntai Pulp & Paper Co., Ltd. Chemical 400 Transfer to chemical pulp.
Jiangsu Bohui Paper Co., Ltd. Semichemical 510 H2O2 Bohui is selling a pulp pro-
ducing line.
Jiangxi Chenming Paper Co., Ltd. Semichemical 190 — Captive.
Jiaozuo Ruifeng Paper Co., Ltd. Semichemical 150 H2O2
Jilin Chenming Paper Co., Ltd. Semichemical 90 H2O2 Captive.
Jiulong Xing’an Pulp & Paper Co., Ltd. Nankin sulfate 100 — 50 market, 50 captive.
MCC Paper Yinhe Co., Ltd. Semichemical 100 H2O2 Captive.
Nanning Jinlang Pulp Co., Ltd. Semichemical 70 H2O2 Captive.
Oji Paper Co., Ltd. Bleaching sulfate 700 Full operation in 2016.
Puyang Longfeng Paper Co., Ltd. Semichemical 100 H2O2 Captive.
Shandong Bohui Paper Industrial Semichemical 150 H2O2 Captive.
Co., Ltd.
Shandong Huatai Paper Co., Ltd. Semichemical 110 H2O2 Captive.
Shandong Sun Paper Group Co., Ltd. Chemical 250 Transfer to chemical pulp.
Shandong Zhengda Paper Co., Ltd. Semichemical 90 H2O2 Market pulp.
Shandong Zhongmao Shengyuan Semichemical 100 H2O2 Market pulp.
Paper Co., Ltd.
Shouguang Meilun Paper Co., Ltd. Semichemical 480 H2O2 Captive.
Tianxi Paper Mill China Semichemical 20 H2O2 Captive.
Yuanjiang Paper Co., Ltd. Semichemical 200 H2O2 Captive.
Yueyang Lin Paper Co., Ltd. Semichemical 130 H2O2 Captive.
Yunnan Yunjing Paper Co., Ltd. Bleaching sulfate 200 ClO2-H2O2-ClO2 Packaging.
paperboard
Zhanjiang Chenming Pulp & Paper Bleaching sulfate 700 ClO2-H2O2-ClO2 Full operation in 2016.
Co., Ltd.
Zhongye Meili Paper Co., Ltd. Semichemical 100 H2O2 Captive.
Total 9,910
Chemical and semichemical pulping processes dominate the manufacture of primary pulp. The sulfate chemical pulping
process is used in 50% of China’s wood pulp capacity; semichemical pulping accounts for 46.5% and mechanical pulp for
3.5%. Technology based on sulfite chemistry is gradually disappearing as the newly built plants adopt sulfate pulping
technology. The hydrogen peroxide bleaching process represents 40% of China’s pulp capacity.

There are 2,757 paper manufacturing enterprises in China. Of this number, over 2,337 are private companies, 350 are joint
ventures, and 70 are government owned. In 2016, small paper mills represented 45% of capacity, while large and midsized
paper mills (exemplified by the companies listed in the following table) accounted for 55% of the total. The industry has


consolidated, especially in the last five years, and the market share held by the top 10 producers increased from 29% in
2010 to 39% in 2016. The table below lists the major Chinese producers of paper and paperboard in 2015 and 2016.
Major Chinese producers of paper and paperboard

Production
2015 2016 Primary products
Guangdong Nine Dragons Paper (Holdings) Limited
Dongguan, Guangdong 12,630 13,310
Contact Customer Care (customercare@ihs.com)Packaging
if youpaperboard.
have any questions.
Jiangsu Lee & Man Paper Manufacturing Limited
Changzhu, Jiangsu; Chongqing; 5,195 5,431 Packaging paperboard.
Dongguan, Guangdong
Shandong Chenming Paper Group Co., Ltd.
Shouguang, Shandong 4,180 4,426 Coated writing paperboard, copperplate paper, paperboard.
Shandong Sun Paper Group Co., Ltd.
Yanzhou, Shandong 3,139 3,789 Coated writing card paper, copperplate card paper, copy paper.
Anhui Shanying Paper Co., Ltd.
Maanshan, Anhui 2,940 3,540 Packaging paperboard.
Huatai Group Co., Ltd.
Dongying, Shandong 3,080 3,187 Newsprint.
Fujian Liansheng Paper Industry Co., Ltd.
Zhangzhou, Fujian 2,320 2,350 Packaging paperboard.
Ningbo Zhonghua Paper Group
Ningbo, Zhejiang 2,220 2,340 Coated writing paper.
Jiangsu Gold East Paper (Jiangsu) Co., Ltd.
Zhenjiang, Jiangsu 2,034 2,077 Coated paper, letterpress, newsprint.
Shandong Bohui Paper Industrial Co., Ltd.
Zibo, Shandong 1,810 1,979 Coated paper, hectograph paper, letterpress, newsprint, paper-
board, writing cardboard.
Long Chen Paper Co. Ltd.
Wuxi, Jiangsug 1,608 1,895
Dongguan Jianhui Paper Co., Ltd.
Dongguan, Guangdong 1,354 1,430 Coated paper.
Zhejiang Jingxing Paper Co., Ltd.
Pinghu, Zhejiang 1,231 1,310 Packaging paperboard.
Jiangsu Gold Hongye Paper Co., Ltd.
Suzhou, Jiangsu 1,237 1,293 Sanitary tissue.
China Sunshine Paper Holding
Company Limited
Weifang, Shandong 1,138 1,246 Packaging paperboard.
Jinhai Pulp and Paper Industry Co., Ltd.
Haikou, Hainan 1,077 1,089 Pulp and graphic paper
Jinzhou Paper Co., Ltd.
Dongguan, Guangdong 853 1,059 Paper board.
UPM (Changshu) Paper Co., Ltd.
Changshu, Jiangsu 895 1,000 Coated graphic paper.
Shandong Tralin Paper Co., Ltd.
Gaotang, Shandong 774 931 Coated paper, copperplate paper, letterpress, newsprint, pulp.
Henan Yinge Investment Group
Luohe, Henan 759 836 Graphic paper, household paper, packaging paper.
Henan Xinya Paper Group
Xinxiang, Henan 686 759 Coated paper.
Wuhan Golden Phoenix Paper Co., Ltd.
Wuhan, Hubei 473 732
Zhejiang Xinshengda Holding Group Co., Ltd.
Fuyang, Zhejiang — 710
Jiangsu Gold Huasheng Paper Co., Ltd.
Suzhou, Jiangsu 628 626 Art board, carbonless paper, ivory wood-free paper, photocopy


Major Chinese producers of paper and paperboard (continued)
Production
2015 2016 Primary products
paper, wood-free paper.
Henan Dahe Paper Industry Co., Ltd.
Zhengzhou, Henan 620 593 Paperboard.
Shandong Guihe Xianxing Paper Co., Ltd.
Zibo, Shandong 558 576 Letterpress.
Guangzhou Paper Industry Co. Ltd.
Guangzhou, Guangdong 535 505 Coated paper, paperboard.
Shandong Henglian Paper Co., Ltd.
Weifang, Shandong 418 503 Sanitary tissue.
Asia Symbol Pulp & Paper Co., Ltd.
Jiangmen, Guangdong 492 500 Copy paper, packaging paper.
There are no plans to add any new paper capacity in the near future.
Environmental issues
Environmental pollution has been a serious problem in China, brought about by the rapid expansion of manufacturing in
the past 20 years. The paper and pulp industry is no exception and emission control has become an important goal. In
2015, the pulp and paper industry was responsible for 13% of all the total wastewater discharged from manufacturing, 13%
of chemical oxygen demand, and 6% of the total ammonia emissions. These figures are considerably lower than in 2012.
Nevertheless, the industry has made progress in certain areas. For example, water demand per ton of paper production
dropped from 103 cubic meters in 2005 to 80 cubic meters in 2010, and then to 30 cubic meters in 2016. Energy
consumption declined from the standard 1.38 metric tons of coal per ton of paper in 2005 to 1.1 metric tons in 2010, and to
0.53 metric ton in 2016. It is expected to drop further to 0.48 metric ton of coal per ton of paper in 2020.
The government’s Paper Industry Development Policy for 2010–20 sets a target of 26.5 million metric tons for paper and
paperboard capacity and the closure of 6.5 million metric tons of antiquated capacity. The emission-control policy calls for
an upgrading of manufacturing technology with a focus on saving energy and water resources while controlling
pollutants.
With the emphasis on conservation, the paper industry’s water consumption is leveling off. More importantly, the use of
recycled water as a share of overall water consumption has grown from about 38% in 2001 to 66% in 2012 and to 75.5% in
2016. The goal is toward a closed water supply system.

Major trends affecting China’s pulp and paper industry are listed below.
• Between 2014 and 2017, at least 600 paper and board mills were shut down because of the high cost of water treatment.
With the enactment of the Environmental Protection law in 2015, an increasing number of paper mills, especially in the
coastal areas, will be shut down over environmental noncompliance. In general, attention to the environment will
intensify. The use of safe and environmentally friendly papermaking chemicals are increasingly encouraged.
• Compared with developed countries, China’s paper industry is disadvantaged in terms of product variety and quality.
China produces some 600–700 commodity grades of paper and paperboard domestically, but needs to import specialty
grades. This is the primary reason for the slower development of the specialty paper chemicals industry. China is
expanding its R&D efforts toward production of better grades of paper and paperboard products.
• Small-scale companies will face more challenges in the next few years. Company size and scale are trending toward
larger production capacity, increased product diversity, and stronger R&D.


• Paper and paperboard production declined in 2012–14. Growth stabilized in 2015–16, but the rate of growth was slow
(only 1.8% from 2011 to 2016). The paper market is showing saturation and it will be very difficult to achieve higher
growth rates in production in the future.
Please
• The rise of digital media use Adobe,
has impacted Chrome,
the demand or Internet
for newsprint and Explorer towriting
printing and read this file.
papers. In contrast,
consumption for packaging is growing, enabled by internet purchasing.
• Recovery and utilization of wastepaper will continue to be a priority because China lacks wood fiber resources. In 2016,
China consumed almost
Contact 98 million Care
Customer metric(customercare@ihs.com)
tons of pulp, 65% of which cameiffrom
you wastepaper
have any pulp. Although forestation
questions.
has improved the availability of wood, the industry should also expand the development of nonwood resources.
Other Asian countries

The following table shows production of pulp, paper, and paperboard in Asia outside of China and Japan in 2017.
Other Asian production of pulp, paper, and

paperboard—2017
Paper and
Pulp paperboard
Bangladesh — 547
India 1,687 11,284
Indonesia 7,177 11,014
Malaysia 160 1,734
Pakistan — 796
Philippines — 817
South Korea 497 11,743
Taiwan 330 3,801
Thailand 1,069 5,179
Vietnam 490 2,534
Total 11,409 49,448
In 2017, Other Asian production of pulp was estimated at 11.4 million metric tons, while production of paper and
paperboard was estimated at 49.4 million metric tons. Indonesia was the largest producer of pulp, followed by India and
Thailand. South Korea, India, and Indonesia were the three largest producers of paper and paperboard.
In South Korea and Taiwan, there are several paper manufacturers with reasonably large capacity, using paper chemicals
similar to those used in Japan. In Indonesia, pulp and paper production has been gradually growing in recent years.
Substantial amounts of coated paper are being produced and paper chemicals are being used to some extent. The
government considers the pulp and paper industry one of Indonesia’s core industries because the country has huge pulp
resources. In India, pulp and paper production has been growing in recent years. Although India is a large country with the
world’s second-largest population, it produces almost the same amount of paper and paperboard as Indonesia. Thailand has
a medium-sized paper industry.
South Korea
In 2017, South Korea produced an estimated 497,000 metric tons of pulp and 11.7 million metric tons of paper and
paperboard.


South Korean production of pulp, paper, and
paperboard—2017
Pulp
Chemical pulp 438
Mechanical pulp 59
Total pulp 497
Printing and writing paper 2,657
Newsprint 1,448
Sanitary tissues 525
Wrapping and packaging 188
paper
Other 325
Paperboard 6,600
Total paper and paperboard 11,743
South Korea recovered about 8.3 million metric tons of wastepaper in 2017, representing a recovery rate of about 82%.
Some of the largest South Korean pulp and paper producers are shown below.
Leading South Korean producers of pulp, paper, and paperboard—2018

Annual capacity
Plant (thousands of
Company location metric tons) Product
Pulp
Moorim P&P Ulji-gun, Ulsan 450 Pulp
Paper
Hansol Group
Hansol Paper Cheonan, Chungcheong- 100 Decorative papers
buk-do
Daejeon, Daejeon 600 Duplex paperboard
Janghang, Chungcheong- 650 Printing and thermal printing
nam-do papers
Moorim Paper Group
Moorim Paper Jinju, Gyeongsangnam-do 1,100 Printing papers
Moorim P&P Ulji-gun, Ulsan 500 Paper
Moorim SP Buk-gu, Daegu 100 Specialty papers
Total paper 3,050
Per capita consumption of paper and paperboard in South Korea was about 185 kilograms in 2010, 186 kilograms in 2013,
and 193 kilograms in 2016. Growth in consumption will be moderate in the next five years.
Taiwan
Taiwan produced an estimated 3.8 million metric tons of paper and paperboard in 2017. Paperboard accounted for about
79% of this figure. The large share of paperboard production characterizes Taiwan’s paper industry.
Taiwanese production of pulp, paper, and paperboard in 2017 is shown in the following table.


Taiwanese production of pulp, paper, and
paperboard—2017
Pulp
Chemical pulp 330
Mechanical pulp and other 0
Total pulp 330
Paper
Printing and communication 423
Sanitary tissue 224
Packaging and wrapping 41
Newsprint 0
Other 95
Paperboard 3,017
Total paper and paperboard 3,801
Sources: IHS Markit. © 2018 IHS Markit
Taiwan recovered about 3.5 million metric tons of wastepaper in 2017, representing a recovery rate of about 77%. With
regards to pulp supply, Taiwan imports more than 60% of total pulp consumed.
In Taiwan, Cheng Loong Corporation and Yuen Foong Yu Paper are the leading producers of papers.
Cheng Loong was established in 1959 and has production facilities for paper and paperboard in Tayuan, Chupei, Hsinchu,
and Holi—with a total annual production capacity of more than 2.25 million metric tons. Cheng Loong produces
industrial paper products such as linerboard, corrugating medium, and core board; various duplex-coated board products;
gypsum board and playing card board; art and office papers; writing and printing paper; kraft paper and postconsumer
paper; and household paper products such as tissues, napkins, and towels.
Yuen Foong Yu Paper was established in 1950 and produces various paper and paperboard such as liner board, coated
duplex board, corrugated medium, art paper, kraft paper and container board, and paper pallets.
Per capita consumption of paper and paperboard in Taiwan was about 174 kilograms in 2010, 171 kilograms in 2013, and
163 kilogram in 2017. Growth in consumption of paper and paperboard is expected to remain flat in the next five years.


Overview of the specialty paper chemicals industry
NAFTA
Structure of the industry
In the NAFTA region (the countries covered by the North American Free Trade Agreement—United States, Canada, and
Mexico) the paper industry does not manufacture its own specialty paper chemicals but relies almost totally on paper
processing service companies, specific product line chemical manufacturing companies, and selected formulators to
supply the chemical
Contactneeds of the mills.
Customer The majority
Care of suppliers have little in
(customercare@ihs.com) if common, except
you have any occasionally
questions.similar
products. The wet-end service companies are the exception. Most of them market functional products that are chemically
dissimilar and have no common function in use. Acquisitions and marketing joint ventures have led the largest suppliers
to evolve toward a model of a complete specialty paper chemical supplier (e.g., Kemira, Ecolab/Nalco, Solenis).
Historically, companies typically have a specialization such as pulping, bleaching/delignification, wet-end processing and
papermaking, coloration, or surface coatings. Smaller suppliers have been focused on only one or two types of products.
However, beginning in the mid-1990s, mills shifted to single-source suppliers in the wet end, not only to reduce costs but
also to establish a responsibility partnership. Most wet-end specialty chemicals are funneled through selected, broad
product-based service-oriented companies that have alliances with several functional chemical producers.
Within their areas of expertise and product lines, today’s marketers to the paper industry have a large number of product-
specific variations (e.g., within starches or dyes or defoamers). The service companies that concentrate on wet-end mill
problems, on the other hand, not only supply deposit-control agents, but also market products such as biocides, corrosion
inhibitors, defoamers, and dispersants.
Particularly in the wet end, many specialty paper chemical suppliers market programs and formulate a composite solution
that covers several product lines. Their success depends on their chemical/technical knowledge and formulation skills,
their fast response to customers’ changing needs, their reputation for reliability, and their accountability to mill
management. Companies do not have to be basic manufacturers of chemicals to do business, but service, water and
papermaking knowledge, and good customer relationships are essential.
A few small regional paper service formulators still exist solely for wet-end service to a few local paper mills. However, no
supplier with close to a 5% market share of the NAFTA specialty paper chemicals business manufactures or formulates
specialty chemicals solely for the pulp and paper industry. The largest companies focus on sales to paper and board mills
(e.g., Kemira, Ecolab/Nalco, Solenis), and their operations are global.
The general structure of the North American specialty paper chemicals industry is illustrated in the following figure. Most
specialty paper chemicals are sold directly to mills and 60–65% are accounted for by one or two functional-product-
category manufacturers. The balance of sales are by formulators and wet-end paper processing service companies that
have positions in sizing, retention and drainage, biocidal, or deposit formation control, and that are exceptionally
knowledgeable in water, fiber, and additives chemistry. The service companies are almost always basic producers of at least
one or two of the core products they market. Distributors play a very small role in functional specialty chemical sales,
while independent formulators of products such as pulp mill defoamers and specialty wastepaper deinking compositions
account for less than 5% of the total NAFTA market.


General structure of the North American specialty paper chemicals industry—2018
Percent of
specialty paper
Major suppliers chemical sales customers
National and international formulators and wet-end
specialty paper chemical service companies:
BASF
Buckman Laboratories 40-55%
Ecolab/Nalco Paper and paperboard
Kemira mills
Solenis Contact Customer Care (customercare@ihs.com) if you have any questions.
National and international manufacturers and suppliers of
functional products such as dyes, starches, latex, ~300 United States
fluorochemicals, silicones, etc.: ~60 Canada
45-60% ~60 Mexico
Archroma
Bercen
Chemours
Dow Chemical
Ingredion
Trinseo
Wacker
Source: IHS
Major participants
The largest suppliers of specialty paper chemicals in the NAFTA region, along with their functional product lines, are
shown in the following table. The companies that sell only one or two different products to the industry usually sell
chemically similar products to other industries such as the food, textiles, pharmaceuticals, mining, chemical processing,
or petroleum industries.


Major NAFTA suppliers of specialty paper chemicals—2018
Pitch Retention
Dyes and and Slimi-
De- Dry- and deposit Pulping drain- cides/ Synthetic Wet-
Bleaching
Please use De- inking strength colorant control
pigment
Adobe, Chrome, or Internet Explorer to read this file. special- age bio- strength Specialty
Company specialties foamers agents additives pigments agents ties aids Sizes cides binders additives coatings
AkzoNobel Chemicals Inc.a X X
Archer Daniels X X
Midland Company
Archroma US, Inc.
Contact CustomerX Care (customercare@ihs.com)
X X
if you haveX any questions.
Ashland Inc. X
Ashland Specialty Chemicals
BASF Corporation X X X X X X X X
Bercen Inc. X X
Buckman Laboratories International, Inc. X X X X X X X
Cargill Inc. X X
The Chemours Company X
Chemstar Products Company X
Dow Corning X X X
Corporation
Dow DuPont Inc. X X X
Grain Processing Corporation X X
Ingredion X X
Incorporated
Kemira Chemicals, X X X X X X X X X
Inc.
Kuraray America, Inc. X
Mallard Creek X
Polymers, Inc.
Momentive Performance Materials X
Montgomery Chemicals LLC X
Münzing Chemie X
GmbH
Nalco Company X X X X X X X
an Ecolab Company
OMNOVA Solutions X
Inc.
Sekisui Chemical X
Co. Ltd.
Solenis LLC X X X X X X X X X
Tate & Lyle X X
Trinseo S.A. X
Vertellus Specialties X
Inc.
Wacker Silicones X
Western Polymer Corporation X
a. AkzoNobel’s specialty chemicals business is currently for sale.
Mergers and acquisitions

Mergers and acquisitions have been a fact of life in the specialty paper chemicals industry for many years. Many small
companies and paper divisions were acquired as profitability became tenuous. The move to consolidate also coincided with
paper company customers’ desire for fewer suppliers with broader product lines and global service. The major changes in
specialty paper chemical companies since 2015 are shown in the following table.


Mergers and acquisitions in the North American specialty paper chemicals market—2015–17
Buyer Seller
Year (headquarters) (headquarters) Remarks
4Q 2017 Ecolab Georgia-Pacific LLC
Please use Adobe, Chrome, or Internet ExplorerEcolab acquired Georgia-Pacific’s paper chemicals
business in November 2017. The business had annual
to read this file.
(United States) (United States)
revenues of $43 million in 2016.
3Q 2017 Dow Chemical DuPont Dow and DuPont merged in September 2017 to become
(United States) (United States) DowDuPont Inc. The company supplies a variety of spe-
cialty chemicals for the paper and pulp industry.
3Q 2015 The Chemours Company DuPont
Contact Customer Care (customercare@ihs.com) Formerly
if you have DuPont’s
anyPerformance Chemicals business.
questions.
(United States) (United States) Spunned off as an independent company in July 2015.
Chemours produces fluorochemical compounds used
for paper coatings.
2Q 2015 Kemira Oyj Akzo Nobel Kemira acquired AkzoNobel’s global paper chemicals
(Finland) (Netherlands) business for approximately €153 million ($203 million).
AkzoNobel’s paper chemicals were part of the com-
pany’s Pulp and Performance Chemicals business.
Kemira’s acquisition excluded AkzoNobel’s pulp bleach-
ing and colloidal silica businesses.
1Q 2015 Ingredion Incorporated Penford Ingredion acquired Penford for approximately $340 mil-
(United States) Corporation lion. Penford became a subsidiary of Ingredion. Both
companies supply industrial starches to the paper in-
dustry.
1Q 2015 Vertellus Specialties Inc. Dow Chemical Vertellus acquired Dow’s global sodium borohydride
(United States) (United States) business.
Approaches to survival and prosperity in the specialty paper chemicals business have included:
• Divesting specialty paper chemical businesses and refocusing on more profitable core businesses that include smaller
portions of the paper business or abandoning the paper business entirely. Examples include Ashland Inc. selling its water
technologies division, now known as Solenis; and Dow Chemical divesting its sodium borohydride business to Vertellus.
More recently, AkzoNobel announced the sale of its specialty chemicals business, which supplies raw materials to the
paper industry, in order to focus solely on its coatings business.
• Broadening paper chemical product lines and geographic coverage through organic growth, acquisitions, and joint
ventures (Ecolab/Nalco acquiring Georgia-Pacific’s paper chemicals group and Kemira buying AkzoNobel’s paper
chemicals business).
• Restructuring and plant closures.
Operating characteristics
Research and development
The pulp and paper industry in the United States concentrates on operating efficiencies and marketing products. R&D
activities are focused on environmental regulatory compliance, equipment optimization, and development of paper
grades that address customer preferences for green chemistry and sustainability (e.g., lower greenhouse gas emission life
cycles, “lightweighting” of paper products without sacrificing performance). R&D investments currently average less
than 0.5% of annual sales for the entire industry. Spending on improvements for chemical products and processes is nearly
completely dependent on chemical suppliers, equipment manufacturers, and paper research organizations (government,
academic programs, and independent institutes).
R&D spending by specialty paper chemical suppliers declined from 3.5–4.0% of sales in the early 1990s to less than 3% in
the late 1990s to mid-2000s, and less than 1% in the late 2000s. Almost all R&D efforts are applications-oriented in order
to solve specific problems in a mill. Typically, larger companies that manufacture a particular product sold into multiple
market/application segments have ongoing research programs that benefit the paper industry. Some areas of R&D focus
include coating chemistry, filler technology, and further efforts to improve the strength and surface print quality of the
paper, reduce papermaking chemical consumption and loss, and reduce contamination of circulating and effluent waters.


Manufacturing and technology
The technology involved in formulating or manufacturing paper chemical specialties ranges from mixing or diluting
purchased ingredients (e.g., defoamers) to the highly proprietary, often patent-protected production of some very
sophisticated chemicals (e.g., fluorochemicals,
Please micropolymer
use Adobe, Chrome, retentionExplorer
or Internet aids, and polyamide-epichlorohydrin
to read this file. resins).
Formulations such as deinking agents and deposit-control agents depend on the skill and practical experience of the
formulators. The formulators’ knowledge of paper mill operations and active ingredients, and the application of this
expertise to meet specific customer requirements are critical.
Contact
Many synthesized paper Customer Care
specialties, such (customercare@ihs.com)
as hydroxyethylated if you alcohol,
starch and polyvinyl have any questions.
are based on widely known
and relatively simple technology. Even products such as surface sizing, biocides, polyamide-epichlorohydrin resins, alkyl
ketene dimer, dyes/fluorescent whitening agents, and fluorochemicals are well documented in the patent literature. It is a
company’s commitment and ability to apply/modify these products to the paper industry that engenders product
development leadership.
Production facilities for many formulated paper chemical products are very simple, generally consisting of a series of open
or closed tanks equipped with mixing devices or agitators. Emulsion, dispersion, and batch processing technology are
crucial. Polymer manufacturing expertise has become extremely important for several functional classes of specialty
paper chemicals.
Marketing and customer service

For wet-end specialty chemicals, intensive customer service is required. Sales personnel, doubling as customer service
engineers, need to have an intimate knowledge of papermaking processes and the interactions of various chemical
additives. Paper mills seek solutions to manufacturing problems when they negotiate a specialty paper chemicals
contract.
Paper companies have sought to reduce the number of specialty chemical vendors they deal with, simplifying the
purchasing process, and increasing process accountability. In response, vendors have broadened product lines and
expertise, typically through acquisitions or marketing joint ventures commonly with equipment suppliers and other
complementary vendor relationships. In a comprehensive contract, the specialty chemical vendor may provide:
• Design and monitoring of the chemical system via dosing equipment.
• In-line computer checks.
• Analysis of the problem furnish, deposit, web, or waters to ensure that the right chemicals are fed to the right part of the
system in the right amounts.
• Adjustments to the system based on recycled content, quality, and environmental compliance measurements.
• Tracking efficiency calculations on the in-place control program.
• Chemical inventory control and restocks, if not already automated.
Improved chemical product introductions initially involve providing product samples to the mill’s technical personnel for
laboratory evaluation. Extensive laboratory equipment is maintained by the larger paper chemical suppliers in order to
provide as much data as possible on a product’s performance under simulated mill conditions.
When it is time for a mill trial, technical service representatives spend days or even weeks at a mill. Acceptance of a
product by one mill does not necessarily ensure acceptance by any other mill within the same company because of
differences in operating conditions, such as type of virgin and recycled pulp used, water quality, machine differences, and
intended application of the finished paper products. Mill trials are expensive, entailing disruption of the mill’s normal
production schedule and requiring mill personnel time.


Corporate purchases of specified products and service contracts have become more common as pulp and paper companies
trend toward preferred and single-supplier partnerships. In the case of routine products (e.g., styrene-butadiene latex or
starches), purchases are made as large as possible to achieve volume discounts at the corporate purchasing level under an
annual contract. At both large multimill paper companies and small specialized paper companies, each mill has the
Pleasechemical
ultimate approval of specialty use Adobe, Chrome,
deliveries, or Internet
with a keen focus onExplorer to read thisprocess
product specifications, file. compatibility, and
delivery scheduling. Consequently, it is typically necessary to support specialty paper chemical sales on an individual mill
basis.
Contact
Within a specific Customer such
area of application, Care
as (customercare@ihs.com)
dyes or biocides, it is important if
toyou
havehave anyproduct
sufficient questions.
line depth to
resolve the problems of different mills comprehensively. For instance, Buckman Laboratories, a leader in biocidal control,
has many chemically different antimicrobial and biostatic formulations. Specialties that function independently and have
little impact on other parts of the papermaking system, such as sodium borohydride, are typically sold by a few companies
with a less comprehensive product and service capability.
Paper industry specialty chemicals are usually supplied in emulsion or liquid form to function in computerized metering
systems. For logistical ease, most specialty chemical vendors have production close to large paper production regions or
provide local warehousing and technical service.
Mills keep low inventories of chemicals and emphasis is placed on prompt and increasingly automated ordering of
chemicals. Several of the largest suppliers (such as Nalco) have totally automated, level-monitoring devices that trigger an
order for delivery of more product. Round-trip (returnable, reusable) containers and handling cleanup/disposal are an
integral part of specialty chemical customer service. Typically, vendors deliver cubic, refillable tanks known as “tote bins.”
These containers take up the space of a pallet and reduce the handling, hazards, and disposal/recycling problems of 55
gallon drums.
Profitability and cost structure

Larger companies do not provide specialty paper chemicals data separately in financial reports, and paper specialty
products typically represent only a fraction of a company’s total operations. In other cases, companies are privately held
so their financial information is not available to the public. Nevertheless, the trend in profitability has generally been
declining since the mid-1990s; historically, the industry has been profitable when technical service or total systems are
supplied as a package together with the chemicals. Suppliers of large-volume, quasi-commodity chemicals, such as coating
latex or starches, historically have had lower profit margins than broad-range, full-service companies.
Demand for almost all paper chemical products can be considered mature, declining, or totally dependent on paper
industry output. Some products require a significant amount of technical monitoring and assistance for optimum
performance such as the chemicals used in the wet-end of the paper machine, while others (e.g., dyes and fluorescent
whitening agents) are well-known standardized products that have been handled by mills for years. Some chemicals
require a long introduction and acceptance timeframe (e.g., ASA or AKD) while others are relatively quickly adapted for
use (e.g., hydroxyethylated starch). Some products require a sizable R&D budget (e.g., enzymes). Some paper chemicals
are priced with special handling equipment (e.g., ASA) or disposal services (e.g., biocides). Others are produced in multiple
locations by many companies across the NAFTA region and relatively close to mills (e.g., wet-strength resins). Very few
suppliers sell products exclusively to the pulp and paper industry. Most companies have multiple markets for their
specialty chemical products, such as Archroma (formerly Clariant) and Buckman.
Some suppliers of specialty paper chemicals are large corporations with significant expenses for administrative and
nonpaper chemical activities (e.g., BASF, DowDuPont) that may eventually be factored into paper chemical prices. Other
companies have significant global operations for both paper and nonpaper chemical sales that must be considered for
currency exchange differences and overall company profits (e.g., Archroma, BASF, Kemira). Smaller specialty paper
chemical suppliers are active in only one or two product areas. Others supply many products for a total system or
programmed approach and provide a breadth of products and services (e.g., Ecolab/Nalco, Solenis). Depending on the
supplier’s product and customer base, some specialty paper chemical products (e.g., defoamers) may be priced for overall
penetration or maintenance of a mill account rather than reflecting the full cost of making, marketing, and selling a
specific product.


Government regulations
The most important environmental regulations are enforced by the US Environmental Protection Agency (EPA).
Additional regulations are enforced by state and local government agencies. There are eight major federal environmental
regulations that applyPlease
to the pulp
useand paper industry.
Adobe, Chrome, or Internet Explorer to read this file.
US federal environmental regulations applying to the pulp and paper industry
The Clean Air Act and Amendments (CAAA) 1970
The Clean Water Act and Amendments (CWA) 1972
The Safe Drinking Water Act 1974
The Resource Conservation and Recovery Act (RCRA), Regulating the Handling and Disposal of Waste 1976
The Comprehensive Environmental Response, Compensation and Liability Act (commonly known as SARA 1976
or Superfund Amendments and Reauthorization Act)
The Toxic Substances Control Act (TSCA) 1976
The Emergency Planning and Community Right-to-Know Act 1986
Cluster Rule 1998
In addition, there are other important federal statutes designed to protect the environment, including the Endangered
Species Act and the National Marine Sanctuaries Act, impacting timber harvests, sources of water, and the quality of water
released from paper production.
The EPA’s 1998 Cluster Rule (the first combined air and water regulations) had the largest specific impact on papermaking.
The goal of the Cluster Rule was to reduce the pulp and paper industry’s toxic releases into the air and water. The rule
provided that all US bleached paper-grade kraft and soda pulp mills utilize elemental chlorine–free (ECF) bleaching with
100% chlorine dioxide substitution. Sulfite paper-grade mills could be converted to either complete substitution of
chlorine by chlorine dioxide or totally chlorine-free (TCF) bleaching. Also included was the elimination of defoamers
containing dioxin precursors, elimination of the use of hypochlorite and high shear mixing for the addition of chlorine
dioxide, and improved brownstock washing. Most mills chose to implement ECF bleaching technologies, while a few
bleached sulfite producers implemented TCF systems.
Preventing water pollution from mill operations has been a perennial regulatory priority. A complete solution to effluent
discharge is known as “closed-loop,” which prevents the release of mill waters altogether. The water is treated and used in
a continuous cycle within the mill. Significant technological advances have been achieved in closed-loop or effluent
minimization technology, including:
• Extended or modified digester cooking to remove more lignin and thereby reduce the degree of delignification that
needs to be done in the bleach plant itself.
• Oxygen delignification including pretreatment steps.
• Bleach plant filtrate recycling technology for ECF mills.
• Commercial bleaching via hydrogen peroxide, oxygen, ozone, and enzymes
The minimization of effluent discharge has produced new challenges. By lowering the kappa number in order to reduce
the volume of bleaching agents via extended delignification, yield and mechanical properties of the pulp have been
affected. Water loop closure also increases scale formation within the mill’s water circulation system and carryover of
chloride compounds into the liquor cycle. It may well be that site-specific solutions combining several of the above steps
will ultimately provide the means to minimize effluent discharges at most of the US bleached kraft ECF pulp mills. A
disadvantage of TCF bleaching within closed-loop systems is the sensitivity of hydrogen peroxide bleach to the buildup of
transition metal concentrations that occurs as mills progressively move toward recirculating water closure. The heavy
metal ions decompose the hydrogen peroxide.


The capital and production costs for these closed-loop mills may be offset by the recovery of chemicals, water and energy
savings, and a reduction in many regulation-related expenditures. All of these circulating water modifications have an
impact on the amount and types of chemicals used at pulp and paper mills.
Trends and opportunities
Major trends occurring in the US pulp and paper industry are highlighted in the earlier Major pulp and paper industry
issues and trends section of this report. Results of these trends and strategic issues that are specific to a particular
specialty paper chemical functional group are discussed in the Specialty paper chemical markets section.
e-Commerce has had an impact on the industry, both for manufacturers and consumers. On the manufacturing level,
internet-based ordering of chemicals has been integrated with process automation, reducing the transaction cost of the
chemical order and speeding its execution. In the consumption end of the industry, e-commerce, in the form of online
shopping, has stimulated demand for packaging paper, one of the few paper sectors left with potential growth for
specialty chemicals.
Critical factors for success

The following are critical considerations:
• Product quality and consistency are expected.
• Mills are cost-driven and purchase lowest-price inputs.
• Fewer vendors are used.
• Mills require technical service and problem-solving from suppliers.
• Internet-based chemical ordering and service capabilities can offer a competitive advantage and an additional level of
customer responsiveness.
Other important considerations include rapid service and in-line monitoring/dosing, use of liquid or emulsion products,
and a deep and broad product line in the case of wet-end additives. Although the above critical factors are common to most
specialty paper chemicals, their relative order of importance varies within the specific groups of chemicals. For example,
in pigment binders, price is often more important to a mill than technical service. Alternatively, technical service and
papermaking knowledge are critically important in the supply of retention, size, and deposit-control products. In the case
of newer products (e.g., selected surface sizes, specialty coatings), technical service extends to providing potential
customers with complete pretrial cost and performance data, regular monitoring of the mill’s operation with the new
product, and a competitively superior, cost-effective, high-performance finished paper product. The ability to address a
mill’s environmental issues is also imperative. An applications-oriented R&D group for specialty paper chemicals is
essential.
Europe
The structure of the European specialty paper chemicals industry is heterogeneous and the result of a long evolution
aimed at supplying the pulp and paper industry with an optimized organizational approach. The manufacturers of
chemical specialties for the paper industry can be subdivided basically into the following categories:
• The chemical divisions of large corporations that offer a wide or full range of paper chemical specialties (e.g., Kemira,
Solenis).
• A number of large corporations that have a limited number of specialized products for the paper industry (e.g., BASF,
AkzoNobel, Trinseo, Wacker, Evonik, Dow, Avebe, Cargill, SNF. Floerger).


• A large number of smaller companies, sometimes family-owned, that supply a limited range of chemicals and
formulations having applications in the paper industry as well as in other industries such as water treatment,
surfactants, or textile chemicals (e.g., Kolb Distribution Ltd., Lamirsa, Quimesa, Münzing, Lamberti).
Please
• Service companies (e.g., Suez,use Adobe,
Ecolab Nalco, Chrome, or Internet
Buckman Laboratories). Explorer to read this file.
The general structure of the European specialty paper chemicals industry is shown in the following figure.
General structure of the European specialty paper chemicals industry—2018

Formulators Percentage of total
Sources or service European specialty Primary Marketing End
Raw material companies paper chemical sales marketers channels users
Toll
manufacturers
Divisions of large Marketing and sales
companies with a 70% force dedicated to Local branch 85-90%
wide range of paper paper industry offices
Divisions of chemicals
large
companies
Divisions of large Agents,
companies with a distributors
narrow range of 10-15%
paper chemicals Product group
marketing and
Small 20% Large, medium,
sales force
specialist Small specialist and small paper
companies mills
Local or regional
paper mills
Service Central marketing

companies 10% and sales force
Large chemical companies supplying a wide range of specialties, such as Kemira and Solenis, typically have one paper-
specific group (paper products division or business unit) or several product-oriented groups (e.g., pulp division, organic
chemicals division, dyes and pigments division, synthetic resins division) involved in developing, producing, and
marketing these products to the pulp and paper industry. Raw materials are usually obtained from a basic materials
division. The formulation is done in close cooperation among marketing, technical support, and manufacturing divisions,
and in some cases in cooperation with key customers. Chemicals used in paper chemical specialties can have a large
number of other applications, which are in some cases more important in terms of volume than the applications in the
paper industry (e.g., acrylic dispersions used mainly for paint manufacturing and to a lesser extent for paper coating
formulations). These companies are not only present throughout Europe via their pan-European branch offices, but
service their customers on a global basis.
Several large companies supply a limited range of specialties that find application in the paper industry (BASF produces
latex, acrylic resins; Eka Chemicals (AkzoNobel) supplies chemicals and systems for pulp bleaching processes; Evonik with
bleaching specialties, deinking agents, and retention and drainage aids; Trinseo with coating binders; Dow Chemical with
chelating agents for bleaching and deinking; SNF Floerger with retention and drainage aids) and operate along lines
similar to the large companies mentioned above, although the effort in marketing and technical service is more reduced
and more narrowly focused on their specific products.
A large number of smaller companies offer groups or ranges of compounds, or formulations based on purchased chemicals,
and service a number of industries with similar requirements. Examples include Münzing Chemie GmbH in Germany,
Lamirsa in Spain, and Kolb in Switzerland. These companies are either subsidiaries of larger groups or family-owned, and
are often more regional in scope.
Companies that have been successful formulators (i.e., Buckman Laboratories, Suez, and Ecolab/Nalco Company) are
better described as service companies. In most cases they have enormous general experience in industrial water handling
and translate their experience to the specific needs of the water-intensive paper industry. They offer specific know-how
and products in the wet end such as the formulation of slimicides or deposit-control agents.


In the case of the standardized large-volume paper chemicals (e.g., coating binders), purchasing is handled by the central
purchasing offices of large paper corporations. In contrast, the specialty chemical customers for the processing of pulp and
paper and the specialty paper additives customers are in general the individual pulp or paper mills. Particularly on the
processing side, each mill has its own characteristics and problems that must be addressed separately. In these cases,
customers and suppliersPlease use Adobe,
of specialty chemical Chrome,
formulationsorare
Internet
in directExplorer to read
contact with this file.
each other, and the products are
supplied directly to the paper mills. Agents account for only a very small proportion of the specialty chemicals supplied to
the European paper industry. Typically, agents help smaller suppliers of specialty chemicals broaden their geographical
area of influence. Very small specialty paper manufacturers may also buy specialty paper additives through agents,
particularly in Contact Customer
countries such as Italy. Care (customercare@ihs.com)
Nonetheless, if you
most mills deal directly with thehave any questions.
manufacturer of the specialty
chemical product, since the technical service element is of vital importance to the paper mills. About 85–90% of specialty
paper chemical sales in Europe are direct from the manufacturer or formulator, and 10–15% are through distributors or
agents.
A large number of companies supply specialty paper chemicals to the paper industry, but only a few provide a complete
spectrum of products covering both processing aids and performance additive chemicals, because paper chemicals
comprise a wide range of products and formulations that are chemically unrelated to each other. Therefore, only the very
large companies that have a wide base of chemicals can cover a wide product spectrum, while many of the large, medium-
sized, and small companies produce only a compound or a limited range of compounds that find a specific application in
the paper industry.
Only a few companies have entered this industry with the specific vision of becoming suppliers to the paper industry and
developing completely new chemicals specifically for the paper industry. In general, entry into this market is a result of a
search for new applications for products that chemical producers already have available. Development work therefore
mainly involves finding the right formulation for use in the paper industry.
Of the companies providing a wide range of products to the paper industry, Kemira and Solenis are among the most
prominent suppliers of specialties. Kemira extended its product range for the paper industry by acquiring LANXESS’ paper
chemicals group and AkzoNobel’s nonbleaching-related business. These large paper chemical companies typically have a
sales and marketing group completely dedicated to the paper industry. This team identifies customer requirements, and
together with technical personnel and the paper products division, screens products already available in-house that could
be used in these special applications. The identified products are then manufactured by the production division according
to formulations developed in the applications laboratories, and are offered as specialty chemicals to the paper industry.
Although several groups may be involved in these product developments or in solving client-specific problems, these large
companies are generally very highly regarded by the paper industry for both their immediate response and the reliability
of their supplies.
A number of other large European companies have entered the specialty paper chemicals market by offering a limited
range of products. These companies use sales personnel for specific product groups that market these products to various
industries, including the paper industry. Technical development and customer service is then handled by the division
offering these chemical products. Typical suppliers in this group of large companies are Wacker, a supplier of defoamers
and coating specialties, and Dow Chemical with its product lines of chelating agents for bleaching and deinking. These
companies eventually developed the strategy of offering only a few specialized products to the paper industry, and
became leaders through these select products rather than by offering a wide range of paper chemicals. Again, the paper
industry is a relatively minor customer for these large companies from the perspective of their total activities, but it
becomes an important customer for the divisions that offer a specific product to the paper industry.
Specialty paper chemicals are of greater relative importance to a number of smaller companies that offer specific products
to the paper industry. This is the case for AVEBE, a Dutch cooperative that produces potato starch and is constantly
searching for new applications and products based on this raw material. AVEBE has been very successful in developing
chemically modified starches used in retention aids, sizing, and coatings.
Another representative company in this group is Kolb in Switzerland. This company—while specializing in the
manufacture of ethoxylated and propoxylated products—successfully established itself as a company specializing in
problems of foaming and interfering substances in the paper and pulp industry through its Kolb Distribution Ltd.


subsidiary. Kolb’s problem-solving orientation for the paper industry involves chemical specialties complemented with
specially developed automatic control, measurement, and dosing devices. Kolb produces a range of specialties for
defoaming, pitch control, deinking, felt and screen cleaning, and biocides. The active ingredients also find applications in
other industries such as leather, cosmetics, and textiles, as well as in industrial cleaners. These active ingredients are
specially formulated toPlease
meet theuse Adobe, Chrome,
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of medium-sized/smaller
companies that service a similar industry mix with similar requirements for specialty chemicals.
These smaller companies sometimes have sales throughout Europe (such as in the case of AVEBE) when they have a
Contact
dominant position Customer
in a specific Care
product. (customercare@ihs.com)
By and if you
large, however, they are regional have with
suppliers any long-established
questions. ties with
regional paper mills, since they do not generate a sufficient volume of business to justify a European-wide supply network.
An alternative for these companies to broaden their geographic business area is to work with agents or exclusive
distributors.
The service companies that are suppliers of specialties to the paper industry, such as Ecolab/Nalco, Lamirsa, Quimesa, and
Buckman Laboratories, concentrate on areas of the paper industry that are most customer-specific (i.e., where a specific
solution is necessary for each customer because the problems are different from site to site). These areas mainly concern
problems with water treatment, defoaming and pitch control, deinking, and biocides. The service companies offer
packages that include technical service as well as formulations. Since the technical service element is so important, these
companies have subsidiaries that operate at the national level, at least in the more important markets, since European
manufacturers—not only the paper mills—prefer to deal with local suppliers when a great amount of personal contact
and cooperation as well as short response times are required.
A selection of suppliers that fall into these general categories is presented in the table below.
Major European producers of specialty paper chemicals—2018

Country
Companies supplying a wide range of chemicals to the paper industry
Kemira Finland
Solenis Switzerland
BIM Kemi Sweden
Companies with a wide product spectrum but offering only a limited
range of products to the paper industry
AkzoNobel Sweden
BASF Germany
DowDuPont Switzerland
Evonik Germany
Kurita Germany
Mare Italy
SNF Floeger France
Wacker-Chemie GmbH Germany
Smaller specialized companies offering a limited number of products to
the paper industry
Archroma Germany, Switzerland
AVEBE U.A. Netherlands
Elementis Specialties Netherlands
CP Kelco Finland
Kolb Distribution Ltd. Netherlands, Switzerland
Lamberti S.p.A. Italy
Münzing Chemie GmbH Germany
Protex International S.A.S. France
Major participants
A large number of companies supply specialty paper chemicals to the paper industry in Europe. Only a few provide a wide
spectrum of products covering both process specialty paper chemicals and performance additive specialty paper


chemicals, since numerous products and formulations exist that are often chemically unrelated. Therefore, many of the
large and medium-sized chemical companies will produce a compound or range of similar compounds that may find
applications in the paper industry, and then market the compound(s) to European papermakers. Only a few European
companies look at the paper industry as a whole and seek to develop products and services to meet the industry’s
requirements. Please use Adobe, Chrome, or Internet Explorer to read this file.
Generally, as one proceeds from the front end (wet end) of the paper machine through processing to the dry end, the
orientation of the chemical suppliers changes. The suppliers of the wet-end additives are highly service-oriented and very
mill-specific inContact Customer
their solutions Caresuch
to problems (customercare@ihs.com) if you
as pitch and microbial control, havedrainage
foaming, any questions.
and retention, and
sizing. Their products are almost always liquid formulations. On the other hand, web treatment products on the dry end
may include variations of products used in other industries, or they may be unique, specific products for the paper
industry. These products are also usually supplied as liquids. The paper industry is accustomed to storage and dilution of
liquid products, rather than handling and dissolving solids. Therefore, many suppliers of chemicals also supply handling
and dosing equipment. An overview of the product lines of the major European suppliers of specialty paper chemicals is
provided in the table below.


Major European suppliers of specialty paper chemicals—2018
Retention
Company Dry Pigment Pitch and Wet-
and Bleaching De- Deinking strength Dyes, binders/ control Pulping drainage strength Specialty
location Biocides Please use Adobe, Chrome, or Internet Explorer to read this file.Sizes
specialties foamers agents agents pigments coatings agents specialties aids resins coatings
Archroma X X X X X X X X X X X X
Switzerland
Avebe X X X X X
Netherlands, United
Kingdom
BASF X X X
Contact Customer CareX (customercare@ihs.com)
X X X
ifX you have
X X
any X
questions. X X
Germany
Buckman Laboratories X X X X X X
Belgium
Caffaro X X X X X
Italy
Cargill X X X
Belgium
CP Kelco X X
Finland
DowDuPont X X X X X X
Switzerland
Eka Chemical X
Germany, Sweden
Elementis X
Belgium
Emsland Stärke X X X
Germany
Evonik X X X X X
Germany
Kemira Chemicals X X X X X X X X X X X X X
Finland
Kolb Distribution Ltd X X X X
Netherlands, Switzer-
land
Kurita X X X X X X
Germany
Lamberti X X X X
Italy
Lamirsa X X X X
Spain
Mare X X X X X X
Italy
Münzing X X
Germany
Nalco Ecolab X X X X X
Belgium, United King-
dom
Protex International X X X X X X
France
SNF Floerger X
France
Solenis X X X X X X X X X X
Netherlands, United
KIngdom
SUEZ Water Technolo- X X
gies & Solutionsa
France, Belgium
Synthomer X
Finland, Germany,
United Kingdom
Wacker-Chemie X X X
Germany
a. Formerly known as GE Water and Process Technologies.


The ongoing concentration, consolidation, and geographic shift in the pulp and paper industry is affecting paper chemical
companies in particular. The paper chemical supply industry has been very fragmented and many acquisitions have led to
the emergence of a few global leaders with a broad range of products and services and a variety of specialists in certain
standalone segments. Market leaders continue to pursue an aggressive growth strategy through select acquisitions,
geographic expansion,Please use Adobe,
and diversification Chrome,
of product or Internet
portfolios. Explorer
The largest to read
participants this
in the file.
pulp and paper chemicals
industry are listed in the table below.
Estimated market size of the major pulp and paper chemical companies—2017
Millions of
Company euros Remarks
Kemira 1,500 Strong presence in pulping chemicals, paper process chemicals, and water treatment.
Solenis 1,000 Strong presence in paper process chemicals and water treatment.
BASF 900 Broad line of paper process chemicals and coating resins.
AkzoNobel 600 Strong presence in bleaching chemicals.
Ecolab Nalco 500 Broad line of chemicals for paper processing and water treatment.
Trinseo 450 Broad line of coating resins.
Solvay 375 Broad line of commodity pulping chemicals.
Archroma 350 Paper processing and coating chemicals.
Erco 350 Commodity chemicals for pulping.
Canexus 325 Commodity chemicals for pulping.
Buckman Laboratories 275 Service company with broad line of chemicals for paper processing and water treatment.
Evonik 225 Broad line of commodity and specialty pulping chemicals.
Mergers and acquisitions

This section provides an overview of significant mergers and acquisitions since 2010.
Major European acquisitions and divestments of specialty paper chemical companies since 2010
Year Company Remarks
2017 Ecolab-Nalco Minority share in MetGen OY, a producer of enzymes for the pulp and paper industry; Ecolab will become global dis-
tributor for these products.
2017 Kurita AkzoNobel’s wet-strength production plant in Ambes, France with an annual capacity of 25,000 metric tons for tissue and spe-
cialty papers was acquired
2017 Synthomer Bought BASF’s styrene-butadiene dispersion plant in Pischelsdorf, Austria for €30 million; 42 employees transferred to Syn-
thomer.
2016 Solenis Nopco Holding and related subsidiaries were acquired. Nopco achieved sales of about $60 million in 2015. Nopco produces
defoamers, collecting agents, deposit control agents, and insolubilizers for the European pulp and paper industry.
2015 Imerys BASF sold its global hydrous kaolin paper business, including a milling unit in Georgia, United States.
2015 Kemira For €153 million, AkzoNobel’s paper chemicals business was acquired. Six production sites with 350 emploees were included
in this deal. The bleaching business for pulping remained with AkzoNobel (Eka brand).
2015 Vertellus Dow Chemical divested its sodium borohydride business, including a plant in Elma, United States in late 2014.
2014 Peter Greven Stephenson Group (United Kingdom) sold its deinking chemicals (SERFAX brand) business to Peter Greven in September
2014.
2014 Kemira BASF sold its AKD emulsion business to Kemira for an undisclosed sum.
2014 Solenis Clayton, Dubilier & Rice bought Ashland’s water techologies business for $1.4 billion. The new company was renamed Solenis
and has about $1.7 billion in sales and about 3,000 employees.
2013 Kemira 3F Chimica was acquired by Kemira in September 2013. 3F produces polyacrylamide products as retention aids.
2013 Archroma SK Capital acquired Clariant’s textile, paper chemicals, and polymer emulsions business for 426 million Swiss francs. The
new company was named Achroma and has about 2,300 employees.
2011 Ingredion Corn Products International, Inc., a Westchester, Illinois–based company, acquired National Starch from AkzoNobel for $1.3
billion in cash. The company was renamed Ingredion in 2012.
2011 Yule Catto Completed the acquisition of PolymerLatex from TowerBrook Capital Partners in March 2011 to expand its emulsion polymer
business. PolymerLatex was integrated with the company’s Synthomer business.
2010 Chemigate BASF sold its starch business in Europe to Chemigate Oy, a company newly founded by former managers of the starch busi-
ness in Finland. The transaction comprises five production plants at four sites in Finland.
Sources: Press releases; annual reports. © 2018 IHS Markit


European suppliers of specialty paper chemicals approach R&D in different ways, related to how they developed their
Please
paper chemicals business. use chemical
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product base this file.
that must be adapted to the needs
of the paper industry. In contrast, smaller companies, aware of paper industry problems, perform extensive applied R&D
work for problem-solving by means of chemical additives.
The research emphasis varies depending on the different paper chemical groups. In the wet-end additives field, a vast
knowledge of water and colloid chemistry is required to develop mill-specific products and to predict possible interactions
among products used in papermaking or in further paper processing. Good examples are the interactions between
retention aids and sizes, or the application of silicone defoamers, which, while being highly effective, may form deposits
on the paper surface and inhibit printability. Within the dry end, interaction problems of chemical specialties are minor
and products are developed to provide the optimal required finish properties needed for the different paper grades.
R&D is carried out not only by the suppliers of specialty chemicals themselves but also through broad cooperation with
professional organizations in the paper field. Examples of renowned associations are Verein der Zellstoff und Papier
Chemiker und Ingenieure (ZELLCHEMING) and the Papiertechnische Stiftung (PTS), both in Germany; the Finnish Pulp
and Paper Research Institute; the Swedish Cellulose and Paper Research Foundation; and the Norwegian Pulp and Paper
Research Institute. Some innovative producers of specialty paper chemicals carry out joint research programs on special
topics with universities, and also sponsor students doing special research work. This has the additional advantage of
building up a source of highly qualified professionals with thorough basic technical experience as potential staff.
Papermaking in Europe has shifted from an empirical trial-and-error process to an increasingly researched and controlled
production technology. This applies especially to an improved understanding of the wet-end process and to high-speed
coating formulations. Large paper producers generally have quite a bit of knowledge and experience with wet-end
chemistry. Medium-sized or small papermaking companies often lack this understanding and rely heavily on the expertise
of their chemical suppliers. As a typical reaction to operating problems, small papermaking companies usually tend to
exceed the recommended dosage of chemical aids. This, apart from adding unnecessary costs, often has undesired
technical effects. Successful suppliers of wet-end additives have developed control devices to measure process parameters
that allow precisely the required addition level of chemical aids.
An example of this is KLK Oleo (formerly Dr. W. Kolb AG), which is experienced in solving problems derived from foam-
formation and entrained air. The company developed a sensor system to measure the air content of the process
suspensions online, providing the basis for automatic adjustment of the addition level of defoaming agents. The
continuous measurement of the critical process parameters and automatic control of the addition of chemical agents
allow the process parameters to be continuously kept within optimum ranges. For the paper producer, this means higher
and smoother production at constant quality and lower costs for chemicals. The installation of automatic process control
for specific steps of the papermaking process is expensive, and has mainly found application with large papermakers.
These examples are the result of intensive basic research to better understand the chemistry of papermaking.
However, most industrial research is oriented toward solving specific customer problems. Suppliers of large-volume
products often have pilot plants for paper coating that enable them to extrapolate conclusions to clients’ production lines.
This is typical of Dow Chemical, the major European supplier of coating binders, which operates a pilot coating plant in
Switzerland, enabling the company to run different products under variable operating conditions (e.g., coating speeds).
BASF and Avebe have pilot-scale paper machines to test their products prior to full-scale application. A pilot plant permits
a chemical supplier to build up a vast database on the performance of its products, minimizing the need to perform trials
at the client’s production line. This is a major issue for the large papermakers, since a trial at a large lightweight coated
(LWC) paper production machine may cost €20,000 per hour. Because of the high costs and risks involved, large
papermakers are very reluctant to test new products on their production lines. Therefore, the availability of a database of
successful trials in pilot plants or in smaller production plants is an important prerequisite for introducing new products.
Pilot paper machines emphasizing wet-end chemistry are scarce in the industry. Some of these pilot machines are
installed in technological paper associations in Scandinavia.


While the lack of references is a tremendous barrier to entry for new paper mills of a certain size in the specialty
chemicals field, receptivity is generally better among smaller papermakers. Being pan-European, the European paper
industry is very dynamic regarding the exchange of technical experience. This implies that successful—as well as
unsuccessful—product tests and introductions are readily known by large sectors of the industry. This is another reason
Please
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ensure smooth (andthis file. product trials at
successful)
customers’ paper mills.
Pilot plants are an advantage only for testing certain products, such as starches, sizes, and coating binders or coating
Contact
specialties. Suppliers Customer
of specialty Care
paper (customercare@ihs.com)
chemicals often test products at hiredif pilot
youplants
haveinany questions.
technical paper organizations
or universities. At the wet end, the results of pilot plant test runs, and even of individual mill tests, cannot typically be
extrapolated to other production lines, especially in the retention and drainage aids field. Standardized lab tests are often
used to pretest the effect of wet-end chemicals (like the Cobb test for evaluation of sizing results), but the final proof is
the result at individual paper mills.
Trends in R&D include the development of matched systems in wet-end chemistry that ensure an overall optimum
performance. A good example of this is combined retention and interfering substances control systems that also trap and
deposit onto the web-interfering substances such as pitch (reducing the need for pitch-control agents) and even
microorganisms (reducing the need for biocides).
Extensive R&D work is currently being carried out in Europe on enhanced wet-strength, replacement of polyethylene as
barrier-film in liquid packaging board (LPB) as well as fluorinated compounds as barrier-material in greaseproof papers and
boards.
Successful R&D in the specialty paper chemicals field in Europe implies—apart from a close cooperation with
customers—cooperation with producers of paper machines and auxiliary equipment in order to anticipate the needs of
the industry and to provide solutions to new problems. This is especially the case for the changing technology for
deinking, but it also implies the need for innovative thinking in many areas. For instance, the papermaking process can be
essentially seen as the manufacture of a bidimensional product or surface, and some research work has begun to develop a
whole range of products and systems that can be surface-applied (e.g., at the size press) instead of being added to the
stock, as is traditionally done. This research applies especially to wet- and dry-strength additives, sizes, and dyes. The trend
reflects the industry’s increasing attempts to reduce environmentally unfriendly and cost-ineffective handling of
chemical additives that are dissolved or dispersed in large quantities of water. Other areas of research include work on
improved chemicals and processes for closed-loop water circulation systems in paper mills, and coating formulations and
application systems for high-speed, cost-effective production of uncoated and coated color ink-jet papers.

The characteristics of the different specialty paper chemicals have a decisive influence on how chemical companies
approach their manufacturing policies. While high-unit-value products such as dyes or fluorescent whitening agents are
centrally manufactured and distributed all over Europe, large-volume products such as coating binders necessitate a
different approach.
The need to deliver large volumes of aqueous dispersions imposes a major logistical and transportation cost problem,
forcing producers to manufacture near the paper mills. Consequently, a company such as Trinseo, the major supplier of
styrene-butadiene latexes for the paper industry in Europe, has production facilities in various European countries.
A clear trend among smaller producers is to have a lean portfolio covering certain aspects of the pulp and papermaking
process. They accomplish this by technological cooperation with companies that manufacture chemicals that complement
their own products. Formal or informal cooperative manufacturing also aims to add value to natural products.
While large suppliers of specialty paper chemicals have a large raw material basis available in-house (e.g., Dow Chemical or
BASF with acrylic acid), small producers or formulators normally have to acquire key raw materials. This does not pose a
manufacturing problem for service companies, since they produce only a few active ingredients (in some cases, they will
even buy the active ingredients). Therefore, physical plant requirements are relatively small for the small producers or
formulators.


The production of some paper chemical specialties is reserved to large companies with sophisticated technical know-how.
Examples include biological products for biopulping, or enzymatic bleaching aids. The manufacture of this type of
specialty chemical is limited to companies with sufficient experience in bioengineering. While this experience typically
comes from nonchemical divisions of the companies, the manufacturing technology is far beyond the technical
Please use
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complex and offered in
the form of chemical systems and services, manufacturing and technology are gaining importance as barriers to would-be
competitors.
Marketing Contact Customer Care (customercare@ihs.com) if you have any questions.

The marketing efforts of specialty paper chemical suppliers in Europe are oriented to fulfilling the specific requirements
of the paper and board industry. Papermakers basically need to produce paper faster, more efficiently, more predictably, or
in a more specialized way. By using specialty paper chemicals, the industry aims to provide cost-effectiveness and improve
the reliability of the papermaking process and its controllability. Successful marketing of paper chemicals is based on
these themes, and chemical suppliers attempt to increase the acceptance of their products by emphasizing an optimum
effect-to-cost ratio. Highly effective specialties requiring low application levels may have a higher unit price. Ultimately,
the papermaker is interested in the cost of the function achieved by the chemical additive per ton of paper produced.
Sellers of specialty paper chemicals need to have a thorough technical knowledge in order to understand the problems of
customers—for example, by helping papermakers find the best addition point, method, and level to ensure an optimal
distribution and effect. By optimizing these parameters, synergistic effects may be achieved (i.e., modern retention
systems also help control pitch and other interfering substances). Purchasing attitudes, however, are generally different
depending on the customer’s size and the product characteristics.
Medium-sized or small paper mills generally lack wet-end chemistry knowledge. A common response to emerging
technical problems is to control them with an excess of chemical additives. Thus, this group of customers typically needs
assistance to solve emerging problems as well as to control the addition level of specialty chemicals.
Large paper corporations have a very distinct purchasing policy for their chemical products, depending on the magnitude
of their requirements. The cost-critical large-volume products (normally starches, pigments, fillers, and coating binders)
are acquired centrally by the purchasing department after discussion with the factories and the quality control
department. Agreements with suppliers are made on a longer-term basis (e.g., 12 to 18 months), at fixed prices for total
quantities, and require the suppliers to deliver on a short-term basis (e.g., in 24–48 hours) to the paper mill. Large paper
mills are introducing total quality management systems and suppliers must comply with the needs of these systems. The
essential purchasing criteria used to compare and evaluate suppliers is the cost-performance ratio. It is common practice
to have one or two main suppliers and an alternative supplier in order to prevent supply problems. For the smaller-volume
products (typically including specialty chemicals), the central purchasing departments of large paper corporations have a
more coordination- and administration-oriented operation. The individual mill managers are directly involved in the
purchasing process since the technical and performance criteria must be met.
In general terms, suppliers of large-volume chemical products (e.g., coating binders) deal directly with purchasing
departments, while suppliers of lower-volume specialties like sizing agents or defoaming aids are in closer contact with
the production department of individual paper mills.
The additional service package related to the logistics and delivery of chemical supplies has rapidly gained importance in
Europe. Service ranges from automating the logistics to supplying products in user-friendly containers. Chemical storage
tanks with level controls for solutions/dispersions are now located at the paper mill and linked via telemetry with the
supplier, triggering automatic delivery of a product as soon as a minimum inventory level is reached. The handling of
pallets, drums, semibulk containers, and big bags is avoided through the use of closed, standardized (generally
proprietary) container systems that additionally have the advantage of no direct handling of chemicals since the
containers can be connected directly to the dispersion process or to additional control systems. Nalco is one of the leading
companies in implementing these kinds of concepts and has introduced its Porta-Feed container delivery system to the
paper industry in Europe.


Leading suppliers of specialty paper chemicals have set up a logistical network in most key paper-producing countries.
This includes storage facilities, in order to ensure prompt delivery, as well as a local service infrastructure. The sales force
often consists of technical personnel who handle both commercial aspects of a sale and emerging technical matters.
Please corporations
For most of the large chemical use Adobe,that Chrome, orpaper
supply the Internet Explorer
industry, to read
the structure of this file.
the respective marketing
organizations for the various paper chemicals reflects a compromise between sales, moving products into as many
markets and applications as possible, and a service approach and commitment to the needs of the paper industry.
The pulp and paper industry

Contact is continuing
Customer Careto(customercare@ihs.com)
consolidate purchasing operations; newhave
if you marketing organizations for paper
any questions.
chemicals are generated to concentrate on corporate account management, product management, and market
communications.

Since the paper chemicals industry is essentially mature, competition among suppliers is strong in all areas. There is no
typical cost structure for the specialty paper chemicals industry because of the wide range of product types offered, the
varying degrees of technical service supplied, the different costs of sales and marketing (depending on whether the sales
force is totally dedicated to this market or also covers other industries), the varying transportation costs, and if the same
products that are used as paper specialties are also used in other industries. In addition, significantly different levels of
R&D are required, depending on whether products are mature, are newer and still evolving, or are products that require
adaptation to specific applications. Usually, 20–35% of the total staff of a specialty paper chemicals operation are R&D and
technical service personnel.
In Europe, specialty paper chemicals are produced:
• As standardized high-volume products such as polyacrylamides, starches, and latex polymers by large, diversified
chemical companies.
• As specialty chemicals or formulations such as various processing aids that are tailor-made to individual customers by
large, diversified chemical companies or a variety of smaller, specialized, and sometimes family-owned companies.
• With a higher raw material component in the cost structure. In general, the larger-volume, standard products, such as
starches and nonspecialty coating raw materials, of which a number of suppliers offer equivalent products, will have a
higher raw material component in their cost structures, while other components such as R&D and technical service will
be relatively small. Critical success factors for the group of high-volume specialty paper chemicals such as latex coating
binders and polyacrylamides are cost-leadership and proximity to the mill in order to minimize transportation cost and
delivery time.
Special low-volume processing aids such as retention and drainage aids, defoamers, biocides/slimicides, and pitch-control
agents need to be adjusted to the production program of the individual paper machine and are therefore also marketable
by smaller specialist companies. Expenditures for R&D and service become important profit components. R&D costs for
innovative companies can be on the order of 10% of turnover, and may even be significantly higher if intensive trials are
undertaken to introduce new products.
The wet-end process is very service-intensive for a specialty paper chemicals supplier. For high-volume products such as
polyacrylamides or bentonites, profit margins (EBIT) in the range of 5–15% can be achieved, while multicomponent
retention and drainage aids can generate 15–20%. For high-volume latex binders, the industry has reacted to unfavorable
profit margins caused by declining markets for coated papers, as well as rising raw materials and energy costs, by acquiring,
restructuring, and closing plants.
Government regulations affecting the paper and the paper chemicals businesses in Europe are mostly related to increasing
environmental protection and decreasing human toxicological effects. The world’s first multinational environmental
labeling scheme affecting the paper industry was initiated over 15 years ago when officials from Norway, Sweden,


Denmark, and Finland implemented the Nordic Ecolabeling system for products, including papers, that cause the least
damage to the environment during their life cycles. The criteria specific to paper chemicals include chelating agents,
slimicides, surfactants, defoamers, bleaching chemicals, and polymers. There are bans on alkylphenol ethoxylates used in
process and functional chemicals, and chlorine gas is banned in pulp bleaching. Defoamers and deinking agents must be
readily degradable andPlease use
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not be potentially Internet Explorer
bioaccumulative. to also
There are readstrict
thislimits
file. of less than one
kilogram of chelating agents per ton of pulp. Limitations on residual monomers in polymers used in paper coatings,
retention aids, wet- and dry-strength resins, and water treatment are significant. With the exception of acrylamide,
residual monomers in these functional and process chemicals are not to exceed 100 parts per million, based on solids
Contact
content. Acrylamide Customer
is the Care (customercare@ihs.com)
exception because if you
polyacrylamides have been widely usedhave any questions.
in papermaking and water
treatment for over 40 years without any known harmful effects.
Biocides
Biocidal products are tightly regulated. The Biocidal Products Directive 98/8/EC (BPD) for the approval of active
substances in biocidal products entered into force on 14 May 2000 and was replaced by the Biocidal Product Regulation EU
528/2012 (BPR), which entered into force in September 2013.
The BPR encompasses a large review program of all existing biocides, while at the same time authorizing new biocides
being placed on the market. Under the BPR, the classification of biocides is broken down into four main categories
comprising 22 product types or application categories.
• Disinfectants for home and industrial use.
• Preservatives for manufactured and natural products.
• Pest control products.
• Other biocidal products such as antifouling products and embalming fluids.
The system of approval requires two regulatory submissions before a biocidal product can be marketed, first on the active
substances, and second on the formulated biocidal products. Each submission requires a dossier per product type that
contains information on its biocidal efficacy, toxicological, and ecotoxicological properties, etc. Active substances are
divided into:
• New active substances that cannot be placed on the market for biocidal purposes unless they are included in Annex I of
the BPR. Once the decision has been made to include an active substance in Annex I there is a two-year period to allow
for the submission of dossiers to authorize products containing the active ingredient.
• Existing active substances are evaluated in a review program, according to Regulation 1062/2014.
The total cost of testing and registering a biocide that will be used in applications where significant human exposure is
likely has been rising. It costs €3–5 million for toxicology, ecotoxicology, and physical testing of active biocides to register
them for use, according to the BPR (Europe), Fungicide, Insecticide and Rodenticide Act (FIFRA) (United States), or Pest
Control Products Act (PCPA) (Canada). For an application without human exposure (e.g., for cooling towers), testing and
registration costs can be as low as €1–1.5 million for the active ingredient. The EU evaluation alone costs €150,000.
Registration of a simple formulation with one active ingredient costs about €250,000. This figure is based on the
assumption that one can obtain a letter of access from the active ingredient producers and mutual recognition in all EU
countries. The total cost of registration, however, can be as high as half a million euros and two years of manpower
(covering paperwork, regulations, and lab time) per active ingredient if all the information has to be generated from
scratch. Under the BPR, the total cost to the industry is estimated at €1–2 billion. Synergy among actives in a blend can be
costly. Should a new product blend create a synergistic effect (where the combined effect is greater than the sum of the
components), then ecotoxicology testing is required to ensure that the synergy does not extend to the risks associated
with the blend.


Initially, the BPD provided a 10-year period to transition from existing regulatory systems to the new system. However, it
became evident that this time period was insufficient. Since the BPD initially entered into force in mid-2000, more than
two-thirds of approximately 1,000 biocide active substances have disappeared from the market. Many suppliers refrained
from the lengthy and costly registration procedure of their products and mixtures. No company in the biocides field is
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Bleaching chemicals
The usual chemical pulping methods in Europe are the (basic) sulfate process (market share >90%) and the (acid) sulfite
Contact
process. The sulfate Customer
process gives highCare
yields(customercare@ihs.com) if you
and strong fibers but may produce odorhave any During
nuisances. questions.
production and
further processing of bleached chemical pulps, organic halogen compounds (measured as AOX) are released in mill
effluents. Modern bleaching methods such as chlorine dioxide, hydrogen peroxide, sodium hydrosulfite, and oxygen
guarantee that the low AOX values demanded by legislation are achieved.
Chelating agents
Prior to 2004, the situation regarding chelating agents in Europe was marked by an uncertain future for a common
European risk reduction strategy following an extensive risk assessment report on ethlylenediaminetetraacetic acid
(EDTA). The debate on the environmental aspects of EDTA was initially based on its low biodegradability and the limited
availability of scientific assessment on environmental risks. In Germany, the discussion led to a self-imposed restriction
on the consuming industries, which led to an average 20% decrease in EDTA consumption. In the rest of Europe,
consumption continued to increase. To harmonize with the rest of the European Union, a common risk reduction strategy
was envisaged and German authorities were in charge of proposing a common policy. This was done in concert with EDTA
producers and the consuming industries. The final Risk Assessment Reports of the European Union on EDTA and its
tetrasodium salt were published in 2004, followed in 2006 by a Commission Recommendation and Communication on
the results of the risk evaluation and risk reduction strategies for these substances. The Risk Assessment Reports
confirmed the low toxicity profile of EDTA. There is no concern for human health and a high no-effect level was
established for EDTA in the aqueous environment.
As a result of very conservative worst-case assumptions, the reports indicate a need to limit the risks for the local aqueous
environment from potential high-effluent concentrations (from point sources) in four application areas. At the same
time, extensive monitoring data demonstrated that the actual concentrations in the surface waters were much lower than
estimated from the theoretical worst-case exposure scenarios and the Scientific Committee on Toxicity, Ecotoxicity and
the Environment (CSTEE) confirmed that the exposure assessment of the Risk Assessment Report leading to the
conclusion of risk was controversial, probably overestimated, and not in agreement with most experimental monitoring
data. The European Commission made recommendations for limiting the potential environmental risk of EDTA.
In summary, there will be no restrictions on the marketing and use of EDTA and each member state is free to regulate its
own emission levels. Nevertheless, the report states that, regarding the environment, there is a need to limit the risks for
aquatic organisms because of the high releases resulting from the use of EDTA in industrial detergents, by paper mills, by
circuit board manufacturers, and during recovery of EDTA-containing wastes. Already-applied risk reduction measures are
to be taken into account. All member states have to develop national environmental quality standards for EDTA in river
basins based on the high predicted-no-effect-concentration (PNEC) that was established. Extensive monitoring
demonstrated that concentrations in large rivers are already 50–100 times below the established PNEC. Under the
Integrated Pollution Prevention and Control (IPPC) Directive, conditions will be imposed on large EDTA emissions (point
sources) and the application of best available techniquesMajor producers believe that the volume of EDTA sold will not be
significantly influenced by regulations alone. The industry has also pointed to negative economic and social consequences
of a potential reduction of EDTA use.
Nitrilotriacetic acid (NTA) has also been under evaluation by the European authorities. The environmental part of the
European Risk Assessment Report was published in 2005. It concludes that trisodium NTA is readily biodegradable and
there is no concern for the environment. Regarding the human health part, scientific data point out that thresholds for
the effects of NTA in mammalian systems are 105–106 times greater than the possible maximum human exposure
resulting from the low levels of NTA that are known to occur in the environment. Despite that, there is growing evidence
that the European Committee for the Classification and Labeling of Dangerous Substances has already decided to classify


and label trisodium NTA for possible carcinogenic effects in category 3 with an R40 risk phrase (limited evidence of a
carcinogenic effect) with a more relaxed specific concentration limit of 5%, reflecting the low potency for its carcinogenic
effects. This means that formulations with a low NTA content do not need to be classified and labeled with the R40 risk
phrase. Member countries will be responsible for the local implementation of the community regulation.
Wet-strength resins
Emission standards are very strict in most European countries. Mill effluent discharges are being taxed based on
parameters like AOX, chemical oxygen demand (COD), and biological oxygen demand (BOD). Epichlorohydrin-polyamide
Contact Customer
resins used as wet-strength Care
additives may (customercare@ihs.com)
release if you wet-strength
AOX. New developments include have any questions.
resins with very low AOX
content. Starch is responsible for most of the COD and BOD in the effluent.
The mills have introduced changes in processes and chemical additives and added wastewater treatment plants to comply
with the legislation. Some mills have introduced closed water loops, so there is practically zero emission to aquatic
systems.

External factors affecting the paper industries in Europe are listed below.
• Consolidation in mill ownership.
• Mill specialization resulting in a narrower line of paper products at customer mills.
• High fixed capital costs.
• Increasing energy and labor costs.
• Increased automation in mills, including increasing online control of critical parameters like retention, foam formation,
color, and levels of interfering substances, as well as automated dosing and metering of specialty process chemicals.
• New plants and capacity expansions using state-of-the-art machinery and technology (requiring new chemical additives
or lower dosing levels).
• Increasing transportation costs, which in turn promote the use of lighter-weight paper
• Increasing demand for high-quality and specialty papers such as fine and coated papers in color applications for digital
printers (ink-jet and laser printer technology).
• A growing need to be flexible in the type of raw material (fiber) used while maintaining end-product quality.
• Vendor consolidation by the paper mills, whereby a single paper chemical supplier needs to provide a broad, well-
adjusted range of products, immediate service, and global reach (customer bonding via service).
• High environmental awareness and constant pressure from regulations (protecting air, water, and ground) requiring:
• Increased recycling of wastepaper.
• Closed-loop water circuits.
• Reduction of emission levels for chemicals and by-products, especially in effluents (biological and chemical oxygen
demand [BOD, COD], toxicity).
The European pulp and paper industry is also experiencing some internal evolutionary changes that are shaping its
regional characteristics and determining its direction. Ultimately, these trends are driven by economic considerations.


Achieving profitability in papermaking—under increasing competitive pressure—is possible only by cutting costs, which
can be done by:
• Moving production to countries with lower labor and utility costs. A lot of central and eastern European countries
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(Poland, Romania etc.) fulfill use
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• Using a higher proportion of less expensive fiber, like recycled fiber or thermomechanical pulp.
• Using a higher proportion

Contact of cheap fillers
Customer Careand extenders, thereby reducing the
(customercare@ihs.com) proportion
if you have anyof more expensive fiber. In
questions.
Europe, papermakers can produce marketable sheets with more than 20% ash content.
• Using a higher proportion of cheap coating pigments (like ground calcium carbonate), thus reducing the proportion of
more expensive pigments like china clay or titanium dioxide.
• Using less freshwater and producing less effluent in order to reduce charges. Over the last 40 years, water use in pulp and
paper production has decreased from 120 cubic meters per ton of paper to about 9 cubic meters. The need to boost the
water efficiency of pulp and paper manufacturers has been a major reason why some leading chemical companies have
been merging or closely linking their paper chemical and water treatment chemicals operations.
• Reducing the amount of paper chemicals (instead of adding more to the papermaking process in order to cope with
quality or runnability problems) by using an optimal package from a single supplier of wet-end chemicals, sizes, and
coatings polymers, together with new sensors and automated metering units that allow for more efficient dosage of
chemicals.
• Reducing energy costs (e.g., for paper web drying).
• Reducing labor costs (e.g., by using easy-to-make-up systems and by more automation).
• Increasing production speed by using more effective retention and drainage systems.
Additional advantages can be achieved by increasing the productivity of existing equipment, increasing uptime,
decreasing off-grade production, and making more paper with less fiber and labor costs. Acquisitions, mergers, and
partnerships are also being used to facilitate mill optimization by spreading given grades across more machines.
Papermakers will look to their older machines to increase production speeds by rebuilding the wet-end part or adding top
wires for dewatering in order to get a higher-quality sheet with a lower basis weight at a higher machine speed. Online and
in-sensor measurement technologies will also help raise paper machine speeds beyond 2,000 meters per minute.
The roots of paper chemistry span hundreds of years, but major developments such as neutral sizing, the use of wet-
strength resins, and synthetic retention aids took place during the decades following World War II. At this point, paper
chemistry was more of an art than a science. In the 1960s, the development of high-molecular-weight synthetic retention
aids took place, causing a one-order-of-magnitude increase in speed. The scientific basis was laid during the 1970s, when
papermakers discovered the concept of zeta-potential. The 1980s brought the development of alkaline papermaking
systems, while microparticulate systems conquered the markets in the 1990s. The theoretical foundation for
polyelectrolyte absorption theory was a scientific cornerstone, which was supplemented with a firmer understanding of
wood chemistry and its interplay with additives during the 1990s. Several trends in the European pulp and paper industry
that impact the use of specialty paper chemicals are discussed in the following paragraphs.
The move toward neutral or basic sizing to replace the traditional acidic sizing using rosin has a number of advantages.
Since the fibers keep their cohesiveness and strength, it is possible to use low-cost fillers. This is particularly important
because greater use of a cheap and native European filler (such as calcium carbonate) allows European papermakers to
make up some of the disadvantages of high wood and pulp costs. The filler content (by weight) in wood-free paper in
Europe ranges between 20% and 30%—much higher than the filler levels prevailing in the United States. The paper made
by alkaline processing has improved shelf life, does not tend to yellow, and is suitable for high-quality papers. It is also
environmentally more acceptable. As a result of this trend to alkaline papermaking, there have been opportunities for


new sizes, especially reactive sizes, as well as for other specialty paper chemicals that are more compatible with the
neutral characteristics of the paper than are existing chemicals.
The reduction in weight of printing and magazine papers without loss of properties is a trend that will continue. It creates
Please
a need for new chemicals usecoating
and new Adobe, Chrome,that
formulations or Internet
allow millsExplorer
to producetohigh-strength
read this file.
paper and still maintain
the low weight. These chemicals must also be compatible with high-speed coating processes. Manufacturers of paper
chemicals are doing substantial pilot plant work to find the right formulations for use in these high-speed machines.
The above trends have had

Contact a dramatic Care
Customer effect on the use of fillers and pigments.
(customercare@ihs.com) if Twenty
you haveyears ago,questions.
any natural calcium
carbonate accounted for less than 1% of coating pigments used in Europe. Ten years later, it was less than 10%, and today it
accounts for about 50%. It is now used extensively for all coated grades, including lightweight coated (LWC) paper for
offset printing. Talc is now used extensively as a coating pigment in LWC rotogravure and in coated offset grades with high
calcium carbonate levels. There is also an increasing interest in other locally available pigments which, if successfully
adopted, will have major implications for the other coating pigments and coating technology. Precipitated calcium
carbonate (PCC) has become more important over time as a coating pigment to substitute for, or extend the use of,
expensive titanium dioxide.
Opportunities exist for paper chemical manufacturers in the field of coated paper such as LWC paper. For example, no two
European producers of LWC paper, even though they may be competitors in the European and export markets, use the
same coating formulations. Therefore, a new and better formulation is likely to be accepted by the paper industry if it can
be proven that it has advantages over the multitude of existing coating formulations.
Global use of recycled fiber is being prompted by various factors such as the price competitiveness of secondary fiber
against virgin fiber, and the strength of the global environmental movement, which exerts direct and indirect influence
on paper recovery in many countries. In Europe, about 60% of fibers come from recycled wastepaper, mainly because of
the limited supply of low-cost virgin fiber and environmental regulations that place greater importance on minimizing
wastage. However, the increased use of recycled fibers that inherently have poorer strength than virgin fibers drives
growth for specialty paper chemicals such as wet- and dry-strength additives, sizes, retention and drainage control aids,
and bleaching and deinking specialties, as well as a range of water treatment chemicals designed to remove the significant
quantities of impurities and contaminants that accompany the increased recycled fiber use.
The importance of electronic print processes is continuously increasing, especially for color and photorealistic printing at
home, in the office, and for commercial wide-format graphic arts purposes, by ink-jet printing technologies, and color
laser printers and digital printing presses based on electrophotography. The quality of ink-jet printing is influenced by the
chemical and physical properties of the ink and by the properties of the paper sizing and coating. The interactions of ink
and paper control optical density, print gloss, brilliance, and resolution of the image. These interactions are influenced by
interface charges, wettability, absorption phenomena, and chromatographic effects separating the dye from the fluid
phase. Demand for paper used in ink-jet papers has increased by more than 10% annually as color ink-jet printers have
become the preferred digital printers at home and in the office. As affordable printers grow wider and faster and provide
better image quality, users want higher-quality paper for color and graphic arts prints. Most ink-jet papers sold today use
uncoated, multipurpose papers for color printing that are either bond or surface-sized grades. Coated papers are preferable
for photorealistic printing.
The fiber sources used for European papermaking have also changed. Of particular importance is the use of fast-growing
eucalyptus (imported as pulp from places like Brazil or South Africa or being planted in Portugal and Spain. They are
replacing native European softwoods to some extent. The cost advantage of eucalyptus-based pulp is the short forest
cycle—while eucalyptus in Brazil can be harvested after 15 to 20 years, it takes about 70–80 years to grow the same
amount of biomass in Finland. The expensive Scandinavian long-fiber pulps and inexpensive eucalyptus-based short-fiber
pulps could complement each other to render an optimal raw material mix in terms of cost-performance. Use of
thermomechanical pulp (TMP) and chemithermomechanical chemical (CTMP) is gaining in importance. This change in
fiber raw material impacts retention technologies as well as requirements for better control of interfering substances.
Closed-loop water circulation systems to reduce freshwater intake as well as effluent emissions imply a higher load of
interfering substances in the circuit. These could be chemical products that could deposit on the web, causing holes and


weakening the web structure, or interfering with other additives and reducing their effectiveness. These interfering
substances also deteriorate the quality of the effluents as measured by parameters like biological oxygen demand (BOD),
chemical oxygen demand (COD), or content of specific toxic substances. Reducing these parameters allows paper mills to
meet effluent discharge limits and to lower treatment costs, and control of these interfering substances by means of
Please useimportant.
additives is therefore increasingly Adobe, Closed
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water Internet
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tend to stimulate this file.
biological activity, which must
be controlled by means of biocides and slimicides. Although this biological activity is partly offset by the higher average
water temperatures in the closed circuits, corrosion problems will increase.
Contact
The wet-end system Customer synergistic
is a complicated Care (customercare@ihs.com) if youwithin
group of interacting components havetheany questions.
context of the entire paper
machine. Wet-end management needs to take into account higher recycled fiber content and higher filler content, more
closed water systems and less freshwater usage, higher machine speeds, and stricter environmental demands. Wet-end
chemistry affects not only paper properties but also machine efficiencies and cleanliness, environmental discharges, and
cost of operation.
Wet-end optimization will change in the future—growth in retention aids and especially drainage aids is expected to be
greater than that of almost any other chemical additive in the wet end. This will be caused by increased machine speeds,
which reached 2,000 meters per minute for printing/writing and newsprint grades; increased use of finer fillers in alkaline
papermaking; and increased recycled fiber content. Effective retention and drainage aids can greatly improve dewatering
of the web and increase the amount of fine fibers and filler particles retained in the paper web. This also improves the two-
sidedness of the paper sheet. The trend toward multicomponent retention systems is continuing as a result of enhanced
formation and draining effects using colloidal-based, microparticle products. Paper mills and paper chemical companies
are trying to increase synergies between retention/drainage aids, sizing chemicals, and coating binders. When better
performance in the wet end is achieved, less costly latexes and coating additives can be used.
The requirement for paper machines with faster speeds is also affecting the types of chemicals used, as is the automation
of some parts of the papermaking process. For example, in the dyeing process, continuous, automatic dosing of chemicals
has replaced the batch addition of dyes, and with it the dyemaster, a traditional figure in the industry, has disappeared. The
paper industry must now rely on dosing machines and uniform dyes to obtain the required paper qualities. The same
applies to retention control, foam control, and control of interfering substances. Web widths of paper and coating
machines are not expected to increase significantly in the future; however, production capacities are expected to increase
primarily via higher speeds. Offline coating machines already reach speeds of more than 2,000 meters per minute, while
levels of more than 3,000 meters per minute are being achieved on pilot coating machines.
The paper chemicals industry has responded to the mergers and acquisitions in the paper industry with its own
consolidations (mergers and acquisitions, joint ventures, and partnerships that are regionally complementary or a
portfolio fit), investments in R&D and production capacities, and cost reductions. Europe-based paper chemical
companies are also concentrating on developing their businesses in North America and Asia Pacific, as well as in Eastern
Europe.
Papermakers, trying to improve mill efficiency and cut overhead, are shifting purchasing decisions from individual mills to
the corporate office and reducing the number of suppliers. Big suppliers want large sales of many products with low sales
costs and no competition. If a mill is lined up with a single-source supplier, it can no longer choose. As for the paper
company, changes are being driven by cost reduction needs, which have changed the role of the suppliers dramatically.
Many paper mills have downsized to the point that they have limited resources to run trials or monitor chemicals. In an
effort to reduce costs, several large papermaking companies are moving toward single sourcing or chemical management
programs with suppliers, while the incentive for the supplier is usually increased sales volume. One outcome of this trend
is the development of strategic alliances that more closely link the customer and supplier. Some larger, multimill paper
companies seeking to remain open to new products are naming a principal supplier as “category manager” and continuing
to use products from multiple companies. As this trend develops, the supplier will assume responsibility for control and
cost-efficiency of papermaking chemicals for a set fee. The supplier’s role as the de facto technical service/support staff in
the paper mill is particularly important as mills continue to downsize their staffs. This trend is very pronounced in the
United States and Canada, but not in mills in northern or central Europe.
Trends in the European paper chemicals market include:


• Paper strength will be an increasingly important concern as mills use more recycled wastepaper, which will generate
more demand for internal strength aids.
• European papermakers use ECF bleaching as a standard process. TCF bleaching has proven to be less successful than
expected. Please use Adobe, Chrome, or Internet Explorer to read this file.
• All paper chemicals have been developed for greater purity, depending on the legislation. Present products contain only
minute amounts of chemical impurities, AOX, and organic volatiles.
• Chemicals chosen for separate functions can degrade each other’s performance. The wet-end chemicals concept is
therefore developing rapidly. A typical solution consists of a series of wet-end chemicals that are designed to work
together—cationic polymers, starches, strength agents, anionic trash collectors, sizing agents, and fillers. All of these
need to perform together in a manner that is optimal in terms of both cost and quality.
• Papermakers are trying to improve paper properties such as brightness, gloss, opacity, printability, runnability, and
uniformity in cross and machine direction.
In search of improved profitability, many producers of printing papers are converting their paper machines to board. The
change to alkaline sizing and the increased use of fillers and secondary fibers has especially increased the consumption of
microparticle retention systems. They are popular in producing uncoated wood-free papers. As paper machine speeds
increase, filler retention and paper formation become more difficult, which in turn leads to greater demand for
microparticle retention aids.
The use of strength additives is also increasing to make up for the loss in sheet strength caused by a higher content of
recycled fibers. Starch continues to hold the major share of the dry-strength market because of its lower cost comparison
with synthetic resins. One drawback of the use of starch is its addition to biological oxygen demand in the mill effluent
stream. Alternative chemicals used are therefore polyacrylamides, CMC, melamine formaldehyde resins and
polyvinylamine (PVAm). For uncoated ink-jet papers, alkyl ketene dimers (AKD) are said to provide better print density
and resistance to wicking, while alkenyl succinic anhydride– (ASA-) sized papers assist in ink drying. For high-speed, high-
volume laser printers, clean papers that do not lead to dusting and debris buildup inside a printer are needed. Paper edge
dusting can be minimized by using nonabrasive filler pigments such as PCC and filler pigments with a small particle size
and a narrow size distribution together with adequate and proper sizing. The increased demand for ink-jet printing in the
commercial office environment will expand the demand for low-cost, high-performance uncoated ink-jet paper, which
should look and feel like plain paper and also should be printable on both sides. Coated paper requirements are
runnability, printability, and appearance. Regarding shade, blue-white is preferred, especially for color printing. For coated
ink-jet papers, the coating has to fix anionic dyes or small pigment particles which resemble the colorants in ink-jet inks
on the surface and capture the water in the bulk of the paper. The ink-jet coating contains three major ingredients: silica
pigment, polyvinyl alcohol binder, and a cationic polymer. However, these coatings are very expensive and exhibit poor
rheological properties in solids contents higher than 20%.
The specialty paper chemicals market tracks growth in paper production and the fate of the paper chemicals industry is
closely linked to the structure of—and changes in—the pulp and paper industry. Bundling of purchases is a key trend for
the consolidated paper companies, and by their sheer size they have considerable purchasing and pricing power. This in
turn puts pressure on suppliers to consolidate and broaden their offerings to approximate one-stop shopping. Raw
material suppliers have begun to manage production in line with demand in order to obtain some leverage. The paper
industry has been unwilling to pay for most innovations from chemical suppliers other than cost reduction measures.
Consolidation and globalization have become more common in the specialty paper chemicals industry. In order to meet
key demands from their globally operating customers, the large specialty paper chemical companies:
• Have enlarged their product portfolio, mainly through acquisitions of smaller specialized companies, in order to supply
all or almost all specialty paper chemicals from one source.


• Have increased their global reach, mainly in North America and Asia (preferably China), through acquisitions, joint
ventures, or the construction of new plants.
• Have started up new, larger production plants with improved efficiency and occasionally new production processes in
order to remain cost-competitive.

Suppliers of specialty chemicals to the paper industry are being affected not only by changes in the technology of
papermaking, Contact
changes inCustomer
demand amongCare (customercare@ihs.com)
different if you have
grades of paper, and increasingly anyenvironmental
stringent questions. and health
regulations, but also by the specialization of paper producers through divestments, mergers and acquisitions, and the
development of global paper companies. This results in two types of clients.
• Global companies with huge production sites on every continent demanding global delivery as well as service. Owing to
their size, they are of high interest to paper chemical suppliers.
• Regional specialists, which work in a specific niche (board, tissue, graphic, etc.) and operate small to mid-sized
production volumes. They offer opportunities as they require more service while their consumption is lower.
The internationalization of the paper industry means viewing the specialty chemicals business as regional and pan-
European rather than continental. It means a new need for global capabilities in marketing and technical service, and
reliability and speed of supply that is of maximum importance when supplying specialty chemicals to the paper industry.
In response to these conditions, some specialty chemical companies have reorganized while others are proceeding with
investments in an effort to broaden product and geographic reach.
In some paper chemical businesses, companies are trying to offset slowing demand by repackaging chemicals and services.
Paper mills want fewer suppliers offering a broad range of products and they want these suppliers to be able to offer the
same product in every market. They are also seeking products and services that give them bulk discounts. Paper chemical
producers team up with other companies with complementary offerings to provide a complete package to their
customers. Their challenge is to convince paper mills that they should not just look for the cheapest product but also for
value added, quality, process speed, and the runnability of their paper machines.
The cost structures of the main resources consumed for papermaking—fiber, water, and energy—are relatively fixed.
Compared with these, the purchase of specialty paper chemicals offers papermakers some flexibility in discussing
cost/price conditions. This makes price discussion concerning chemicals for the chemical suppliers difficult.
In general, the European paper industry must operate at over 90% of capacity in order to be profitable. Each additional
percentage of capacity utilization represents a substantial additional profit to producers. When capacity utilization drops
below 90%, paper producers must rely on a number of factors to survive. These include access to financing through
mergers or buyouts, better marketing, and improved technology. Paper companies with a wider range of paper grades do
better, since rarely does a business cycle affect all grades equally, so that demand for some grades will continue to grow
and cushion the impact of declining demand for other paper types.
The relationship between paper companies and paper chemical suppliers is changing. Paper mills prefer close partnerships
with only a few carefully selected suppliers. This cooperation includes joint problem-solving, joint R&D regarding overall
cost structure and end-user requirements as well as confidential agreements, long-term R&D programs and purchasing
contracts, and openness to strategic objectives.
Factors common to all paper chemical companies in contributing toward success in the specialty paper chemicals business
are as follows:
• Reliability of supply and ability to supply on short notice.
• Reliability of product quality.


• Technical service in solving specific chemical and process-related problems at the paper machine and the coating line
(customer bonding by service).
• Ability to develop new formulations and test them in the company’s own facilities.
• Ability to provide ecotoxicological and human-toxicological data for the offered products.
• Competitive price.
• Strategic alliances and acquisitions.
While these key factors for success are common to most paper chemicals, their order of importance is specific to specific
chemicals. For example, in commodities such as wet-strength additives, coating resins, or dyes, price is more important
than technical service. On the other hand, technical service is of the greatest importance for wet-end/process chemicals
(when supplying biocides or defoamers, for example). In the case of new products such as sizes for digital papers and
coatings for ink-jet papers, technical service extends to providing potential customers (which may be considering the
production of this paper) with technical and patent information on the product.
The ability to conduct pilot tests on the performance of paper chemicals is important in developing a database to
demonstrate the advantages of a new product. Without this information, it is unlikely that a paper mill would be willing
to experiment with new chemicals and formulations. Because of the need to keep expensive paper machines operating, a
paper producer will rarely experiment with a change in an operating condition unless its performance has been well-
documented. Therefore, the burden of proof is on the seller of the chemicals. The chemical supplier, therefore, must
conduct research to develop the data necessary to convince the paper mills to try a new formulation. A typical example is
the work being done by chemical suppliers with high-speed paper machines to find defoamer formulations and coating
compositions suitable for high-speed operations.
In reality, producers of new paper chemicals often find themselves trapped in a vicious cycle: paper mills will not purchase
their products unless they have been commercially proven, but this commercial experience is difficult to develop because
paper mills do not want to be the first site experimenting with a new product. Well-established companies have a better
chance of convincing paper mills to adopt new products by force of their reputation.
In a few instances, paper mills will require a new product, and from time to time they will cooperate with a chemical
manufacturer in the joint development of a product. Here again the paper mills are more likely to choose a well-
established company with a solid reputation in the industry and with a proven track record for product development.
Since smaller paper mills do little or no research in the area of processing chemicals and paper additives, they are
dependent on the experience of companies supplying chemicals for their application. Suppliers must therefore provide
adequate technical assistance and be available on short notice should problems arise during production. They should also
address customer needs with a systems approach rather than with individual products by offering a range of related
products. This includes supplying dosing and process control devices and being knowledgeable about possible
consequences and effects of the use of the offered products. Cost-performance advantages are the main arguments that
win customers over to acceptance of a systems approach.
The overall reliability of supply is generally the most critical factor for success in the specialty paper chemicals business. A
company that has developed a reputation for reliability, timely deliveries, and flexibility in supplying clients, will have a
strong position in the market. This acts as a barrier to entry for newcomers, as it takes a considerable amount of time to
develop this reputation. Reliability of product quality (namely product composition) is important and suppliers exert
substantial effort to ensure that this is achieved.
Advertisement of specialty paper chemicals is limited to trade journals and does not play a major role in marketing
products. Direct customer contact remains the major marketing tool. In this context, the ability of the sales and technical
staff to develop trust with the customer is of great importance. This trust is developed through continuous contacts, good


response to inquiries and problems the customer may have, and good knowledge of the industry, as well as knowledgeable
support from the home office.
Cooperation with technical organizations in the paper industry is a good means of developing new products and of finding
Please
highly skilled, specialized use personnel.
technical Adobe, Chrome, or Internet
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cooperation withfile.
leading machinery and
equipment suppliers to the paper industry is a key source of insight into arising technological trends, which allows a
specialty chemicals supplier to direct R&D work and marketing to areas of potential interest.
New entrants into the European

Contact Customerspecialty
Carepaper chemicals market face two formidable
(customercare@ihs.com) if you havebarriers
any to entry. One is the need
questions.
to develop an image as a reliable supplier offering a reliable product, and the second is the reluctance of paper mills to
change suppliers and types of chemicals used, given the potential risk of disruption that a change could bring to the
production of paper. Furthermore, given the high cost of R&D and the relatively low profits in the paper industry, in the
majority of cases it is unlikely that completely new products will be developed specifically for the paper industry. It is
more likely that producers of paper chemicals will market special formulations of existing products to meet the paper
industry’s requirements, force a systems approach, and attempt to link these systems with automatic process control
devices.
Japan
The general flow of paper chemicals—both commodity and specialty—from producers to end users in Japan is shown in
the following figure. In the Japanese specialty paper chemicals market, supply houses (distribution companies) play a
significant role and a much smaller percentage of specialty paper chemicals is sold directly to the mills by manufacturers
and formulators. About 60% of the chemicals flow through supply houses in Japan.
General structure of the Japanese specialty paper chemicals industry—2017
Historically, paper producers have depended on paper chemical suppliers to develop the most suitable products for their
processes. Therefore, the relationship between paper producers and specialty paper chemical suppliers is very strong and
well established.
The price of paper chemicals has become a key to success for the suppliers, since paper producers face severe price
competition. Thus, paper chemical producers with superior products and good technical service have seen an increase in
their market shares.
Paper chemical suppliers in Japan have technical service staff and chemical laboratories that can provide timely and tailor-
made services to papermaking companies. The technical service staff must know the unique characteristics of their
customers’ papermaking facilities and the specific requirements of their customers’ products. Therefore, the size of the
technical service and research staff in Japanese paper chemical companies is substantial.


Major participants
The Specialty paper chemical markets section provides details on all suppliers of specialty paper chemicals in Japan. The
following table lists the major paper chemical companies in Japan. Most Japanese paper chemical companies are not large,
but are highly specialized in a specific
Please area. Some
use Adobe, are privately
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or Internet Arakawa
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read this Harima Chemicals),
while others are part of or subsidiaries of larger companies (e.g., Seiko PMC, which is owned by DIC).
Major Japanese suppliers of specialty paper chemicals—2018

Company
Contact Customer Major
Care business Major products for the paper industry
(customercare@ihs.com) if you have any questions.
Arakawa Chemical Industries, Ltd. Paper chemicals, rubber chemicals, ink/paint chemicals Sizes, strength additives, retention aids
Harima Chemicals Group, Inc. Paper chemicals, ink/coating chemicals, and electronic Sizes, strength additives, retention/drainage aids
chemicals
Seiko PMC Corporation Paper chemicals, rubber chemicals Sizes, defoamers, wet-strength additives
Toho Chemical Industry Co., Ltd. Paper chemicals Sizes, binders, defoamers
Source: IHS Markit.
In addition to the companies listed in the above table, a number of companies participate in the specialty paper chemicals
business, including JSR, Kuraray, Kurita, Kao, and Lion. For some specialty paper chemicals, where large chemical
companies have an in-house raw materials base, they account for a large share of the market. For example, in the deinking
agent market, Kao Corporation, which pursues a vertical integration strategy, has about a 40% share of the market. The
company markets fatty acids and derivatives that can be used as deinking agents.
Recent R&D in the specialty paper chemicals industry in Japan is focused on solving issues related to achieving a higher
wastepaper recycling ratio, addressing environmental issues, and improving production efficiency.
Increasing use of wastepaper as a raw material has impacted R&D requirements, especially for deinking agents, bleaching
specialties, defoamers, and paper strength additives. The shift from acidic papermaking to alkaline (or neutral)
papermaking has affected R&D on slimicides and sizes. Environmental issues have directed R&D efforts toward pulping
specialties, bleaching, defoamers, pitch-control agents, and slimicides.
Because Japanese specialty paper chemical producers have good relationships with papermaking companies, R&D is
carried out in collaboration between them. Since paper chemicals are so specific to individual mills or processes,
collaboration in R&D can benefit the papermaking companies as well as the paper chemical suppliers.
Arakawa Chemical, the leading paper chemical company with about $162 million in sales of paper chemicals, spent $6.0
million on R&D for paper chemicals, accounting for approximately 3.7% of sales of the paper chemicals segment in fiscal
2017. Harima Chemicals, with about $144 million in sales of paper chemicals, spent $6.2 million for R&D on paper
chemicals, accounting for 4.3% of paper chemical sales. Seiko PMC, Japan’s second-largest specialty paper chemical
supplier with about $133 million in paper chemical sales, invested $6.6 million in R&D, accounting for approximately
5.0% of sales in fiscal 2017.

As in the United States and Western Europe, the technology involved in formulating or manufacturing paper chemical
specialties ranges from the uncomplicated mixing or dilution of purchased or captive ingredients (e.g., defoamers) to the
manufacture of highly proprietary, patent-protected, very sophisticated chemicals (e.g., biocides and dyestuffs). For
specialty paper chemicals, a company’s formulation and technical know-how is extremely important. However, technical
service is equally important because each paper mill has its own technical specifications, product line of papers, and
chemical and process requirements, as well as its own set of problems. Companies providing this type of service are
known as solution providers.
As in the United States and Europe, many of the chemically synthesized paper specialties (such as specialty starches,
polyvinyl alcohol, urea-formaldehyde resins, and styrene-butadiene latex) are based on widely known and relatively


simple technologies. Some Japanese paper manufacturers produce specialty starches on-site. Only for products such as
biocides, polyamide-epichlorohydrin resins, alkylketene dimers, dyes, fluorescent whitening agents (FWAs), and some
specialty polymer coatings has the technology become more sophisticated. The manufacturing facilities in Japan for most
formulated paper chemical products are simple. However, the quality standards are higher in Japan than in the United
States and Europe, andPlease use Adobe,
quality control Chrome,Chemicals
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for functional this
papers file.
(e.g., thermo-sensitive and
pressure-sensitive papers) are expected to be of particularly high quality and reliability.
Restructuring of the industry has taken place to reduce production costs since price competition has become increasingly
Contact
severe, reflecting Customer
maturing Care
markets and (customercare@ihs.com)
paper if you have any questions.
price competition from imports.
Major paper chemical producers have also established production sites in China and other Asian countries. Arakawa
Chemical increased its share of a joint venture, Wuzhou Arakawa Chemical (Guangxi Zhuang Autonomous Region) in
March 2004. In April 2004, the company founded a 100%-owned company, Nantong Arakawa Chemical Co., Ltd. (Jiangsu
Province), to produce strength additives and sizes to meet increasing demand from the Chinese market. The plant has
been onstream since May 2006. In January 2011, Guangxi Wuzhou Arakawa Chemical Industries, Ltd. merged with
Wuzhou Arakawa Chemical Industries, Ltd. and Guangxi Arakawa Chemical Industries, Ltd. for manufacture and sales of
rosin, rosin derivatives, chemicals for paper manufacturing, and resins for adhesives, etc.
Harima Chemicals has been operating two affiliates for producing paper chemicals in China: Hangzhou Hanghua Harima
Chemicals Co., Ltd. since October 1997 and Dongguan Hanghua-Harima Paper Chemicals Co., Ltd. since February 2011.
Seiko PMC, the latest entrant into China, established Seiko PMC (Zhangjiagang) Corporation in China in April 2005 and
started production of polyacrylamide-based strength additives and rosin-based sizes at Zhangjiagang, Jiangsu in May
2006.
Marketing
The most important marketing consideration of a specialty paper chemicals producer in Japan is the formation and
continuation of good relationships with customers.
Intensive sales and strong customer service are necessary for successful participation in the specialty paper chemicals
business. Sales personnel, who frequently have a role as customer service engineers, have strong knowledge of paper
manufacturing processes and the use of various chemical additives. Most paper chemical companies locate their plants
very close to the papermaking mill (sometimes they have an on-site facility). The need for timely service has grown
because of the increased use of high-speed papermaking machines in the mills and because of the need to save inventory
costs for raw materials. This is especially true for products used in solution (e.g., paper strength additives). Strategically
placing chemical facilities close to paper mills also saves transportation costs.
In Japan, the use of specialty paper chemicals is usually accompanied by close technical cooperation between the paper
mill and the chemical supplier. Each paper mill has its own characteristics and issues, and cooperation is thus very
important to success in marketing specialty paper chemicals. Long-standing relationships between users and suppliers are
very common. However, for paper manufacturers in Japan, cost versus performance is sometimes more important than
maintaining a close relationship with a supplier. The increasing imports of cheaper paper have made paper manufacturers
price/cost sensitive.
If a non-Japanese company desires to enter the Japanese market, cooperation with a partner that is knowledgeable and has
enough experience in the Japanese paper industry is strongly recommended. As shown in the Structure of the industry
section, Japanese supply houses (sales agents) play a very important role in the Japanese market and account for
approximately 60% of total sales of specialty paper chemicals.

The following table shows the financial data for some of the larger Japanese companies that sell specialty chemicals to the
paper industry.


Sales and income of major Japanese specialty paper chemical companies—2017a
Sales of R&D
special- Operating Percent expendi- Number
Profita- ty income of ture of
bility paper (paper sales in R&D (paper employ-
Operating Net (net chem- chemicals special- expendi- chemicals ees
Sales income income income/ icals segment) ty ture segment) Number for
(millions (millions (millions net (millions (millions paper (millions (millions of paper
of
Contact Customer of of sales) of of chemicals
Care (customercare@ihs.com) of questions.
if you have any of employ- chemical
dollars) dollars) dollars) (percent) dollars) dollars) (percent) dollars) dollars) ees business
Arakawa Chemical 686 45 30 4.4 162 11 23.6 28 6 1,442 327
Industries, Ltd.
Harima Chemicals 633 35 22 3.4 144 15 22.7 22 6 1,462 235
Group, Inc.
Seiko PMC Corp. 209 20 15 7.4 133 16 63.6 15 7 590 331
Toho Chemical 342 20 3 0.8 na na na 13 na 705 na
Industry Co., Ltd.
a. Based on an exchange rate of ¥112.7 per dollar for fiscal year 2017 (ended 31 March 2017), except ¥120.6 per dollar for Seiko PMC Corporation for fiscal year 2016 (ended December 2016).
Profitability of the paper chemical companies, defined as net income as a percentage of net sales, varied from as high as 7%
for Seiko PMC to as low as 0.8% for Toho Chemical. Paper chemical companies tried to raise prices to improve profitability,
but althought this has helped improve their financial situation, paper companies continue to experience price pressure
from Chinese competitors.
A more detailed look at the financial performance and cost structure of Seiko PMC is shown below. The company derived
64% of total sales from specialty paper chemicals on a consolidated basis in calendar year 2016. Seiko PMC is one of the
leading producers of sizes, retention and drainage aids, and strength additives in Japan. Other product lines include resins
for printing inks and recording materials.
Cost structure for Seiko PMC Corp.—2016a

Millions of Millions of Percent of
yen dollars sales
Sales 24,347 209 100
Cost of sales 17,591 151 72
Total sales profit 6,756 58 28
Operating expenses 0
Labor costs for sales and administration 2,737 23 11
R&D costs 1,718 15 7
Total operating expenses 4,455 38 18
Operating income 2,301 20 9
Profits 0
Profit before taxes 2,374 20 10
Taxes 580 5 2
Profit after taxes (net income) 1,794 15 7
a. Consolidated basis. Based on an exchange rate of ¥116.5 per dollar for calendar year 2016.
Source: IHS Markit based on company annual report. © 2018 IHS Markit
Since the 1970s, many environmental laws and regulations have been enacted and put in force. Since the 1990s in
particular, they have featured waste and chemical substance management for environmental conservation, and involves
the establishment of a framework for a sustainable society.
There are no specific government regulations for specialty paper chemicals. These chemicals are covered under Japanese
regulations for other chemicals in the Law Concerning the Examination and Regulation of Manufacture, etc. of Chemical
Substances established by the Ministry of Economy, Trade and Industry (METI). However, some environmental and fire


regulations impact paper and paper chemical manufacturers more than other laws. These include the Water Pollution Law,
the Air Pollution Control Law, and the Offensive Odor Control Law established by the Ministry of the Environment
(MOE), as well as the the Fire Service Law established by the Fire Defense Agency. For example, in the defoamer market,
formulations that are water based (e.g., water emulsion–type formulations) are preferred for safety reasons. Regulations
under the Fire Law arePlease use
strict and Adobe,that
defoamers Chrome, or Internet
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must be file.
stored in prescribed
spaces.
The Law for Promotion of Sorted Collection and Recycling of Containers and Packaging, in effect since April 2000, led to a
further increaseContact Customer
in the utilization rateCare (customercare@ihs.com)
for recovered if you
wastepaper in the Japanese have
paper any This
industry. questions.
obviously affects the
use of deinking chemicals and other paper chemical technologies as well. In 2000, the Law of Product Liability passed the
Diet. In April 2001, the Law Concerning Reporting Release to the Environment of Specific Chemical Substances and
Promoting Improvements in Their Management (the so-called Pollutant Release and Transfer Register Law [PRTR]) came
into effect. This impacted the use of chlorinated chemicals in the pulp and paper industry.
In addition, the Law Concerning Special Measures against Dioxins (the so-called DXN Law) has been in effect since
January 2000. The law also affects the paper and pulp industry in reducing the use of chlorine and chlorinated compounds
in general.
As for waste management, 12 laws were promulgated during 1995–2000, six of which are related to recycling. The Waste
Management and Public Cleansing Law has been revised frequently.
Some laws and regulations need to be monitored carefully in the pulp and paper industry, such as the introduction of
volatile organic compound (VOC) regulations in the Air Pollution Control Law, the revision of total pollutant load control
in the Water Pollution Control Law, and the spread of odor regulations based on human olfactory perception.

Trends observed in recent years include the following:
• Increasing consumption of wastepaper as a raw material not only for paperboard but also for plain papers will require
new advanced paper chemicals, in particular sizes and strength agents.
• Increasing use of low-quality wastepaper like magazines will require sophisticated deinking agents.
• A high level of environmental concern drives demand for advanced wet-end chemistry and/or biotechnology.
• Increasing demand for ink-jet printing paper provides paper chemical suppliers with an opportunity to provide paper
chemicals that are more compatible with ink-jet inks.
These trends have brought about new developments in the industry. Trends impacting each specialty paper chemical
group are presented in the Specialty paper chemical markets section of this report.

Most specialty paper chemicals in Japan are sold as a total service package that includes consultation and technical service.
This means that price is not the only important factor in the decision to purchase, and once good relationships with a
customer have been established, continuous purchases of paper chemicals could be expected, assuming delivery of quality
and cost-effective products. Unfortunately, increased competition in the paper industry, particularly from imported
material, has made price the prime criteria for choosing suppliers in recent years.
The following are critical factors for success for specialty paper chemical companies operating in Japan.
• Technical service with close customer relationships. Understanding a customer’s paper mill and operating
conditions is essential. Paper chemical companies should know the types of paper produced at the mill in order to
evaluate the paper chemicals that are most suitable to the process and the mill’s operating conditions. Sufficient
technical service to solve any operational problem is a must.


• Interaction with customers. Long-term good relations with customers and consistent negotiation on price-setting
enable a reasonable profit for both the papermaking companies and the specialty paper chemical suppliers.
• Quality and cost-competitiveness. Quality must be consistent, and chemical production must take into account
Please
economies of scale in use
order for theAdobe, Chrome,
paper chemical or Internet
company to remainExplorer to read this file.
cost-competitive.
• Location of plants and service stations. The importance of timely technical service has been increasing because of
the use of high-speed papermaking machines and the high level of papermaking capacity at mills. The timely delivery of
paper chemicals is critical.
Contact Most paper
Customer chemical
Care companies have multiple plants
(customercare@ihs.com) if youtohave
serve any
their questions.
customers. Proximity to
customers can save transportation costs, especially for chemicals in solution (e.g., wet-strength additives).
• Reputation for quality products. Products and companies with a good reputation can participate in more business
opportunities.
• Performance. Unique products with excellent performance must be offered. These products must be able to achieve
total production costs savings for a paper product or add superior function to the paper. New types of high-performance
paper chemicals have continually entered the market and increased their share.
In addition to the above, it is essential for Japanese paper chemical companies to build a strong reputation in the
international marketplace because of the global nature of the paper industry.
China
Prior to 2000, China’s domestic paper manufacturing facilities were small in scale, and the technology was not advanced.
The requirement for paper chemicals was very limited at the time. With the arrival of large-scale papermaking facilities
during the late 1990s, demand for specialty paper chemicals took off. Papermakers had to import large volumes of paper
chemicals to meet their requirements. The lack of domestic chemical supply attracted many international chemical
companies to the Chinese market, and these companies constructed manufacturing facilities through joint ventures with
local companies. Over time, international companies were able to start wholly owned facilities. The table below outlines a
chronology of some of the important joint projects for specialty chemicals in China.
Major international paper chemical companies’ activities in China

Date of
build or Location of Major
Company acquisition operation products Remarks
Arakawa Chemical
Arakawa Chemical May 2006 Nantong, Various paper chemi- Owned 100% by Arakawa Chemical.
(Nantong) Co., Ltd. Jiangsu cals
Arakawa Chemical Industries 2008 Wuzhou, Guangxi Rosin and derivatives Producing sizing agents.
(Wuzhou) Co., Ltd.
Arkema
Arkema Chemical July 2009 Changshu, Acrylate Owned 100% by Arkema.
(Changshu) Jiangsu polymers
Co., Ltd.
BASF
BASF Specialty — Sizes Owned 100% by BASF.
Chemical Co., Ltd.
BASF Gaoqiao 1986 Shanghai Styrene- Ciba Specialty owned 100%. Ciba merged with BASF in 2009.
Dispersants butadiene
Co., Ltd. latex, styrene-
propyl latex
BASF Huizhou 2010 Huizhou, Guangdong XSB Producing XSB latex for paper coating.
BASF Nanjing 2012 Nanjing, Jiangsu Cationic polyacry- Producing CPAM for retention agent.
lamide
Dow Chemical


Major international paper chemical companies’ activities in China (continued)
Date of
build or Location of Major
Company acquisition operation Remarks products
Dow Chemical (Zhangjiagang) May 2006 Zhangjiagang, Styrene- Owned 100% by Dow Chemical.
Co., Ltd. Jiangsu butadiene
latex
Harima
Hangzhou Harima October 1997 Hangzhou, PAM dry Jointly owned by Hangzhou
any Chemical Research Institute and
Harima Chemicals of Japan.
Contact Customer Care (customercare@ihs.com) if you have questions.
Paper Chemical Zhejiang strength
Co., Ltd. additive, rosin-based
size
Kemira
Kemira Nanjing 2014 Nanjing, Jiangsu PAC, biocides, deink- Production of polyacrylate, biocides, and deinking agents began
ing agents, AKD, in 2014; production of ASA, AKD, and rosin sizes started in
ASA, and rosin sizes 2017.
Kemira Tiancheng May 2008 Yanzhou, AKD Joint venture between Kemira and Shandong Tiancheng Chemi-
Chemical Shandong cal Company.
(Yanzhou)
Co., Ltd.
Roquette
Roquette Starch (Lianyungang) March 2006 Liangyungang, Modified Owned 100% by Roquette Corporation.
Co., Ltd. Jiangsu starch
Solenis
Solenis August 1995 Shanghai AKD Initially a joint venture with Shanghai Chlor-Alkali Chemical Co.,
(Shanghai) Ltd. Hercules owned 60% of the company, but acquired the 40%
Chemical owned by Shanghai Chlor-Alkali in 2006. Ashland acquired Her-
cules in 2008 and the business was spun off as Solenis in 2014.
Co., Ltd.
Solenis (Beijing) Angel Specialty November 1995 Beijing PAM Began as an 85/15 joint venture between Stockhausen and Bei-
Chemical Technology jing Tianlong in 1995. Degussa acquired the plant in 2004. Ash-
Co., Ltd. land acquired Degussa in 2006. The plant was part of the
spin-off to Solenis in 2014.
Solenis (Jiangmen) Chemical Co., Ltd. December 2003 Jiangmen, Guang- CMC Hercules acquired the facility of Jiangmen Liangzi High-Tech
dong Biochemical Co., Ltd. Ashland acquired the plant in 2008 and
became Solenis in 2014.
Yika Chemical
Yika Chemical 1999 Suzhou, Sizes Owned 100% by Yika Chemical.
(Suzhou) Co., Ltd. Jiangsu
Yika Chemical November 2006 Guangzhou, Guang- Sizes Owned 100% by Yika Chemical.
(Guangzhou) dong
Co., Ltd.
Yika Chemical Guangzhou 2011 Guangzhou, Guang- Retention and Producing colloidal diatomite for paper retention.
dong drainage aids
The entrance of established foreign companies into China enabled the expansion of the paper chemicals industry by
providing technology and business know-how. Within 15 years, domestic chemical companies were able to provide most
of the chemicals required for paper processing. Nonetheless, the quality of some of the products remains below that of
imported materials supplied by foreign manufacturers, and highly specialized paper chemicals continue to be imported.
However, the current trend has been for international companies to replace imports with domestically produced
chemicals. For example, BASF invested in a polyacrylamide (PAM)-producing plant and Kemira built an alkyl ketene dimer
(AKD) sizing–producing plant, both in Nanjing. The international companies are trying to provide better service to China
through local production instead of imports.
There are over 1,000 producers of specialty and commodity paper chemicals in Shandong, Zhejiang, Jiangsu, Guangdong,
and other provinces. It has become difficult for these companies to compete against the larger, more advanced companies.
Several paper chemical segments are suffering from overcapacity and depressed prices. Moreover, the paper industry has
been sluggish, which creates a harsher environment for the smaller companies. At the same time, the foreign companies
have been negatively affected by the proliferation of domestic producers as they compete for market share. Moreover,
some of these domestic companies have accumulated in-depth industry knowledge and acumen to be able to compete


head-on with international companies. The major challenges facing domestic producers today include strict cost
management in the face of a less profitable paper industry, the need for more product innovation, and the need to provide
quality technical service.
Major participants
The following table shows the major paper chemical producers in China. Paper chemical producers tend to specialize in a
specific market segment and only manufacture one or two series of paper chemicals. An example is Transfar Whyyon
Chemical Company. It produces only dye auxiliaries for the paper industry. There are also several large-scale producers
Contact
that manufacture Customer
a product line with Care (customercare@ihs.com)
very broad if you
applications. For example, PAM have any
producers questions.
sell mainly to water treatment
applications; for them, paper is a smaller market.
Major Chinese suppliers of specialty paper chemicals—2018

Major products for
Company the paper industry Major chemicals
Anhui Tianrun Chemicals Co., Ltd.
Bengbu, Anhui Retention and drainage aids and dry-strength ad- PAM
ditives
Aodong Chemical Group
Tangshan, Hebei Sizes AKD
Beijing Hengju Chemical Group Corporation
Beijing Retention and drainage aids and dry-strength ad- PAM
ditives
Henan Titaning Chemical Technology Co., Ltd.
Zhengzhou, Henan Pulp chemical
Fermer Technology Co., ltd.
Zhangjiagang, Jiangsu Retention aids, drainage aids Organic ultramicron
Guangxi Farms Mingyang Biochemical Co., Ltd.
Nanning, Guangxi Zhuang Retention aids Modified starch
Hanghua Harima
Hangzhou, Zhejiang Dry-strength aids, rosin sizing agents Rosin, amphoteric ionic dry strength
aids, cationic wet strength aids.
Hangzhou Research Institute of Chemical Technology Co., Ltd.
Hangzhou, Zhejiang Sizes, strength aids, drainage aids, retention aids Modified starch, rosin-based prod-
ucts.
Jiangsu SNF (China) Flocculants Co., Ltd.
Taixing, Jiangsu Retention and drainage aids and dry-strength ad- PAM
ditives
King Tianqing Chemical Technology Co., Ltd.
Guangzhou, Guangdong Biocides
Papermate Science & Technology Co., Ltd.
Hangzhou, Zhejiang Sizes, modified starch, drainage aids, retention PAM, modified starches
aids
Shandong Tiancheng Chemical., Ltd.
Yanzhou, Shangdong Strength aids AKD
Sixin Scientific-Technological Application Research Institute Co., Ltd.
Nanjing, Jiangsu Foam control agents PAM
Sustainable Accele-tech Co., Ltd.
Shanghai Sizes, retention aids, defoam agents Rosin based
Tianma Group-Tianhe Chemical
(Suzhou) Co., Ltd.
Suzhou, Jiangsu Sizes, strength aids, drainage aids AKD
Transfar Whyyon Chemical Co., Ltd.
Xiaoshan, Zhejiang Fluorescent whitening agents, dyes


During 2000–10, international paper chemical players established research centers to support their business in China.
These research centersPlease use Adobe,
are responsible Chrome,
for technical orand
service Internet Explorer
ensuring to read this
that the chemicals meetfile.
Chinese specifications.
The core product development is not based in China.
For example, the former Ciba Specialty Chemicals (now BASF Specialty) invested $20 million to build a research center in
Shanghai. The company transferred some of its foreign researchers to China to develop paper chemicals tailored for
China’s market as well as to provide local service and support to clients. Hercules Chemical (now Solenis Chemical)
opened its own research center in Shanghai in 2007, which includes six laboratories and a training center. The research
center tests and formulates products for the Chinese market, while also providing support to technicians that have to
solve customers’ problems.
Foreign companies collaborate with domestic Chinese institutes, large companies, and universities to research and
develop paper chemicals. Hangzhou Research Institute of Chemical is the first technology and information center for
paper chemicals in China. The institute researches deinking agents, paper processing chemicals, functional chemicals, and
surface sizing agents. The institute also invested in two companies to develop and produce new products.
Some Chinese companies are financially and technically able to run their own R&D divisions. For example, Tianma
Pharmaceutical Group developed AKD sizing agents with solvent producing technology. Transfar Whyyon Chemical
Company focused on developing fluorescent whitening products to replace imported material. Sixin Scientific Technology
Application Research Institute has a strong R&D capability for foam control agents.
In the earlier stages, China’s R&D activities focused primarily on imitating imported products. The goal was to help
domestic paper mills reduce costs by replacing imported products or those products made domestically by foreign
companies. Some notable research included improving the manufacturing process for AKD and the use of nonwood pulp
as a raw material. In recent years, the focus has shifted to products that are environmentally acceptable—something that
has gained importance because of government regulations. Minister Li Keqiang’s government, which took over on 15
March 2015, announced that the government will not only enact environmental protection laws, but will also enforce
them. Government regulations would thus dictate R&D activity in paper chemicals.
Because of stricter environmental regulations, many small and middle-sized paper mills have discontinued operations,
while larger-scale paper producers are finding solutions to improve profitabilty in the face of costly environmental
compliance. Some companies are exploring changing the types of process chemicals they purchase to reduce overall
operating cost. There is opportunity for new, environmentally friendly chemical groups and functions to enter the
market; this has become the current and future driver for R&D at paper chemical companies.
Marketing
Foreign companies dominated the Chinese market for many years because of a shortage of paper chemicals designed for
the advanced papermaking machines. Once domestic companies gained knowledge and experience, they were able to
compete with established companies by offering low prices and flexible sales patterns that allowed them to meet special
requirements of clients. Because of these well-established relationships between supplier and customer, it has become
very difficult for new players to enter the market. Unless a company can offer a product with excellent properties that can
significantly lower a company’s cost structure, the chances of entry are low.
Competition in the paper chemical market is severe. It is made worse by the existence of many small producers that
produce chemicals from low-quality or unregulated raw materials. These chemicals enter the market at very low prices.
This problem is gradually disappearing as stricter enforcement of environmental regulations force the shut down of small,
uncompetitive companies.

Raw materials, labor, and operating fees are the primary variable costs in China’s specialty chemical manufacture. R&D is
only a small part of the total cost structure. Tianma Group is the first publicly owned company producing paper chemicals


in China. The table below shows the company’s financial data and illustrates the profitability conditions for specialty paper
chemical producers in China.
Estimated cost structure for Tianma Specialty Chemical Co. Ltd.

2015a 2016b
Millions of Millions of Percent of Millions of Millions of Percent of
renminbi dollars sales renminbi dollars sales
Sales 1,063 169 100 1,194 180 100
Cost of sales 48 (customercare@ihs.com)
Contact Customer Care 8 5 if you have
65 any questions.
10 5
Manufacturing cost 650 104 61 700 105 59
Management cost 118 19 11 143 22 12
Margin 246 39 23 286 43 24
Asset depreciation 140 22 13 171 26 14
Total profits 106 17 10 115 17 10
R&D costs 19 3 2 27 4 2
a. Based on an exchange rate of 6.28 renminbi per dollar for fiscal year 2015.
b. Based on an exchange rate of 6.64 renminbi per dollar for fiscal year 2016.
Source: Tianma annual reports. © 2018 IHS Markit
The above table represents Tianma’s consolidated financial data and includes all products, including paper chemicals,
pharmaceutical intermediates, and pesticide intermediates.
The table below shows the company’s revenue and margin by product category in 2016.
Tianma Group’s revenue and margins by product segment—2016

Revenue Cost
Millions of Millions of Millions of Millions of Margin rate
renminbi dollars renminbi dollars (percent)
AKD 336 51 301 45 10.4
Other paper chemicals 173 26 127 19 26.6
Pharmaceutical intermediates 329 50 216 32 34.3
and products
Pesicide intermediates 163 25 117 18 28.2
a. Based on an exchange rate of 6.64 renminbi per dollar for fiscal year 2016
Source: Tianma Annual Financial Report in 2016. © 2018 IHS Markit
The paper industry is a large consumer of water resources and a high-polluting industry. There are many strict regulations
related to saving production resources and decreasing production discharges. GB3544-2008, which has been in place since
2008, defines the maximum allowable discharge concentrations in water, the maximum water effluent per ton of product,
and the effluent discharge allowed. The standard is described below.


Chinese standards for water pollutant discharges—GB3544-2008a
Pulp and papermaking
integrated company
Other pulp Wastepaper
pulp and and Paper-
Discharge Pulp papermaking papermaking making Monitor point of
standards Category only integrated integrated only discharge
1 pH 6-9 6-9 6-9 6-9 Company’s root discharge point of wastewater
2 Chromaticity 80
Contact Customer Care 50 50
(customercare@ihs.com)50if you
Company’s
haverootany
discharge point of wastewater
questions.
(dilution ratio)
3 Suspended solids 70 50 50 50 Company’s root discharge point of wastewater
(SS) (mg/L)
4 Biological oxygen 50 30 30 30 Company’s root discharge point of wastewater
demand (BODs) (mg/L)
5 Chemical oxygen 200 120 150 100 Company’s root discharge point of wastewater
demand (CODcr) (mg/L)
6 Ammonia nitrogen 15 10 10 10 Company’s root discharge point of wastewater
Content (mg/L)
7 Total nitrogen 18 15 15 15 Company’s root discharge point of wastewater
content (mg/L)
8 Total phosphorus 1 1 1 1 Company’s root discharge point of wastewater
content
9 Adsorbable organic 15 15 15 15 Wastewater discharge point at workshop or production
halides (AOX) (mg/L) line
Standard water displacement of 80 20 60 20 The water discharge measure point needs to be consis-
unit product (ton/ton) tent with the discharge monitor point
a. AOX standard applies to companies using chlorine bleaching.
Pulp volume is counted as 100% dry pulp.
When measuring the practical water displacement of pulp and papermaking integrated companies, purchased pulp volume should be counted together with company-produced pulp volume.
Source: Ministry of Environmental Protection of China. © 2018 IHS Markit
Chinese companies also have to comply with environmental regulations in other countries that import paper and
paperboard from China. Regulations concerning food safety are becoming an important factor for many specialty
chemicals manufacturers.

• Stricter enforcement of environmental regulations will increase the manufacturing costs of paper companies. The high
cost of compliance will drive the closure of small, inefficient plants and pressure larger companies to raise product prices
and reduce operating costs. These companies will need to re-evaluate their existing processes to optimize their use of
chemicals. The need for environmentally friendly chemicals and technology will be in great demand.
• Paper manufacturing consumes significant volumes of water and is highly polluting. Stricter government regulations
demand stringent manufacturing processes that consume less water and produce very little pollutants in the effluents.
Older, inefficient pulp and paper process technologies will be replaced and new types of chemicals will be required.
• Specialty chemicals used in the production of high-end paper products and specialty papers will achieve higher growth
rates.
• The emergence of large-scale papermaking units and joint-venture papermaking enterprises has led to a significant
improvement in the technical level of the paper industry in China, driving a remarkable improvement and demand for
paper chemicals. This trend is expected to continue into the future.
• In the sizing process, surface sizing technology is replacing internal pulp sizing. To lower costs, some paper mills have
adopted surface sizing with AKD or found another surface sizing agent to replace AKD used in internal sizing.


• Enzyme technology is gaining traction in dealing with stickies and other deposits resulting from the use of recycled
wastepaper pulp. Enzymes also have potential uses in improving fiber strength and modifying starch and resin control.
However, wider industry adoption will depend on product quality and the ability of enzyme suppliers to educate and
train customers on their properties and applications.
• China is in a transition period, and the changing macroeconomic environment suggests some challenging times for
chemical suppliers in the paper industry. The volume demand for existing paper chemicals will only grow modestly, but
there will be opportunities for new chemicals, technologies, and applications.
• Paper chemical producers are paying more attention to after-sales service to their clients. Major multinational
companies act as strong examples of this high service orientation for local companies to follow.
• Regulation of waste effluents and the environmental safety of the paper and pulp industry are becoming increasingly
serious. A good understanding of China’s regulations and legislations related to the paper industry is essential.
Environmentally safe paper chemical production processes are very important to paper chemical producers.
• Product diversity is a requisite of the Chinese specialty paper chemical market, especially for high-quality and high-
performance products. Chinese R&D capability still needs improvement.
• Maintaining close long-term relationships with both raw material suppliers and downstream application companies is
beneficial to paper chemical producers.
• Providing excellent training in the use of specialty paper chemicals as well as customer service for downstream users
would be very welcome in the industry.
• Domestic companies are disadvantaged in R&D. For these companies, increasing their emphasis on research and
development is a critical factor. In recent years, some size manufacturers have switched their marketing strategy to
focus on the domestic market.
• For foreign companies thinking about establishing a business in China, an in-depth understanding of Chinese
regulations, legislations concerning foreign companies, and the norms in the paper and pulp–related industry is very
important. Maintaining close relationships with relevant governmental sectors will greatly contribute to a foreign
company’s success in China.


Specialty paper chemical products and functions
Specialty paper chemicals are often formulations of several chemicals but there are also many single-chemical products.
Specialty paper chemicals can be divided into three groups.
• Pulp and fiber treatment chemicals such as bleaching, pulping, and deinking chemicals.
• Processing aids, which are used to improve the efficiency of paper production including defoamers, pitch-control agents,
biocides/slimicides, and retention and drainage aids.
• Functional chemicals, which are used to impart various properties to the finished paper ranging from improved strength
and optical properties to enhanced printability (dry- and wet-strength resins, sizing agents, coating binders, and
specialties as well as dyes, pigments, and fluorescent whitening agents).
Water treatment chemicals used in the paper industry are not included in specialty paper chemicals.
Many of the chemicals used in pulping and papermaking are shown in the following figure, which also depicts particular
chemicals’ use within the general papermaking process.
The papermaking process
Sources: Aqeel Zaidi, PE, UnionGas Co, CIGC-IGT Presentation, 7/2000, © 2002, http://gaspaperdryer.org/learn-about-paper-drying/; IHS Markit © 2018 IHS Markit


Bleaching specialties
The specialty chemicals covered under this category includes ethlylenediaminetetraacetic acid (EDTA), pentasodium
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borohydride,
sulfinic acid (FAS), and to a smaller extent, enzymes.
Up until the 1990s, the method of chemical pulp bleaching was essentially based on the use of elemental chlorine and
comprised several bleaching
Contact steps. This
Customer bleaching
Care method was highly efficient,
(customercare@ihs.com) but generated
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environmentally hazardous substances, such as dioxin. Since then, most mills have switched to either the elemental
chlorine–free (ECF) or the totally chlorine–free (TCF) bleaching processes. Today, the majority of mills worldwide use ECF
bleaching. A few mills use TCF, and these are located primarily in the Scandinavian countries and Germany.
Because of concerns over chlorine, the industry turned to other chemicals. Hydrogen peroxide became the established
bleaching agent of choice, together with chlorine dioxide (which generates less than one kilogram of adsorbable organic
halogens [AOX] per ton of pulp). The bleaching sequence combines bleaching and delignification steps, in which chlorine
dioxide performs as the main bleaching compound and is supported by hydrogen peroxide and ozone in the first
delignification step. Liquefied oxygen is also increasingly being used in the pulp bleaching process. Ozone (which is
generated at the mill from oxygen) and liquid oxygen are used in combination with it. Ozone is the preferred bleaching
agent for TCF pulp.
In Western Europe, peracetic acid is used as a bleach alternative based on the advantage that it is highly specific to lignin
and therefore does not degrade cellulose as other bleaching agents do. The use of peracids is common in Finland and
Sweden.
For reductive bleaching of thermomechanical (TMP) pulp, only hydrogen peroxide and sodium hydrosulfite (also called
sodium dithionite) are effective bleaching agents. Sodium borohydride is used to generate sodium hydrosulfite from
sodium bisulfite. Sodium hydrosulfite is typically less expensive than hydrogen peroxide but cannot achieve as high a
brightness. Thus sodium hydrosulfite is used to bleach groundwood pulp, TMP, and mechanical pulp used in the
manufacture of primarily newsprint, while hydrogen peroxide is necessary whenever chemithermomechanical pulp
(CTMP) is bleached to manufacture printing-, writing-, or tissue-grade paper. Pulp producers are also applying a combined
sequence of peroxide/dithionite bleaching for special grades. Sodium borohydride is popular in the United States, Western
Europe, and China, but not in Japan because of the high cost of the product.
The only alternative reductive bleach to hydrosulfite is thiourea dioxide (TDO), which can also exist under certain
conditions as FAS. The typical dosage of FAS is 0.1–0.6% based on dry fiber. FAS is generally used in combination with
other bleaching agents, such as peroxides, for producing deinked pulp. FAS is more expensive than hydrosulfite but has a
higher reductive potential under high pH and temperature conditions, and the dosage required is about one-third
hydrosulfite on a pound-per-pound basis. As a result, it is used in high-value specialty applications where high brightness is
more important than cost.
FAS is used in Western Europe as a brightening and color-stripping agent in the bleaching of secondary fibers for the
production of tissue paper. FAS is also used in China and, for a short time, in the United States. FAS was launched in the
United States in the mid-1990s for chlorine-free and hypochlorite-free bleaching in recycled paper mills—particularly on
deinked mixed office waste for color removal. By the mid-2000s FAS had not become a significant bleaching agent in the
NAFTA region, and its limited consumption was supplied by imports from Europe.
Enzymatic bleaching and pulping with xylanases has grown to a value of several million dollars in North American
bleached kraft plants. Xylanases are being used as prebleach treatments at softwood, 100% chlorine dioxide–substituted
kraft pulp mills. Effectively, they delignify and ease the brightening loads, thereby reportedly reducing chemical
bleaching agent requirements by as much as 30%. Xylanases attack the xylan that is redeposited on fibers toward the end
of digestion. (By removing the xylan, the lignin is more accessible to the bleaching chemicals.) Pretreatment of wood
chips or pulp with white rot fungus or its enzyme has been shown to be a beneficial biopulping method.


The chelating agents EDTA, DTPA, and diethylene-triamino-penta(methylene phosphonic acid) (DTPMP) are often
referred to as peroxide bleach stabilizers, but are actually used on a variety of different types of pulps.
Chelants are particularly important in the peroxide bleaching of mechanical pulps because these pulps retain almost all
their lignin, and heavyPlease useare
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of hydrogen peroxide.
DTPA is used in high-brightness mechanical pulp bleaching with hydrogen peroxide, the brightening of recycled pulp with
hydrogen peroxide, and several smaller-volume applications. EDTA is primarily tied to mechanical pulping and bleaching
with sodium hydrosulfite. Chelant consumption is believed to be split 50:50 between EDTA and DTPA. Both are marketed
Contact
as 38–40% solutions. Customer
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pulp mills have(customercare@ihs.com)
found that sodium silicate is an ifeffective
alternative to EDTA and DTPA in
order to deactivate heavy metals prior to use of hydrogen peroxide bleach. The extent of substitute use, however, is not
known. Chelants are also required when producing TCF, bleached TMP pulp, and bleached CTMP pulps, as well as pulp
from recycled paper and paperboard.
Deinking agents
Deinking is the process of removing ink particles from wastepaper fiber by a combination of mechanical and chemical
action. Deinking has become one of the most important operational steps in paper production, given that almost 60% of
the raw material used worldwide to manufacture paper and board in 2016 came from recycled paper.
The main steps in the conventional deinking process are repulping, ink separation, and postbleaching. In repulping, the
paper structure is disintegrated by means of chemicals and mechanical energy, and an aqueous dispersion of printing inks,
dirt, fibers, and fillers is obtained. The separation of the dispersed printing inks from the wastepaper pulp is accomplished
by the flotation or washing deinking process.
The washing technique is basically a laundering technique using nonionic dispersants or surfactants and was commonly
used on old newspapers. Washing processes are viable when furnishes have dispersible inks or when substantial ash
removal from a filled or coated wastepaper is desired. Washing requires a significant amount of water, removes fillers and
binders, and is very effective on smaller ink particles. However, this process has relatively high product losses of 20–25%
and very high water consumption—up to 100 cubic meters per metric ton.
In flotation deinking, the ink particles are rendered hydrophobic by fatty acids, then attach to air bubbles with collector
chemicals and rise to the pulp slurry surface as foam. They are skimmed off with the foam. About 90% of the original fiber
content is recovered, and the specific water consumption is about 8–12 cubic meters per metric ton. Flotation process is
also more effective on larger and nondispersible ink particles than washing. Today, a majority of mills in Europe, North
America, Japan, and China rely on flotation deinking or a combination of washing and flotation techniques. The latter is
important given the different types of inks used in printing and the diversity of sources of recycled paper.
The types and amounts of deinking chemicals used depend on the type of wastepaper, the type of printing ink and how
firmly it adheres to the paper, and the intended end use of the recycled pulp. No two deinking mill operations are exactly
the same, although some generalizations can be made. Most commodity chemicals used in deinking mills are purchased
separately by the deinking mills for the different types of deinking processes. Deinking chemical suppliers have tended to
work directly with equipment vendors in order to ensure proven and cost-effective use of their products when the new
deinking equipment is installed at recycle and deinked market pulp mills.
An indication of the great variety of chemicals used in deinking processes is given in the following table.

Typical deinking chemical components
Dosage
(percent
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Furnish on
Function type fiber)
Enzymes, cellulases Facilitates toner-based Mixed office waste na
ink removal
Fatty acid (e.g., stearic or oleic acid)
Flotation ink collection All grades 0.5-1.0
Hydrogen peroxide Bleach Groundwood 1
Color strip grades
Some whites
Hydrophilic polymeric dispersants (e.g., Ink dispersion All grades 0.1-0.5
polyacrylates and diisobutylene–maleic an- Antiredeposition
hydride copolymer) Sequestration
Nonionic surfactants (e.g., ethoxylated linear Ink removal All grades 0.2-0.8
alcohols and ethoxylated alkylphenols) Ink dispersion
Wetting
Emulsification
Solubilizing
Peptization
Sodium carbonate Alkalinity Groundwood 2-5
Buffering grades
Water softening Lightly inked ledger
Sodium hydrosulfite Bleach Groundwood 0.5-2
Color strip grades
Some whites
Sodium hydroxide Fiber sewing Wood-free grades 3-5
Ink breakup Groundwood 1-3
Ink dispersion grades
Sodium or potassium phosphates Metal ion sequestrant All grades 0.2-1.0
Ink dispersion
Alkalinity
Peptization
Sodium silicates Peptization Groundwood up to 2
Ink dispersion grades
Alkalinity and buffering Lightly inked ledger
Peroxide stabilization
Solvents (e.g., C12-C14 aliphatic hydrocar- Ink softening Wood-free grades 0.5-2.0
bons) Solvation
Enzymes, in particular cellulases, have also been found to be effective in removing toner ink in mixed office wastepaper.
Often, cellulases are used in combination with surfactants for improved efficacy.
The types of surfactants used in deinking and which are highlighted in this report include:
• Fatty acids (or fatty acid soaps). Fatty acids such as oleic acid and stearic acid are used as collectors of inks in a
flotation system. They are preferred because of their ability to gather inks to make a suitable particle size (30–60
micrometers) in order to remove them from a floater. However, their penetration ability on cellulose is weaker than the
other deinking agents. They also easily form a metal salt with polyelectrolyte metal ions in water to become dirt inside
pipes and vessels.
• Fatty acid polyalkylene oxide derivatives (fatty acid derivatives). These were developed to overcome the
deficiencies of fatty acids and are generally classified as displectors, which work as both dispersants and collectors.
• Fatty alcohol polyalkylene oxide derivatives (fatty alcohol derivatives). Polyalkylene glycols (mainly ethylene
oxide/propylene oxide [EO/PO] alkoxylated fatty alcohols) have been the most popular deinking surfactants since most
newspapers adopted offset printing. Generally, EO/PO alkoxylated C12–C18 alcohols are used. Fatty alcohol derivatives

have a higher hydrophobicity than fatty acids and have a higher penetrative ability on cellulose. Currently this class of
surfactants is the major deinking component in the flotation process.
• Polyoxyethylenenonylphenyl ethers. These surfactants, used mainly in washing, are now minor products in
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disruptor.
• Triglyceride polyalkylene oxide derivatives (fatty oil derivatives). These products had been the most popular
surfactants until offset printing became significant in the newspaper industry. These products were developed as
displectors. Contact Customer Care (customercare@ihs.com) if you have any questions.
• Other. Other surfactants are also used as a component of deinking agent formulations or added to a flotator to increase
bubbles. For example, ethylene oxide/propylene oxide block copolymers, which have low-foaming characteristics, are
suitable in high-foaming wastepaper treatment processes. In contrast, alcohol ether sulfate (AES) is a superior
surfactant used to add bubbles in flotation processes.
The chemicals used in deinking are normally formulations of commodities such as sodium hydroxide, sodium silicates,
and hydrogen peroxide, plus surfactant and chelating agent specialties, dispersing agents/ emulsifiers (nonionic
surfactants) and—in the case of the flotation deinking process—fatty acids or soaps (fatty acid sodium salts), which act as
collectors.
A typical formulation for conventional froth flotation deinking contains 0.5–3.0% sodium peroxide, 0.5–2.0% sodium
hydroxide, 0.3–1.6% soap (sodium oleate), 0.1% dispersing agent, 3.0% sodium silicate, and 0.3% chelating agent (DTPA or
pentasodium diethylenetriamine penta-acetate).
A typical formulation for deinking with combined dispersant/collector systems contains 1.0% sodium peroxide, 1.2%
sodium hydroxide, a maximum of 2.0% sodium silicate, and 0.4–0.8% deinking additive, which is a customer-specific
mixture of fatty acids and nonionic surfactants.
Pulping specialties
The pulping specialties covered in this report include anthraquinone (AQ), tetrahydroanthraquinone (THAQ) salts, and
polysulfides.
Chemical pulping dissolves the lignin of the wood in water via chemical treatment, thus separating it from the cellulose
fibers. Compared with mechanical pulping, longer fibers are preserved, and the resulting pulp has better strength and
suppleness. After bleaching, chemical pulp also has higher whiteness than mechanical pulp. The classical chemical pulping
processes are the sulfite (acid) process and the sulfate (alkaline/kraft) process.
The kraft or sulfate process is the dominant process for the production of chemical pulp. It is based on the utilization of a
leach made of sodium hydroxide, sodium carbonate, sodium sulfate, and sodium sulfide and is far more flexible regarding
the wood types to be treated than the sulfite process (which concentrates on beech and spruce wood). It provides a pulp
with high strength properties, but it has some disadvantages, such as the comparatively low pulp yield, a complicated and
capital-intensive recovery system, and the emission of malodorous substances, mercaptans, and dimethyl sulfide.
Additives can be added to the pulping stage in the kraft-pulping process to increase delignification, such as polysulfide and
AQ, separately or in combination.
AQ is frequently used at soda pulp mills around the world because of yield limitations in that process. But since there are
few soda mills in the United States, little AQ is consumed in the NAFTA region. Similarly in Europe, it is inessential and is
only used to avoid bottlenecks in the pulping process.
In contrast, AQ continues to be utilized in Japan and China. In Japan, AQ or THAQ salts (mainly the disodium salt of 1,4-
dihydro-9,10-dihydroxy-anthracene, which is also called DDA) is used as a catalyst to improve pulp yield in alkaline
pulping. At a use level of 0.05–0.1% based on wood furnish, these products improve pulp yields by 4–5% and also reduce

active alkali and/or pulping times and/or temperatures. Only DDA, which is sometimes referred to as soluble AQ or simply
SAQ®, is used in Japan.
Studies showing the potential carcinogenicity of AQ have put its continued use as a pulping catalyst in jeopardy. The State
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of California includes AQ in theuse Adobe,
list of Chrome,
Proposition or Internet
65 chemicals. Explorer
In Europe, it is noto readincluded
longer this file.
in the BfR-approved
list of chemicals that are allowed for use in food contact.
Enzymes
Contact Customer
Enzymes are biochemical Carehave
catalysts, which (customercare@ihs.com)
been used in many industriesiffor
you have
a long any
time. Thequestions.
pulp and paper industry
historically used mostly mechanical and chemical means for their processes, which led to high energy, water, and
chemical consumption. Pressure from legislation and market forces led to a drastic reduction in energy and water
consumption per ton of paper/board produced. Enzymes provide the possibility to further enhance the efficiency of the
pulp and paper processes, as well as reducing energy and chemical costs. Research in enzymatic processes in the paper
industry has been going on for many years, but it was only since 2005 that enzymes were introduced to large-scale
industrial production.
Enzyme use in the paper industry

Advantages Disadvantages
Mild operating conditions Unstable at harsh conditions
Enzyme “tool box” provides thousands of enzymes Enzymes do not cover every desired chemical trans-
formation
Enzymes can be tailored to a specific task when the Considerable research/ development cost to tailor an
basic properties exist enzyme to a specific task
Enzymes are cost effective It takes multiple trial runs in the pulper or on the pa-
permachine to prove viability
Enzymes are “green, renewable” products Interchange of enzyme supplier is difficult as each
product is different
The following table shows the enzymes, which are currently used in the pulp and paper industry or are close to being
introduced in the near future.

Applications of enzymes in the paper industry
Production
step Added to Enzymea Function Gain
Pulping, mechanical Wood chips reject Cellulase Digest wood fiber
fiberread
Better to yield this file.
pulp
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Pulping, mechanical Recycled wet- Protease Cleavage of polyamide bond of PAE Wet-strength paper can be recyled
strength paper pulp
Deinking Recycled paper pulp Cellulase Digest paper fiber to release ink Increased dirt removal efficiency up to 83%; ppm dirt re-
duced 36% with 0.02% cellulase/amylase
Deinking Recycled paper
Contact pulp Hemicellulase
Customer Digest paper fiber to release ink
Care (customercare@ihs.com) ifIncreased
you have dirt removal
anyefficiency up to 83%; ppm dirt re-
questions.
duced 36% with 0.02% cellulase/amylase
Deinking Recycled paper pulp Cellulase Swell fibers instead of caustic treat- Open pulp/fiber matrix
ment
Bleaching Pulp Laccase Lignin oxidation and enhanced re-
moval
Bleaching Pulp Xylanase Xylan-Hydrolysis and enhanced lignin Less oxidant required, increased brightness
removal
Pitch control Pulp Lipase Hydrolyzes pitch Reduced pitch, increased brightness
Stickies control Pulp Esterase Hydrolyzes glue and controls stickies Stickies count reduced by up to 70%
Container board Chemical Pulp NSSC Enhanced lignin/fiber separation; par- More lignin removed, pulp predisposed to bleaching chemi-
tial hydrolysis of hemicelulose cals, less chemicals needed
Container board Recycled paper pulp Cellulase Increase compression strength
Tissue Recycled paper and Increase tensile strength
softwood kraft pulp
Wet-end Water cycle Cell-wall lytic enzyme Replacement of biocides, reduce Less chemicals needed
fouling of water
Wet-end Stock Cellulase Swelling of fibers, more flexible Enhanced sheet strength and surface properties; enhanced
fibers, less fines washing and refining efficiency; reduced energy consump-
tion; higher throughput; improved process water quality; less
chemicals used
Wet-end Recycled paper pulp Endoglucanase Swelling of fibers, more flexible Enhanced sheet strength and surface properties; enhanced
fibers, less fines washing and refining efficiency; reduced energy consump-
tion; higher throughput; improved process water quality; less
chemicals used
Dry-end Paper Amylase Starch liquefication Reduced viscosity, better surface
Effluent Effluent Peroxidase Remove peroxides Less cost for chemicals in the water loop
Effluent Effluent Catalase Remove peroxides Less cost for chemicals in the water loop
Effluent Effluent Oxidoreductase Delignification, removal of phenolics Improved effluent treatment by anaerobic/aerobic bacteria;
less chemicals needed; reduced AOX value
a. Major component; in many cases an enzyme “cocktail” is used.
Currently, major applications of enzymes are in the pulping steps and wet-end processes of the paper machine.
Enzymatic starch liquidification is a growing dry-end application replacing modified starches to some extent. Further
opportunities for the use of enzymes include the treatment of effluents and by-products generated during the
papermaking process.
The global market for enzymes in the pulp and paper industry is estimated at about $80 million with a projected annual
growth rate of about 3–5% for the next five years.
Processing aids
Biocides
Biocides (fungicides, bactericides, and biostats) are used in a paper mill to prevent the buildup of microbial deposits on
papermaking equipment and in mill processing lines. Biocides are integral components of any total deposit-control plan
for a mill. Paper machine systems are ideal environments for growth of slime-forming bacteria and fungi. Water
temperatures are in the range of 25–60°C, pH ranges are 4.5–9, and an abundant supply of dissolved nutrients such as
starch, sizing, and hemicelluloses encourages the proliferation of a wide range of bacteria and fungi. The total population
and mix of various microorganisms is dependent on seasonal variation, the contamination sources (such as the virgin or

recycled furnish, additives), pH, operating temperatures, and overall system design. Biological organisms found in paper
mill systems can be divided into four broad categories: aerobic bacteria (which survive in the presence of air), anaerobic
bacteria (which survive in environments without air), fungi (including yeasts and molds) and some protozoans, and in
rare instances, algae. Aerobic bacteria and anaerobic bacteria are introduced into the paper mill system via the air, water,
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recycled fiber and untreated machine broke. The most common type of anaerobic bacteria found in paper mills is sulfate-
reducing bacteria. This type of organism is capable of converting sulfate in the system into highly corrosive, foul-smelling
hydrogen sulfide. Fungi are introduced into the system via freshwater. Algae growth is rare in paper mill systems but does
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outdoor transparent holding tanks.
As microorganisms accumulate on machinery surfaces, they form a slime or biofilm. These films are gray, brown, black, or
pink gelatinous masses known as paper mill slime. Problems occur when slime-forming microorganisms (mainly bacteria,
like Enterobacter aerogenes or Bacillus mycoides) become predominant and cause pipeline and filter blockage and lead to
irregular flow of stock. The slime can also deposit on the newly formed sheet, causing staining and weaknesses that may
affect both runnability on the paper machine and quality of the paper thus produced. Most biocides will control problem
microbes when used in low concentrations (i.e., 0.05–0.20 kilogram per metric ton of dry-weight fiber or 0.01–0.1
kilogram per metric ton of paper for typical paper).
The use of recycled wastepaper for furnish and closed-loop water circulation systems increases the introduction and
proliferation of microbes. The most effective way to prevent slime formation is to maintain cleanliness in the entire
papermaking system. However, in most mills, cleanliness is not sufficient to prevent slime formation. Therefore, biocides
are frequently added at various points in the papermaking process. This is critically important when the paper is produced
for food contact or medical applications.
There are two categories of biocides in use in paper mill systems: oxidizing biocides including chlorine, hypochlorite,
hypobromous acid, and chlorine dioxide; and nonoxidizing biocides such as methylene bisthiocyanate, carbamates,
isothiazolines, and quaternary ammonium compounds. Historically, chlorine-based commodity chemicals (chlorine gas,
also known as molecular chlorine; chlorine bleach [sodium hypochlorite]; and chlorine dioxide) served a double role for
pulp bleaching and as biocides. The direct use of chlorine gas in pulp and paper production has been eliminated in much of
the developed world while the use of other chlorine-based chemicals in all aspects of pulp and paper production has fallen
significantly.
The use of oxidizing biocides is seeing a revival in the paper industry with the introduction of haloamine chemistry by
Hercules and further development by its successors Ashland and Solenis. Haloamines are less oxidative than hypochlorite
or chlorine dioxide while being versatile broad-spectrum biocides. Usage of haloamines reduces the amount of biocide
used as well as the amount of other paper chemicals because haloamines cause very little oxidation compared with strong
oxidizing agents. Common haloamine treatment programs are based on generating haloamines such as monochloroamine
(MCA) on-site by mixing ammonium salts (such as ammonium sulfate and ammonium bromide) with bleach. When
properly applied, MCA can replace existing organic biocide programs at a lower cost. MCA is used in recycled board and
brown paper mills.
Higher-value nonoxidizing biocides are added to the wet end (either continuously or as a slug) to prevent formation of
biofilms or slime. Biocides are toxic to microbes at low concentrations (0.05–0.20 kilogram per metric ton of dry-weight
fiber). A shock-addition of biocides two or three times per day is often preferred, rather than maintaining steady high
levels of biocides. This helps prevent the development of microorganisms resistant to the biocides used.
Some of the chemical compounds used in biocides for paper production are listed in the following table.

Most common types of biocides used in
papermaking
2-Bromo-2-nitropropane-1,3-diol (Bronopol)
5-Chloro-2-methyl-4-isothiazolin-3-one (CMIT)
2,2-Dibromo-2-cyanoacetamide (DBNPA)
Glutaraldehyde
Halogenated hydantoin
Methylene bisthiocyanate (MBT)
n-Octyl-isothiazolin-3-one (OIT)
Quaternary ammonium compounds
Tetrakis(hydroxymethyl)phosphonium sulfate (THPS)
The main disadvantage of the widely used MBT is that it hydrolyzes rapidly above pH 8.0 and is deactivated by dissolved
ferric ions circulating in the system. The many alkaline systems now operating under higher pH conditions render this
previously very effective biocide useless. The isothiazolinones, on the other hand, function well under alkaline
conditions. Organic chlorine-containing compounds are not favored whereas organobromine compounds are increasingly
favored because they are faster acting than the organosulfurs and function on bacteria at either an acid or alkaline pH.
(Refer to the SCUP Biocides report for more detailed information on specific products.)
Because of environmental concerns, several nonbiocidal approaches to control microbial deposits have been developed.
These techniques do not kill the microbes, but prevent them from depositing in surfaces, or disperses them once they
become attached. The dispersed microorganisms can then be killed with an oxidizing biocide or ozone. Some of these
nonbiocidal technologies include biodispersants and enzymes.
Biodispersants are anionic or nonionic surfactants, such as anionic lignosulfonates or ethylene oxide/propylene oxide
copolymers. They are frequently added along with, or as part of, a new formulation to help eliminate nonmicrobiological
deposits that accumulate with the slime. Dispersants have little or no ability to remove a biofilm in the absence of
biocides.
Enzymes have been evaluated in both the laboratory and in paper process streams for biofilm control, but are not widely
utilized. Because of changing microorganisms in the paper mill environment, generally a mixture of specific enzymes is
required to effectively control biofilm formation.
Defoamers
Pulp and paper mills use chemical defoamers to prevent excess foaming in process equipment and to break air bubbles
during pulp washing, on the paper machine, in coating operations, and in process water circulation and
wastewater/effluent treatment. The type and amount used by each mill, however, varies greatly depending on point of
use, type of pulp, operating conditions of the mill, and the chemical composition of the defoamer product. It is not
unusual for a single mill to require several different types of defoamers for the different troublesome processing areas
such as pulping, deinking/repulping, papermaking, coating areas, effluent/wastewater treatment, and the closure of water
circulation loops.
All mills consider the elimination of foam a necessity; however, the amount of defoamer used can vary from 0.1 kilogram
per metric ton of product to two kilograms per metric ton of product. Chemical compositions used to reduce foam cover a
broad spectrum, and can contain one or more of the following: silicone fluids, fatty acid amides (e.g., ethylene bis-
stearamide), polyethylene glycols and polypropylene glycols, tallow-type fatty alcohols, fatty acid esters, propylene glycol,
waxes, mineral oils, or natural oils. Most antifoam formulations have a dominant ingredient but blends of ingredients are
very common. Oil-based products are disappearing and ethylene bis-stearamide has lost prominence because of deposit
problems. Silicone-based or fatty amide defoamers are most frequently used in brownstock washers. Alcohol-based or
ester-based products are usually used in paper mills. Defoamers can be oil-based or water-based, but the trend for foam
control in US mills continues to be toward water-based or water-extended formulations. Defoamer consumption has been
reduced in some operations as “deaerators” have become more common. While more typically used in Europe, deaeration
can be done mechanically by cyclone and vacuum air removal from pulp or by chemical means such as by the use of fatty

alcohols in emulsions. Chemical deaerators promote the agglomeration of small bubbles, which in turn substantially
reduces the air content of pulp suspensions.
Pitch- and deposit-control

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Sticky pitch deposits may form at various locations at the wet end of the paper machine. If these deposits enter the
system, they may be incorporated in the sheet which could result in sheet breakage or off-color spots. Historically, the
main source of pitch in a papermaking system was the natural wood resins that remained in the virgin pulp. Now, with
increased levels of recycled fibers as a significant portion of the papermaking furnish, other water-insoluble sticky
materials suchContact Customer
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pitch” and “stickies,” which
contribute to deposit problems. Pitch problems can be minimized by more thorough pulp mechanical washing and
physical screening, but further mechanical removal may not be practical, insofar as the water systems in paper mills are
increasingly closed. Some of the problems caused by the accumulation and deposition of these substances are as follows:
• Inferior quality of the finished product because of pinholes.
• Reduced runnability because of cleanups, breaks, wire blinding, and felt plugging.
• Increased costs for energy.
• Need for replacement of wires or felts, and for frequent cleaning.
• Limitations on the use of secondary fiber.
The most widely used chemical pitch-control method is the addition of pitch dispersants, which can be either organic,
typically anionic material such as naphthalene sulfonates, lignosulfonates, and polyacrylates; or inorganic materials such
as talc or polyaluminum hydroxychloride (PAC). The polymeric dispersants maintain the pitch as a fine dispersion in the
pulp, preventing agglomeration, and potential deposition on the paper machine or the sheet. When inorganic talc or other
adsorbent fillers are added to the furnish, moderate amounts of pitch can adsorb on these materials, producing a nontacky
solid that can be retained in the sheet. PAC is used in the wet end of alkaline and neutral papermaking mills as a pitch- and
deposit-control agent. (This is in addition to PAC’s use as a rosin size fixative and retention-assist.) It is used to control the
white pitch and since it provides a cationic charge that is not lost in higher pH systems, it neutralizes “anionic trash”
charges caused by latex broke. It also does not form insoluble aluminum hydroxide as quickly as alum does.
The chemical agents used to control microbiological deposits (e.g., slime) are discussed separately in the Biocides section;
there is a relationship between these two functional product groups for total deposit control in mill systems.
The following table shows the common sources of deposits and some of the commodity and specialty chemicals most
frequently used to correct the problem. As shown, many deposit-control agents are commodity chemicals.

Traditional deposits in paper mills and corrective chemical controls
Deposit source Chemical treatment
Organic deposits
Adhesives and glue stickies Nonionic surfactants, anionic dispersants (polyacrylates), ad-
sorbent detackifiers (talc and bentonite clay), biodispersants,
Defoamers
Inks dispersants, mechanical screens, ferromagnetic particles, fixa-
tives (alum, sodium aluminate, and cationic coagulant)
Kraft pitch
Latex coatings
Sizes (rosin and synthetic)
Starches
Wax coatings
Wet-strength agents
Inorganic deposits (scale and fillers)
Aluminum hydroxide (from alum) Phosphonate crystal modifiers and polyacrylate dispersant
Barium sulfate blends, dispersants (anionic polyacrylates or lignosulfonates),
Calcium carbonate sequestrants (chelates [e.g., EDTA, DTPA, organic phospho-
nates]), biodispersants
Calcium phosphate
Calcium silicate
Calcium sulfate
Clay
Talc
Titanium dioxide
Source: J. Glazer, “Overview of Deposit Control,” TAPPI Journal, July 1991, p. 72. © 2018 IHS Markit
Among the various adhesive contaminants contributing to the stickies shown in the following table, the most difficult to
remove and most in need of replacement are acrylates.
Major adhesive stickies contaminants found in US recycled papers

Type Application Ease of recyclability
Animal glue Telephone directory binders Water-soluble; not a problem
Block copolymers of SBR Hot-melt address labels and re- Rubberlike, pliable, very difficult to remove
movable inserts
Conventional EVA Hot-melt binding Very difficult to remove with reverse clean-
ers
Natural latex Not a problem
PVAc A problem to remove
Water-based acrylates, VAE Most difficult of all adhesives to remove
The terms interfering substances and anionic trash have been widely used to mean substances that impair the runnability of
the papermaking process and/or impair the quality of the finished product. Broadly, this would include substances that
cause the range of traditional deposits—wood pitch, white pitch, or latex; AKD and ASA size hydrolysis products; and
adhesive and glue stickies. In a stricter sense, anionic trash or interfering substances are dissolved materials that have a
negative charge (hence, anionic trash) and create problems through their interaction with positively charged, cationic
chemicals in the papermaking waters. The interfering substances identified as causing the biggest problems in
papermaking are shown in the following table. They usually interact with any cationic additives (e.g., retention aids,
cationic starches) and form insoluble polymer complexes that do the following:
• Inactivate the additive.
• Impair the additive’s retention.
• Impair drainage on the wire and in the press section.
• Contribute to deposits.

The presence of interfering substances and the resultant deposits is not new to papermaking, but the presence of anionic
trash has significantly increased as a result of greater volumes being introduced via more hydrogen peroxide bleaching and
deinking residuals (i.e., via sodium silicate); increased filler loads (i.e., via polyacrylate dispersants and Ca++ ions); mill
broke and recycled papers (i.e., via the oxidized starch, SB latex coating dispersants, and filler); and increased efforts at
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Typical interfering substances (anionic trash) in

papermaking
Calcium ions Contact Customer Care (customercare@ihs.com) if you have any questions.
Fatty acids
Humic/fulvic acids
Lignosulfonates
Oxidized starch
Polyacrylates
Silicates
Sulfates
Uronic acids
Effective control of the interfering substances may be accomplished by combining mechanical and chemical methods. The
ideal combination is highly specific to the problems of individual paper mills, and depends on the size of the interfering
particles. Generally, particles more than 0.15 millimeter in diameter may efficiently be separated by mechanical means,
smaller particles by chemical methods. Suppliers of paper machines and accessories have put strong emphasis on helping
control these problems by mechanical means. However, for effective control of this problem, it is mandatory to combine
mechanical with chemical methods.
The main methods for the control of interfering substances using chemical additives and their effects are described below.
• Adsorption. The interfering substances are adsorbed on the surface of micronized talc or filler and deposited on the
paper. The main adsorbents are micronized talc and bentonites; addition levels are about 1% (based on fiber). By
combining micronized talc or bentonites with dispersants, the adsorbing efficiency can be improved.
• Dispersion. Better distribution or pickup of interfering substances in water. A disadvantage is the progressive
concentration in closed circuits. Dispersing agents are nonionic surfactants (ethoxylates and propoxylates), or surface-
active condensation products of naphthalenesulfonic acid and formaldehyde; addition levels are 0.1–0.2% (based on
fiber).
• Fixing. The interfering substances are fixed to fibers or fillers with the help of cationic fixing agents and remain in the
paper. Tailor-made cationic polymers are very effective for fixing interfering substances because they reduce the
tendency of adhesive, hydrophobic substances to agglomerate and slow the rate at which secondary stickies are formed.
Nonionic, adhesive, and lipophilic substances can be maintained in a finely divided form, and can be made to absorb on
fibers, fines, and fillers and to be removed along with the paper.
The products used for fixing interfering substances include highly cationic polymers like poly-diallyl-dimethylammonium
chlorides (poly-DADMACs), polyamines, or polyvinylamines. Specialized companies in this field such as BASF or Buckman
Laboratories also supply multicomponent systems—combinations of polymers and adsorbents—that are tailored to fit the
needs of specific customers.
Retention and drainage aids

In wet-end papermaking, formation of the web begins with the retention of suspended particles on the machine wire. The
retained material has to drain efficiently. About 40–60% of the water is removed by free drainage and vacuum suction on
the wire and the rest through pressing and drying. Simultaneously, a sheet with acceptable formation properties and
sufficient mechanical strength has to be produced. Poor retention gives rise to problems from variable sheet quality (in
subsequent sizing, color, two-sidedness, and strength properties) to process-related problems (high consumption of

chemicals like sizes, dyes, and wet-strength resins), increase in sheet breakage, deterioration of process-water quality, and
poor effluent quality (high treatment and sludge disposal costs).
Retention aids work by reducing the negative anionic surface charges on the fillers, fibers, and fines, and by forming
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fillers into the pulp mat and prevent them from being drained away with the water as the pulp slurry moves along the wire
screen under suction. Chemicals commonly used by the paper and paperboard industry to improve retention and drainage
include:
• Cationic polyacrylamide.
• Anionic polyacrylamide—most effective in the presence of alum.
• Dual-polymer systems that incorporate an anionic polyacrylamide and polyamine or poly-DADMAC.
• Microparticle systems containing an inorganic colloid such as anionic colloidal silica, bentonite, or polysilicate microgels
plus cationic starch or polyacrylamide.
• Micropolymer organic flocculants that drain rapidly like the inorganic microparticle systems but use no inorganic
colloid and are a uniform polymeric emulsion.
• Cationic starch—multifunctional and can be potato- or corn-derived (further discussed in the Dry-strength additives
section).
• Cationic polyethyleneimine—highly cationic and a strong retention aid.
Paper is formed from a very dilute pulp slurry (about 0.5% total solids) and it is important that the fillers, fibers, fines, and
chemical additives remain in the fiber mat and are not lost with the water as it is drained from the web while on the wires.
To maximize the retention of fillers, pigments, dyes, sizing, and short fibers, polyelectrolyte retention aids or retention
systems are added to the pulp slurry at the wet end of the papermaking machine. In simplified terms, these polymeric
cationic materials are attracted to the anionic cellulose fibers and cause the fibers to flocculate. The flocculation causes the
pulp web to entrap the fillers, additives, and short fibers. The greater percentage of the pulp and additives retained in the
final paper gives a greater yield of paper from pulp. Additionally, trapping stickies and other contaminants is actually
preferred since the problem of removing them from the white water is then significantly reduced.
Polyelectrolyte retention aids also improve sheet uniformity and dry-strength characteristics of paper and are variously
referred to in the paper industry as retention aids, flocculants, sheet formation aids, and dry-strength additives,
depending on their primary function. Since all these additives influence retention, the total retention “system” is really
more than simply the polymeric retention aid. Polyelectrolytes are used in the range of 0.01–0.2% of the weight of the
fiber. They are normally incorporated into the furnish as an emulsion after the high-shear mixing stage to prevent polymer
degradation. Increasing the pH will swell some of the polymers, enabling them to trap more fines and fillers and increase
their efficiency as retention aids. The point of addition, type, and amount of polymeric retention aid are very important
and can be very specific to an individual mill depending on the type and amount of filler, recycled content, sizing, pH, and
so on.
Process improvements in retention and drainage have focused on using microparticle systems, such as an anionic colloidal
silica or bentonite with a single polymeric cationic flocculant or dual polymer aid. They have found increasing use in paper
and paperboard mills primarily because of increasing filler levels and a higher percentage of smaller recycled fiber fines
now in the furnish. Microparticles are also used more because of the increased attention on closed-loop water systems,
their improved distribution of furnish components, and the need for additional strengthening because of higher machine
speeds. The microparticle products are commonly used in alkaline papermaking mills because the colloidal silica or
bentonite enhances retention by forming strong ionic bonds with additives and by forming microflocs. Fine printing- and
writing-grade paper mills running alkaline were the primary users of the microparticle products but they are now widely
used in linerboard, lightweight tissue, coated grades, sack kraft, super-calendered papers, and newsprint mills.

The most preferred polyelectrolytes that function as retention and drainage aids are polyacrylamides and polyamines.
Most paper mills use cationics although some combinations with anionics give better sheet formation and runnability in
some mills. The molecular weight of the polyacrylamide or copolymer acrylamide resin can range from millions to tens of
millions. The molecules are long, straight chains as opposed to polyethyleneimine (PEI), which has much shorter,
branched chains and isPlease use Adobe,
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of 0.1–0.5 file. per metric ton of
kilogram
paper. The dosage of polyacrylamides has increased because of the larger quantities of fillers used in the manufacture of
certain types of paper. The products are provided as liquids, solids, and emulsions/dispersions. The single-polymer
retention aids are very pH sensitive and their effectiveness can be diminished by changes in the furnish chemistry.
Small amounts of PEI are used as the cationic polyelectrolyte in paper manufacture in Western Europe, and North
America. It is reportedly a strong retention aid and can be used both as the sole polyelectrolyte or in a dual-polymer
system. Its primary use is in newsprint. Improved drainage is reportedly a result of its use.
Similar to PEI are the poly-DADMACs, which are used to neutralize the “anionic trash” negatively charged substances
originating from coated broke machines, and as a total retention system.
Polyethylene oxide (PEO) is a noncharged polymer and only the very-high-molecular-weight product is effective as a
retention aid. It can be used in mechanical pulp–containing furnishes (especially newsprint) and in some groundwood
specialties. It is often combined with a phenolic resin.
BASF also introduced an entire class of polymers, the polyvinylamines, which it markets under the brand name Luredur®.
These polymers have cationic and highly reactive primary amine groups, which bond with the fine particles in the fiber
suspension, leading to good drainage and improved strength. The bonding strength between fibers and particles and
therefore the fixing performance of polyvinylamines can be controlled by a wide choice of molecular weights, cationic
charge densities, and hydrophobic functional groups.
Polyaluminum chloride, like alum before it, performs a number of functions in papermaking. In addition to the
neutralization of anionic trash charges from latex and other contaminants, sticky deposit control, and neutral rosin size
fixing, it also improves retention and drainage. As a quasi-commodity, it is not analyzed in this report.
A prevalent practice in papermaking has been the use of proprietary dual- and multicomponent retention systems.
Dual-polymer retention systems consist of low-molecular-weight, high-charge-density cationic polymers—branched, if

possible—(e.g., polyamines, polyacrylamides, polyamideamines, polyvinyl-amines, PEIs) that are added to the stock prior
to the addition of high-molecular-weight, low-charge-density anionic or cationic polymers such as modified starches.
These two materials must react with each other on the fiber surface to produce flocculation. Addition levels are around
0.5–0.8 kilogram each per metric ton.
Microparticle/polymer retention systems tend to give better retention, drainage, formation, and two-sidedness than
conventional polymer retention systems. The small, tight filler flocs that form with the aid of microparticle retention aids
and that absorb strongly to the fiber furnish components create a more uniform sheet structure. The microparticle
flocculant system also allows for the cleanup of the white-water loop by effectively retaining the suspended and dissolved
solids including fillers and wood fibers. The first two commercial microparticle systems used colloidal silica in combination
with cationic starch and bentonite or montmorillonite in conjunction with cationic polyacrylamides. Both systems are
anionically charged. Microparticles are used in conjunction with natural or synthetic polymers. These systems form flocs
that are partially reversible after shear and give rise to high fines retention and efficient dewatering. Simultaneous
improvements in retention, drainage, and formation are achieved, and (in systems using starch) dry strength is increased.
The microparticle systems currently used are:
• Colloidal silica/cationic polymer (polyacrylamide and starch) systems. AkzoNobel/Eka Chemicals developed these
systems under the name Compozil™. The first system was introduced in 1980 and the product line has gone through
many generations over time. Typical application levels are 0.1–0.5 kilogram polyacrylamide, 5–10 kilograms starch, and
4–6 kilograms silica sol or 2–4 kilograms nanoparticle dispersions per metric ton of paper.

• Bentonite/cationic polymer systems. Ciba Specialty Chemicals (now part of BASF) developed the Hydrocol® system,
in which a high-molecular-weight cationic polyacrylamide is added (about 0.4–1.0 kilogram per metric ton of paper)
prior to the addition of a high-swelling bentonite (with a surface area of 200–500 square meters per gram, added at a
rate of 2–3 kilograms per metric ton of paper).
• Phenolic resin/polyethylene oxide retention systems. Low-molecular-weight nonionic phenolic resins are added to
stock prior to the addition of high-molecular-weight nonionic polyethylene oxide. Addition levels are approximately
1.5–3 kilograms of phenolic resin per metric ton of paper, followed by 0.5–0.75 kilogram of PEO. This system is
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wood- (lignin-) containing
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• Polyacrylamide in coagulant matrix system. Kemira developed KemForm/Fennosil™, which has found large
application in the production of fine paper on high-speed machines.
The retention systems mentioned above, while highly effective, have a higher cost than the single-component systems.
However, these combined microparticle/polymer retention systems, and specifically Compozil™ (AkzoNobel) and
Hydrocol® (BASF) are used globally.
In general, the prevailing trends in papermaking—greater use of fillers, recycled fiber, and high-yield pulp—result in
higher levels of interfering substances and fines in the white-water loop. Faster machine speeds increase turbulence and
tend to reduce the retention of the poorly flocculated suspensions. Closed water circuits in paper machines increase the
levels of fines and soluble materials at the wet end, impairing the process-water quality. Consequently, the use of more
effective retention technology has increased significantly.
Dry-strength additives
Dry and wet-web strength is of primary importance in the paper industry because of the growing content of recycled
paper in furnish (resulting in a corresponding decrease in fiber length) and increased filler loadings.1. *
Dry-strength additives are used in paper manufacture to increase fold and tensile burst strengths by enhancing bonding
between the fibers. The added strength resulting from use of such additives also allows the fiber content of paper to be
decreased and the filler level to be increased, thereby increasing the overall yield of paper from pulp. As dry strength is
increased, the thickness of the paper can be reduced, an important economic factor in publication-grade papers (e.g., for
magazines and advertisements). Some examples of dry-strength additives used in paper making are shown in the
following table.
Dry-strength additives used in papermaking

Natural Examples
Starches and modified starches Amphoteric corn starch, cationic corn and potato starch
Vegetable gums Guar gum, locust bean gums
Modified cellulose Carboxylatedmethylcellulose (CMC)
Synthetic
Polyacrylamides
Polyvinylformamide/polyvinylamine
Polyvinyl alcohol
Specialty starches are used to impart many properties to paper, including dry strength and retention. Historically, wet-end
starches have been used as strengthening and retention aids for fines and fillers. The largest-volume dry-strength additives
used are cationic corn starch, cationic potato starch, and amphoteric waxy maize corn starch. These cationic specialty
starches improve dry strength and sheet formation by modifying the charge of the anionic cellulose. They do not compete
1.
Even though most modern paper machines use felts to support the 65%-plus-water-laden paper web as it leaves the wire, the web is a fragile structure that needs wet-web
strengthening. Most dry-strength additives—as well as wet-strength and formation aids—assist in wet web strength.

directly with the synthetic polyacrylamides (PAMs) and polyamines that have a primary function as retention aids (see
the previous section), but do compete with some acrylamide copolymer products that are utilized almost solely for dry-
strength purposes. Most cationic starches are sold with 12–13% moisture content, although as high as 18% moisture
content is sold by some suppliers of cationic potato starch. The cationic starches are produced by reacting the starch with
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compound.
The PAM resins used for dry-strength applications are mostly cationic. The nonionics do not remain on the paper web
because of their lack of charge. The cationic resins are directly substantive to fiber and are similar in function and chemical
composition toContact Customer
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liquids ranging in concentration from 10–20% active content. Solid forms are available, but are not widely used.
Dry-strength additives are either added to the stock (1.0–1.5% on fiber) or surface-applied (maximum 3 grams per square
meter). Usual addition levels for specific products are 0.5–1.5% (on fiber) for cationic starch, 3–4% anionic starch in wet-
end applications, 0.1–0.5% (on fiber) for anionic polyacrylamide, and 0.5–1.0% (on fiber) for carboxymethylcellulose.
To enhance cost/performance, different additives maybe combined (e.g., anionic starch or CMC with cationic PAM or
polyvinylamine; and anionic PAM or PVF with cationic polyvinylamine).
Dyes, pigments, and fluorescent whitening agents

Dyes are used in a variety of colored papers, including tissue, packaging paper, business forms (multicolored copies),
construction paper, telephone directory yellow pages, and fine papers. A dye must have a high affinity with paper so that
losses of these expensive products to the white-water system and recycling are minimized. Another important use is for
tinting natural papers to compensate for their slightly yellowish color by using violet and blue dyes.
Back when paper was first colored, natural dyestuffs such as cochineal, indigo, and sandalwood were used. Today,
practically all colored paper is dyed with synthetic dyestuffs. Fluorescent whitening agents (FWAs), also known as optical
brighteners, are second only to direct dyes in importance as colorants. Some synthetic organic pigments are also used.
Commodity inorganic pigments are not included in this report. The most important dyestuff classes used in paper dyeing
include direct dyes and basic dyes. Other dyes such as acid and solvent dyes have limited use.
Direct dyes (anionic and cationic) are the dyes most frequently used to dye paper. Direct dyes have excellent affinity with
cellulose and have superior lightfastness compared with acid or basic dyes. They function over a wide pH range (usually pH
4.0–9.0) and are used extensively for tissue, absorbent, blotting, and fine papers. They work well on alkaline-processed
fibers.
Cationic direct dyes were developed specifically for the paper industry. They are similar to anionic direct dyes but have
cationic or positively charged groups instead of negatively charged sulfonic acid groups. The cationic groups form ionic
bonds with the negatively charged bleached cellulose. Consequently, this dye class exhibits excellent affinity with
bleached cellulose. These dyes provide almost 100% dye retention (as opposed to 70–85% retention for anionic direct
dyes), have good-to-excellent bleed-fastness properties, exhaust extremely rapidly (1–2 seconds as opposed to 15 seconds
to up to several minutes for anionic dyes), and are environmentally advantageous. Cationic direct dyes have excellent
color fastness and are used in all color ranges. Cationic direct dyes are used in paper toweling, napkins, cards, tissue, binder
boards, and photographic paper.
Basic dyes are the dye class usually used for dyeing unbleached pulp or mechanical pulp for wrapping paper, kraft paper,
boxboard, newspaper, and inexpensive packaging papers. They are the brightest class of color and are fixed to the fibers
through ionic bonding to negatively charged lignin (a noncellulosic part of unbleached pulps and groundwood). The use of
recycled paper has a positive effect on basic dye consumption.
Synthetic organic pigments believed to be used by the paper industry include azo compounds (e.g., Pigment Red 3), lakes
(e.g., Pigment Red 81), and phthalocyanines (e.g., Pigment Blue 14). These pigment products are water insoluble.
Pigments have no direct affinity with the cellulosic fiber and are retained either by mechanical entanglement or a
synthetic retention aid.

All dyes for paper, with the exception of pigment preparations, are water-soluble products. Dyes are supplied in the
following forms:
• Liquids, which represent the bulk of the dyes supplied to the paper industry. These products allow major savings in labor
Please use
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easily metered and
pumped directly from their containers. This permits easy checking and correcting of color and also allows fully
automated operations using process control systems. Virtually all of the direct and basic dyes are supplied to the paper
industry in liquid form.
• Granulates, which are obtained by atomizing solutions or suspensions. They exhibit very good solubility and are largely
nondusting. Standardizing agents are principally dextrine, Glauber’s salt, and dispersants. They are very suitable for
batch dyeing of paper.
• Powders, which are made of dried and ground press cakes. This is the simplest and cheapest form, but solubility and
dusting have been problems in the past. These problems have been solved by delivery in water-soluble, repulpable bags
that typically contain 15 kilograms of powder. Only the small-volume acid dyes are supplied predominantly as powders.
Fluorescent whitening agents (FWAs), also known as optical brightening agents, are a significant product group for the
paper chemicals industry, and are used to increase the apparent whiteness of paper. Such materials, added to the furnish,
in the size press, and in coating operations, are in themselves colorless, but absorb light in the ultraviolet region and
reemit it by fluorescence in the blue to blue-violet portion of the visible spectrum. This compensates for the yellowish
appearance of paper. FWAs actually do increase brightness. They are mostly derivatives of diaminostilbene disulfonic acid
and these optical brighteners are being used in the detergent and textile industries as well.
Tetrasulfostilbenic derivatives are the principal group used. They are added to stock, applied on the size press or added to
the coating formulation. Tetrasulfo FWAs have adequate affinity with fibers and are compatible with starch and alum.
Hexasulfo FWAs—owing to their low affinity with fibers—are only used in surface applications to obtain maximum
whiteness. Typical addition levels are 0.1–0.4% for furnish or 26 grams per liter for coating formulations. FWAs have
increased in popularity along with the recycling increase. In order to turn gray recycled pulp “white,” more whitening
agent must be used than with new wood pulp.
Pigment binders
Numerous grades of coated paper and paperboard, each with specific end-use performance requirements, use a binder
system to cement pigments together and onto the surface of the preformed web or board. The ultimate goal of pigmented
coatings is improved printability and print quality. In addition to the primary binding function, pigment binders function
by contributing to final gloss, brightness, opacity, smoothness, strength, water resistance, ink holdout, printability, visual
appearance, and flexibility or inflexibility of the final composite coated product.
Paper coatings are applied as coating colors, which are aqueous slurries containing 35–65% by weight solids. There are
three main components of the solids: pigments, binders, and minor additives. The pigment is the primary component of a
paper coating and consists of small, white, particulate material. Pigments usually are mineral, for example, clay, calcium
carbonate, or titanium dioxide. The packed pigment particles fill pitted areas of the rough paper surface, thereby providing
a suitable surface for printing. Binders are the resins or polymers that function as the glue that binds the pigment particles
to each other and to the paper substrate. The level of binder is low in a paper coating, typically 5–30 parts by weight per
100 parts of pigment. (This low level of binder distinguishes paper coatings from paints, which are pigment-filled polymer
films.) Minor additives are used to modify the properties of the coating color, primarily before and during the coating
operation.
There is no single universal binder system in use, as there are different requirements from the various grades of coated
paper and board, and cost/function considerations. Other factors that contribute to the choice of a binder (or combination
of binders) include the printing process to be used; cost of competing binders; machine runnability; aesthetics; pigment
type and particle size; water, oil-based, ink-jet, or toner performance; and composition of the base furnish at individual
mills.

The general functional requirements for a binder system are given in the following table.
Paper and paperboard pigment binder functions

Adequate wet-rub resistance Please use Adobe, Chrome, or Internet Explorer to read this file.
Availability
Coating viscosity stability
Colloidal stability
Compatibility with other binders in the formulation
Compatibility with the various pigments involved
Controlled ink receptivity
Correct viscosity-solids relationships
Gloss
Good color
High pigment-bonding strength
High water-holding ability to control binder migration
Plasticity to prevent dusting
Rheology considerations
Strong filming properties
Varnish holdout
Source: Robert L. Kearney, “Starch Binders in Coatings,” TAPPI Coating Binders Short Course, Boston,
Massachusetts, May 1990. © 2018 IHS Markit
Most binder systems are latex/starch combinations, although all-natural and all-latex systems do exist. The variety of
binder materials and pigments available to papermakers is shown in the following table. Most of these products are
considered commodity chemicals but some have specialty chemical status because of their functional performance,
required degree of coating knowledge, technical service associated with their end use in mills, and price.

Typical binder system components used in
papermaking
Adhesive binders
Synthetic latex Natural products
Acrylics Animal glues
Polyvinyl alcohol Casein protein
Styrene-butadiene Hydroxyethylated starch
Vinyl acetate polymers Natural gums
Pearl starch
Soy protein
Pigments and extenders
Pigments Extenders
Calcium carbonate Aluminum trihydrate
Delaminated clay Fine calcined kaolin
Gypsum Sodium aluminosilicates
Kaolin clay
Plastic pigments
Satin white
Talc
Titanium dioxide
Other additives
Coating lubricants
Dispersants
Insolubilizersa
Rheology aids
Synthetic silicas (particu-
larly for ink-jet printing
paper coatings)
Thickeners
Water-retention agents
a. Binder insolubilizers are cross-linking agents that make the surface of coated paper more water-re-
sistant. They are frequently referred to as starch insolubilizers. See the Specialty coatings section for
more information.
A large variety of additives are used in paper-coating colors, primarily to modify the physical properties of the colors. At
high solids concentrations in water, mineral pigment particles tend to associate and form viscous pastes. Dispersants are
used to prevent this and to provide low-viscosity slurries. Common dispersants include polyphosphates and sodium
polyacrylate. Various water-soluble polymers are added to coating colors and act as water-retention agents and rheology
modifiers.
Hydrophilic polymers function as water-retention aids by preventing premature dewatering of the coating color after it
has been applied to the paper but before the paper has been dried. Water-soluble polymers (e.g., carboxymethylcellulose,
hydroxyethylcellulose, guar gum and derivatives, and sodium alginate) improve the rheological properties of coating
colors and help keep the colors on the surface of the paper rather than soaking into the sheet. Lubricants are added to
coating colors to improve the lubricity of the wet coating color and to improve the properties of the dried coating. In
particular, lubricants prevent sticking of the dry coatings to surfaces of calenders. Common lubricants include calcium
stearate, fatty acid esters, sulfonated oils, and wax emulsions.
The major types of synthetic binders that are used for paper pigment binding are carboxylated styrene-butadiene latexes,
styrene-acrylate copolymers and modifications, and polyvinyl acetate homo- or copolymers. Styrene-butadiene latex is
the largest-volume synthetic binder for coated paper, and polyvinyl acetate or vinyl acetate/n-butylacrylate emulsions are
the primary synthetic binder types used for coated paperboard. The synthetic binders are all supplied as aqueous latex
products with 50% active solids content. They have become popular in the paper mills because of their low viscosity and
their ability to increase the coating solids content, which contributes to ease of handling, faster drying, and greater gloss.
Another advantage of these synthetic binders is their quality consistency.

Sizes
Sizes are used in and on paper and paperboard, primarily to make the products more resistant to water and other liquids
and to control the spread of inks. Other properties and functions affected by sizing include porosity, dimensional stability,
strength, coefficient of friction,use
Please nesting, and brightness.
Adobe, Chrome,Most paper and
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sized, but products such
as toweling, tissues, and blotting paper are typically unsized, since they must absorb water. Sizes added to the furnish
before sheet formation are internal sizing agents, whereas those added after sheet formation at the size press or during
calendering are surface sizes.
The increase inContact

the volumeCustomer
and types Care (customercare@ihs.com)
of synthetic surface sizes consumed byifthe
you have
paper any questions.
industry was mainly because of
chemistries required for harder-to-size pulps (secondary fiber); higher filler loadings, which increased the amount of
internal size needed; and multiple-color and ink-jet digital printing technology, which required better and more size on
the surface for high resolution and water holdout. Strength and surface application to reduce chemical costs are also
important factors.
As shown in the following table, a variety of materials including commodities and specialty chemicals are used as sizing.
The largest-volume internal sizes are acid rosin, AKD, and ASA. Surface sizes are used in conjunction with internally added
size and additionally function to smooth out the surface of the paper, eliminate lint and fuzz, and reduce porosity.
Common paper sizing materials

Internal size Surface size
Alkenyl substituted AKD Animal glue
Alkenyl succinic anhydride (ASA) Ethylene–acrylic acid (EAA)
Alkyl ketene dimer (AKD) emulsion Gelatin
Anionic dispersed rosin Modified starches (hydroxyethylated mostly)
Cationic dispersed rosin Pearl starch
Dry rosin soap Petroleum wax emulsions
Fortified fluid rosin Polyacrylamides (PAM)
Paste rosin Polyurethane resins (PUR)
Styrene-acrylic emulsions (SAE)
Styrene-acrylonitrile acrylics (SAA)
Styrene–maleic anhydride polymers (SMA)
The synthetic surface sizes function particularly well with neutral or alkaline base sheets and are being used more on
papers that are likely to be printed with ink-jet (aqueous-based) technology and multiple color printing. Surface sizing
functions by providing good film forming (reduces linting and dusting), improves the internal sizing, allows recycle
content to increase, provides surface strength, and surface smoothness for printability with color.
Alkaline papermaking has led to the widespread use of cellulose-reactive internal sizes. The two different types of
commercial synthetic products are AKD and ASA. Both have a reactive end that binds to the cellulosic fibers and a
hydrophobic tail that contributes to water repellence. In alkaline operations, the medium is more neutral or alkaline
because of the buffering of the precipitated calcium carbonate (PCC) which drives the pH toward neutral or alkaline
conditions. The optimum pH for ASA is 6.5–8.5, and for AKD, 7.0–9.0. Rosin-alum sizing occurs in an acidic medium (pH
3.5–5.5) because of the naturally occurring resinic acids present in wood. Hence the terms alkaline or neutral sizing
generally imply the use of AKD or ASA, although dispersed “neutral” rosin sizing is also available.
ASA and AKD internal sizes are used with fillers such as PCC. High filler levels (as much as 25–30%) are possible since
sheets made under alkaline conditions are significantly stronger than acid sheets. Increasing the PCC filler level, however,
also results in increased demand for size because of the increased surface area and porosity of the filler that must be sized,
and the otherwise lower retention of the filler relative to the fiber. The increased amount of shorter, weaker recycled
fibers has also unfortunately resulted in increased use of synthetic internal sizing agents. Also, internal sizing is sensitive
to various contaminants that interfere with the performance of the sizing agent (thus also increasing consumption
unnecessarily). A fatty acid soap left over from deinking pulp, for instance, will decrease sizing effectiveness 10–20% and a

polyalkylene oxide surfactant can decrease sizing effectiveness as much as 40–50%. Partial solutions to excessive
consumption of ASA and AKD with high filler levels include:
• The incorporation of ground calcium carbonate (GCC) as part of the filler loading.
• The greater use of surface rather than internal size to diminish the dusting and improve the printability of ink-jet or
four-color ink papers.
AKD is sold as Contact

a 10–15% stable wax and
Customer water(customercare@ihs.com)
Care emulsion that is metered directly into have
if you the furnish. AKD is prepared
any questions.
commercially from stearic acid. AKD forms a harder size than ASA and is also used as a synthetic surface size, to a limited
extent.
A shift from AKD to ASA at uncoated free sheet mills began around 1990–92. ASA is made from C18 alpha-olefins and
maleic anhydride. It is emulsified in the paper mill with cationic or waxy maize starch or a cationic polymer. It is still
extremely fast-reacting and needs to be used very soon after being emulsified or it loses all its sizing effect. It provides
rapid on-machine-cured sizing. ASA sizes do not develop hard sizes as well as AKD does, which is important in paperboard
grades. ASA is not used as a synthetic surface size.
Polyaluminum chloride (PAC) is used to set internal, dispersed rosin sizing under neutral or slightly alkaline/basic pH
conditions, replacing the aluminum sulfate (alum) used in the lower-pH levels of mills using acid sizing. PAC is
multifunctional and significantly aids in controlling anionic trash, preventing barium sulfate deposit formation (which
provides a nutrient for bacteria growth and foul-smelling hydrogen sulfide generation), helping to retain pitch during
sheet formation and enhancing retention and drainage. It is not a sizing agent itself but is mentioned here because of its
use in conjunction with the neutral dispersed rosin internal size.
Polyvinyl alcohol functions as a surface size, pigment binder, carrier, and barrier coating fluorescent whitening agent. In
this report, it is included with pigment binders although much of its use is due to its contribution as a synthetic surface
sizing agent.
Styrene–maleic anhydride (SMA) and several other polymer resins are synthetic surface sizes that are applied at a size
press and enhance the film-forming ability of starch without sealing the surface totally. Benefits include good ink holdout,
reduced dusting and linting, and significantly improved printability. Surface sizes reduce the amount of internal size
needed.
Large volumes of modified specialty starches are used as paper surface sizing. The most important is hydroxyethylated
starch, but oxidized corn starch is also used in surface sizing applications. Hydroxyethylated starches are particularly
useful for providing a uniform film. When used internally, starches serve to increase burst strength, tensile strength and
stiffness, and improve the paper finish. When used as surface size, they improve gloss, increase ink holdout, seal the pores,
and improve the overall quality of the paper at a reasonable cost.
Rosin emulsion sizes can be classified into two types. One is the size that is used under acidic conditions that replaced
rosin soap size because of its easy handling. Most newsprint papermakers use rosin emulsion size in acidic conditions,
though this has been changing rapidly in recent years. Another is a size that is used under neutral pH conditions together
with calcium carbonate for the production of plain papers for computer printouts. Acidic rosins (including weak acidic) are
used mainly in paperboard production. Neutral rosins are used in the production of almost all fine and coating base papers,
including paper for copiers, laser printers, and ink-jet printers.
Specialty coatings
Additional barrier properties are required beyond those provided by the coating binder system. Typically these are
additional topcoats for water resistance and grease and oil resistance. Polyvinylidene chloride, fluorochemicals
(fluorosurfactants), polyethylene, and paraffin waxes are the most commonly used materials, although silicones
(especially for release papers), insolubilizers and epichlorohydrin resins are also used for surface treatments.

Silicones are the largest product group included in this category. Silicone fluids coat release paper used as a backing for
pressure-sensitive adhesive labels and tape. Additionally, silicone-treated release paper is used as a wrap for extremely
sticky substances such as asphalt and uncured rubber. The fluids give paper a water-resistant or water-repellent finish.
Although the silicone fluid may be relatively expensive compared with more conventional polyethylene or waxes, the
silicones are effective Please use Adobe,
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are also reportedly this as
file.
a specialty surface
coating for copier paper to aid in the production of a hard, smooth surface.
Fluorochemicals are also included in this category. To improve packaging appearance, pet food cartons and bags require a
product that isContact Customer
treated (top and back) Care
with a (customercare@ihs.com) if you
fluorochemical copolymer to resist have any questions.
the penetration of grease and oil. The
fluorochemicals that are best suited are characterized by a long perfluorocarbon chain attached to either a functional
group or a polymer backbone. Suitable fluorochemicals include fluorochemical copolymers and fluorochemical
phosphates; the latter are the most commonly used, since they are approved by the US Food and Drug Administration for
direct-food-contact packaging. These products, provided as 33% by weight solids solutions in water with an organic
cosolvent, can be retained efficiently by the use of cationic retention aids. Although fluorochemicals provide excellent oil
and grease resistance, they do not provide sizing against aqueous penetrants. When both oil and water resistance are
desired, the fluorochemical phosphates usually are used with AKD sizes. Fluorochemical coatings are also used for candy
and baking packaging, fast-food wrappings, snack foods, margarine, and other packaging of oily contents. The
fluorochemicals are expensive and consequently used only in special applications. The efficiency of the fluorochemical is
enhanced by the use of polyvinyl alcohol in the binder systems.
Wet-strength resins
Wet-strength resins increase the ability of paper to hold together when wetted with water or exposed to moist or humid
conditions. For certain paper industry products, they are critical papermaking additives because products made without
them lose 95% of their original strength when wet.
Paper and board products utilizing wet-strength

resins
Tissue products
Doilies
Facial tissues
Industrial wipes
Paper napkins
Paper towels
Toilet tissue
Unbleached paperboard
Corrugated box linerboard
Fiber boxes
Fiber drums
Folding cartons
Pad backing
Poultry boxes
Produce boxes
Other papers/board
Beverage cartons (beers, soda, other liquid packaging)
Certificate papers
Currency papers
Giblet papers
Juice cartons
Maps
Milk cartons
Unbleached kraft grocery bags
Wet strength is necessary in corrugated boxes used to ship wet vegetables such as lettuce or cold/iced products such as
meat, fish, and poultry, and in beverage, milk, and juice cartons. Almost any thermosetting resin that is compatible with

cellulosic materials can be used either as a permanent or temporary wet-strength agents. Polyamide-epichlorohydrin
resins and urea-and melamine-formaldehyde resins impart permanent wet-strength properties to paper, while
glyoxal/acrylamide polymers provide strength to paper for only a defined period of time. Both urea-formaldehyde (UF)
resins and melamine-formaldehyde (MF) resins used to dominate the permanent wet-strength class of papermaking
Please use Adobe,
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caused to be
their use to read thisout
phased file.
in papermaking in the
1990s. Also, under an alkaline papermaking pH, formaldehyde-based resins do not function as they require an acid pH to
cure. Thus, they are no longer used in NAFTA, Japan, and Western Europe. They are still used in China, although the
polyacrylamide-base resins are gaining in importance there.
Temporary wet strength is essential in those paper products that are generally disposed of after brief use, such as napkins,
paper towels, tissues, diapers, and disposable hospital gowns or sheets. Cationic polyamide-epichlorohydrin resins and
glyoxal resins (glyoxal reacted with polyacrylamide copolymers and DADMACs) are frequently used as temporary wet-
strength additives. The glyoxal resins provide both wet and dry strength, and allow the use of increased levels of weaker
fibers. The wet strength is unique in that it gradually decays on soaking the paper in water. This has become an important
factor when considering repulping many of the corrugated cartons found in the wastepaper stream.
Other wet-strength resins available to the paper industry include PEIs, polyvinylamine, polyisocyanates, and dialdehyde
starch. However, they are of limited use because of unfavorable cost-performance reasons compared to the more common
wet-strength resins.
All wet-strength resins are electrolytically attracted to and fixed onto the hydrated cellulose fibers in the slurry. After the
resin-containing web has been formed, it is dried and calendered at temperatures that cause the resin to cross-link,
thereby providing the added strength.

Specialty paper chemical markets
World summary
The estimated 2017 global valueuse
Please of specialty
Adobe,paper chemicals
Chrome, consumption
or Internet was $15.2
Explorer to billion.
read thisChina was the largest
file.
consumer with $4.5 billion or 30% of global consumption. The European market was valued at roughly $3.4 billion and
represented 22% of total consumption. NAFTA accounted for $3.3 billion or 22% of the total. Japan, the rest of Asia,
Oceania, and Central and South America consumed another $4.0 billion worth of specialty chemicals. Consumption data
for the various specialty paper chemical classes are shown in the following table.
World consumption of specialty paper chemicals—2017
Central Other
and Asia
South and
NAFTA America Europe Japan China Oceania Total
Pulp and fiber treatment chemicals
Bleaching specialties 69 3 63 2 79 4 220
Deinking agents 52 25 45 17 130 29 299
Pulping specialties 1 0.5 1 12 9 16 39
Processing aids
Retention and drainage aids 200 50 220 23 250 36 780
Pitch-control agents 270 58 185 20 37 34 604
Defoamers/deaerators 200 13 116 30 70 47 477
Biocides 82 10 57 23 120 36 328
Pigment binders/coatings 753 250 1,160 355 2,231 384 5,133
Dry-strength additives 566 120 642 407 631 440 2,805
Sizes 220 55 282 251 545 251 1,604
Specialty coatings 345 30 219 295 91 319 1,299
Dyes, pigments, and fluorescent whitening 238 60 190 60 280 92 919
agents
Wet-strength resins 290 65 170 40 81 35 680
Total 3,286 740 3,352 1,536 4,554 1,721 15,188
Regional share (percent) 22% 5% 22% 10% 30% 11% 100%
Average annual volume growth rate, 2017–22 0.0% 2.7% -1.1% -0.3% 1.7% 0.6% 0.5%
(percent)

World consumption of specialty chemicals for paper and board—2017
Central and South

America
Japan 5%
Please10%use Adobe, Chrome, or Internet Explorer to read this file.
China
30%
Other Asia and
Oceania
11%
NAFTA
22% Europe
22%
The consumption value of the global specialty paper chemicals industry has been eroding at an average annual rate of 0.6%
since 2008. Consumption has been impacted permanently by the shift from print to digital means of communication
which led to the closure of small, inefficient mills and the consolidation of the customer base. Demand for packaging and
sanitary and household grades of paper should help stabilize the market, but overall future growth will be very slow. In
constant US dollar terms, specialty paper chemicals consumption on a global basis is forecast to grow at less than 1%
annually, over the next five years. Regionally, growth patterns are different. Consumption is expected to decrease or
remain static in the established regions of NAFTA, Europe, and Japan. The prospect remains somewhat positive for the
other regions: Central and South America, China, and the rest of Asia. However, growth has slowed in these regions as
well, and is projected at only 2–2.5% per year in the next five years. China’s consumption, which had averaged 6–6.5% per
year in recent years, has slowed dramatically because of overcapacity in the paper industry and the government’s push for
stricter environmental compliance. China’s consumption of specialty paper chemicals is also characterized by a
disproportionately high production of lower-value grades of paper and paperboard, which require less specialty paper
chemicals.
NAFTA
The NAFTA region pulp and paper specialty chemicals market is valued at $3.3 billion in 2017. The majority of specialty
chemicals are used in the papermaking process either as processing aids or as functional sheet-performance additives.
Brightness, sheet surface characteristics, printability, and furnish content (fiber/filler/wastepaper) have all been drivers in
the demand for specialty paper chemicals over the past decade. Commodity chemicals such as sodium chlorate, hydrogen
peroxide, caustic, lime, soda ash, kaolin, titanium dioxide, and unmodified starch represent by far the greatest volume and
value of the chemicals consumed by the paper industry. Most commodity chemical products are used in pulping or
bleaching operations.
Specialty paper chemicals are sold on the basis of performance and function and are often marketed under mill problem-
solving service contracts. Several products are tailored to meet the specific needs of the papermaking industry and specific
mills. They are divided into two categories.
• Those that assist in processing such as catalysts, bleaching agents, defoamers, pitch- and deposit-control agents,
slimicides/biocides, and retention and drainage aids.
• Those that become part of the finished sheet or board such as wet- and dry-strength additives, sizes, dyes, pigment
binders, and specialty coatings.

The following table shows NAFTA market values and projected growth rates for the specialty paper chemicals covered in
this report. Finer breakdowns follow; multifunctional products are discussed within their primary functional chemical
group.
NAFTA consumption of specialty paper chemicalsa

Average annual
volume
Contact Customer Care (customercare@ihs.com) if you have any questions. growth rate,
2017–22
2011 2014 2017 (percent)
Bleaching specialties 73 73 69 0.5
Deinking agents 57 50 52 0.6
Pulping specialties 10 5 1 -10.0
Processing aids
Pitch- and deposit-control agents 271 260 270 1.0
Retention and drainage aids 259 250 200 1.0
Defoamers 230 225 200 1.0
Biocides 100 95 82 1.0
Pigment binders 786 689 753 -0.5
Dry-strength additives 619 557 566 -1.0
Wet-strength resins 278 298 290 1.5
Sizes 292 280 220 0.0
Dyes, pigments, and fluorescent whitening agents 245 240 238 -2.0
Specialty coatings 338 335 345 1.0
Total 3,558 3,356 3,286 0.0%
a. Further breakdowns of each functional product group are provided in the subsequent section discussions.
Volume consumption for specialty paper chemicals in the NAFTA region is expected to remain stable over the next five
years while prices for specialty paper chemicals remain under pressure, as rising raw material and energy costs combined
with financially stressed customers will cause historically thin margins.

Consumption and markets
Estimated recent demand and projected growth for specialty bleaching agents in NAFTA are shown below.
NAFTA consumption of bleaching specialties at mills—2017

Average annual
volume
growth rate,
Thousands of Millions of 2017–22
metric Tons dollars (percent)
Chelants
EDTA and DTPA chelants 8.5 25 0.7
Phosphonate and gluconate chelants 0.8 2 0.0
Total chelants 9.3 27.0
Sodium borohydride 0.8 32 -2.0
Enzymes na 10 1.6
Total 10.1 69.0 0.5%

NAFTA pulp and paper demand for ethlylenediaminetetraacetic acid (EDTA) and pentasodium diethylenetriamine
pentaacetate (DTPA) amounted to approximately 8,500 metric tons, valued at $25 million in 2017. The trend toward
totally effluent-free (TEF) and closed water loops at mills will negatively impact the use of EDTA and DTPA.
NAFTA consumption of Please

organicuse Adobe, and
phosphonate Chrome, or chelating
gluconate Internetagents
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by pulp read thiscompanies
paper file. in 2017
amounted to less than 1,000 metric tons, valued at about $2 million. The most common product used by pulp mills is
diethylenetriaminepenta(methylene phosphonic)acid (DTPMP), which competes with DTPA. Environmental concerns
that these products contain phosphorus and nitrogen may negatively impact market demand. Phosphonates and other
Contact
niche brightness Customer
enhancers Care (customercare@ihs.com)
are not expected to grow in the next five years. if you have any questions.
Bleached mechanical and recycle mills have the option of purchasing merchant sodium hydrosulfite or manufacturing it
on-site. Output from these mills is predominantly destined for newsprint at present. Over 50% of the North American
hydrosulfite market is accounted for by 12% sodium borohydride solutions and the remainder is merchant hydrosulfite.
The NAFTA pulp and paper industry’s use of sodium borohydride solutions was valued at $32 million in 2017. Use of
sodium borohydride for mechanical pulp bleaching in the United States and Canada is expected to decline following
mechanical pulp demand and expected reductions in newsprint output—that is, to average a decline of about 2% per year.
Use of various enzymes by the NAFTA pulp and paper industry in 2017 was estimated at $10 million, primarily for
xylanases. Very little growth is expected for this segment in the next five years.
Market participants
The following table shows the major suppliers of bleaching specialties in NAFTA.
NAFTA suppliers of bleaching specialties for pulp and paper—2018

EDTA and Phosphonate
DTPA and gluconate Sodium
Company chelants Enzymes chelants borohydride
AkzoNobel Chemicals Inc.a X
BASF Corporation X
Buckman Laboratories International, Inc. X X
DowDuPont Inc. X X
Montgomery Chemicals LLC X
Vertellus Specialties Inc. X
Prices
In the NAFTA region, the list price for sodium borohydride, 12% solution, in 55 gallon drums, was about $40 per kilogram,
100% basis, FOB plant in truckload quantities.
In 2017, the typical market price for EDTA was about $2.50–3.00 per kilogram, while DTPA was about $3.00 per kilogram,
100% basis, truckload quantities.
Xylanases and cellulases used to deink toner from office copiers and laser printers are available for less than $9.50–10.50
per kilogram. Enzymes can reduce the need for deinking chemicals and can be cost-effective.
Organic phosphonate chelating agents for pulp use were about $4.00 per kilogram (100% basis) for 50% solutions. Tailored
blends of brightness enhancers tend to be more expensive per kilogram but are reportedly applied at lower dose levels.
Gluconates were priced at about $1.00 per kilogram.
Future trends and strategic issues

As US newsprint production and capacity decline, the demand for mechanical pulp bleaching agents, such as chelants and
sodium borohydride, will follow a similar trend.

Deinking agents
The following table shows NAFTA consumption of deinking agents in 2017.
NAFTA consumption of deinking agents—2017
Fatty acids/fatty alcohol derivatives and soaps 26
Nonionic surfactants 24
Enzymes 2
Total 52
Surfactants, in the form of fatty alcohol derivatives and nonionic surfactants, accounted for the largest segment of
deinking chemicals consumed in NAFTA in 2017. A small amount of enzymes, roughly valued at $2 million, was also used
as deinking agents. Deinking chemicals volume has stagnated despite increasing recycled paper consumption as deinking
chemistry has improved and narrowed, and the use of sophisticated mechanical equipment has increased.
The persistent challenge in recycle mills is not the deinking, but removing stickies, specifically those from pressure-
sensitive, polyacrylate-based adhesives. The following table shows some of the technologies that improve recycling and
deinking efficiency.
Recycling and deinking technologies

Adsorption of stickies onto a removal solid
Ash and clay recovery
Enzymes (biodeinking)
Filtering of process water loops
High-efficiency washing
Industrial washing machines
Oxygen delignification
Slotted screen with 0.004-inch or even 0.003-inch slots
Demand for all types of deinking chemicals—specialties and commodities alike—depends on the amount of printed
wastepaper and printed cartons reused in the production of new paper, paperboard, or market pulp. With the exception of
pulp substitutes, all the following official grades of wastepaper are printed to some extent.
• Corrugated. Used corrugated containers, container plant cuttings, and kraft grocery bags.
• High-grade deinking. Deinking grades of white and coated book and groundwood paper, and bleached sulfate sheets
and cuttings.
• Mixed papers. The catchall category for other paper products that are not classified elsewhere; includes colored paper
envelopes, magazines, catalogues, telephone directories, food packaging, and mixed office waste; also recycled
boxboard, cuttings, tissue, mill scrap, and mill wrappers.
• Newspaper. Old newspapers, either collected from households, unprinted or overruns at newsstands or in the plant;
also groundwood paper trim.
• Pulp substitutes. Unprinted grades of brown and colored kraft; white and semibleached sheets and cuttings; tabulating
cards; and shavings or trim of unprinted grades.
Although each grade has deinking potential, they are not equally recovered, deinked, or reused for a variety of reasons
(e.g., old corrugated containers are rarely deinked because of the minimal amount of inks on them). On the demand side,
when virgin market pulp prices are high, mill operators use greater amounts of less expensive scrap paper for fiber furnish.

The principal type of wastepaper that is deinked in the United States in terms of volume is old newspaper (about a 40%
share of the deinked paper market). Old corrugated containers (OCC) are generally not deinked at all and “high-grade
deinking paper,” which is composed of computer printout paper, carbonless paper, and scrap from books, envelopes,
business forms, brochures, and ledgers obtained during converting operations, is high-quality scrap paper that has not yet
been printed. Please use Adobe, Chrome, or Internet Explorer to read this file.
Almost all deinked newsprint in the United States is now used either for new newspaper production or for recycled
paperboard production or is exported. Most other deinked paper is now used for new tissue, toweling, and recycled
ContactACustomer
paperboard production. Care (customercare@ihs.com)
small but increasing amount is being used for new ifprinting,
you have anyand
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office paper. Although
over 90% of all OCC are now recycled, most are not deinked or require only minimal deinking. The OCC recycled pulp is
usually used for production of new corrugated containers, boxes, and cartons, or is exported.
Stickies removal is the major problem to be solved with OCC, not ink. Natural and synthetic stickies such as adhesives
reagglomerate and accumulate in the wastewater loops. This, combined with the industry’s trend toward tighter water
loop closure, increases the need for greater filtering, flocculating, or other treatment of recycle mill circulating process
waters.
Market participants
In the NAFTA region, Kemira is a major supplier of specialty chemical formulations for deinking. Many companies are
suppliers of deinking chemicals (components, formulations, commodities, and specialties) and almost every specialty
paper chemical supplier has solutions for mills that need to deink.
Prices
In the NAFTA region, surfactants used in deinking ranged from $3.00 to $4.50 per kilogram, 100% basis, in 2017. Specialty
deinking agents were generally quoted at $4.50 or more per kilogram on an as-is basis. The products are not necessarily
100% active content, although many of the pure surfactant products are composed of 100% active material. Fatty acid
collector chemicals for flotation processes are usually purchased as 50% solutions of the sodium salt (i.e., sodium stearate).

Many trends discussed in the Major pulp and paper industry issues and trends section covering wastepaper apply to
future demand for deinking chemicals. Additional trends in North America are discussed in the following paragraphs.
North America’s paper recovery rate is approaching 70%. Although the rate varies by country and grade of paper, the
industry believes the United States is getting close to a recovery ceiling of 80%. The rate is accelerated by the shrinkage in
the availability of paper for recycling, which in turn is to the result of the long-term decline in the production of printing
and writing papers. This trend means there is less paper available for deinking in the future.
Many municipalities in the United States have switched to a single-stream mode of collecting recyclables. Although this
has encouraged more recycling, it has lowered the quality of the material by introducing more contaminants. The erosion
in the quality of collected paper mitigates the effect of a slowing recycle recovery rate. This factor will boost the need for
more deinking agents.
These opposing trends are expected to result in a flat market for deinking chemicals in NAFTA in the next five years.
Pulping specialties
There is very limited consumption of anthraquinone (AQ) as a pulping catalyst in NAFTA. In 2017, consumption was
estimated at about $1 million dollars. AQ’s benefits—lowering of the pulp kappa number and a reduction in sulfurous
emissions by replacement of some sulfur during kraft pulping—are major advantages. However, demand is limited by the
availability of secondary fiber from wastepaper, which has no lignin; the fact that kraft mills no longer need to push
production to capacity limits because of adequate global pulping capacity; and health and safety concerns. Studies have
shown the potential carcinogenicity of AQ. The state of California includes AQ in the list of Proposition 65 chemicals.
Other regulatory agencies such as the BfR in Germany and the European Food Safety Authority have published opinion

notices effectively banning or extremely limiting the use of AQ in the production of paper or paperboard used in food
contact products.
Processing aids Please use Adobe, Chrome, or Internet Explorer to read this file.
Pitch- and deposit-control agents
The following table shows NAFTA consumption of specialty pitch- and deposit-control agents.
NAFTA consumption of specialty pitch- and deposit-
control agents—2017
Dispersion 110
Dissolution 83
Adsorption/coagulation 72
Other (enzymes, biodispersants) 5
Total 270
Dispersion and dissolution agents are typically nonionic surfactants (ethoxylates and propoxylates). Adsorption agents are
cationic polymers like poly-DADMACs, polyamines, or polyvinylamines.
The NAFTA market for specialty chemical deposit control in 2017 was valued at an estimated $270 million. Pitch- and
deposit-control agents have become an integral part of pulp and paper manufacturing because of several factors, among
which are an increasing amount of “anionic trash” and physical stickies introduced from recycled wastepaper, and closed
water loop systems that keep high levels of dissolved organic and inorganic material. Biodispersants and cationic
polymeric poly-DADMAC coagulants are two chemical treatments that experienced increased demand because of the
increasing load of anionic trash contained in the water system. There has also been greater use of surfactant blends to keep
contaminant/adhesive/stickies particle sizes very small and to prevent them from reagglomerating while maintaining or
improving overall retention in the system. Enzymes have also made some inroads.
Despite the increased recycled furnish content, with all its residual stickies, adhesives and ink, and higher-pH alkaline
pulping conditions at paper mills, future demand for these chemicals will increase minimally at about 1% per year. Many
manufacturers are resorting to a combination of mechanical and chemical treatments and increased focus on
contaminant prevention.
Market participants
The following table shows major suppliers of pitch- and deposit-control chemicals:
Major NAFTA suppliers of specialty pitch- and deposit-control agents—2018

Dispersion and Fixing
Company dissolution agents Other
Archroma US, Inc. Cartaspers® Cartafix®
BASF Corporation Tamol® Alcofix®, Raifix® CedesorbTM
Buckman Laboratories International, Inc. Busperse
Kemira Chemicals, Inc. Fennodispo, Fen-
nosorb, Fennocor
Nalco Company X X X
an Ecolab Company
Solenis LLC Tallofin® InfinityTM X
Praestafix®
DeTacTM

Numerous companies offer commodity and quasi-commodity pitch- and deposit-control chemicals. Solenis is the
dominant supplier of specialty deposit-control agents to the NAFTA papermaking industry. Roughly 70% of this market is
accounted for by the top four companies: Buckman, Kemira, Nalco, and Solenis.
Prices
In the NAFTA region, specialty formulated products are sold as liquids for mill convenience and average 15–30% active
content. Selling prices in 2017 were $2.00–4.00 per kilogram of formulated product. Typically, deposit control is part of a
performance-based contract using paper unit output as the increment for payment, not the quantity of chemical applied.
This system is Contact
also known Customer Care (customercare@ihs.com)
as performance-based if you
payment. Treatment of systems have
using any fiber
recycled questions.
or for mills with poor
regular maintenance programs is more expensive.

Issues that will have an impact on deposit-control programs and chemicals include the following:
• In the United States, the recycled paper content may have reached a plateau. There may not be continuing growth in the
need for deposit control from higher rates of use of recycled paper.
• The use of secondary-fiber introduces contaminants such as inks, coatings, adhesives, and dirt that are difficult to
remove or disperse and cause sticky deposits. Removal of the adhesives prior to the wastepaper repulping (e.g., better
sorting) or making them repulpable would lessen deposit problems.
• Closure of water systems leads to a greater concentration of dissolved solids that aggravate deposit problems. Higher
temperatures are prevalent in closed systems and add new deposit problems. Increased use of closed-loop water systems
will therefore stimulate the consumption of deposit-control agents.
• Interfering substances or anionic trash needs to be fixed to the fiber—not introduced into the system in the first place—
or removed in an environmentally acceptable manner in order to prevent more deposits.
• Longer-wearing fabrics and felts have made possible longer time intervals between machinery shutdowns for cloth
changes. Longer running times provide more time for potential deposits to accumulate.
• Formulated specialty organic dispersants, biodispersants, and chelates/builders are on the increase for deposit control.
The products are used in all types of mills. Exact product composition depends on the composition of an individual
mill’s pitch and other deposits. Since these products are very mill-specific, mill-tailored formulations are the rule rather
than the exception. Some of the most important dispersant white pitch–control agents are low-molecular-weight
polyacrylic acids.

A breakdown of consumption for retention and drainage aids in NAFTA is shown in the following table. These data exclude
the use of chemically similar flocculants for color removal, deinking sludge, process water treatment, and
water/wastewater treatment.

NAFTA consumption of retention and drainage aids in papermaking—2017
Average annual
volume
growth rate,
Thousands of Millions of 2017–22
metric tons dollars (percent)
Polyacrylamidesa 25 97 —
Microparticles (colloidal silica or bentonite 105 74 —
products)
Polyamines and polyethyleneimine 5 30 —
Totalb 135 200 1.0%
a. Pulp, paper and paperboard mills that deink wastepaper for either captive fiber needs or merchant pulp sales also use these types of organic floccu-
lants and coagulants off the paper machine. These volumes are excluded from the data.
b. Very small volumes of guar gum and polyethylene oxide are also consumed.
Market participants
Suppliers to the NAFTA region are shown below. Not all manufacturers of polyacrylamides and polyamines market to the
pulp and paper industry for either on-machine retention or water clarification purposes.
Major NAFTA suppliers of polymeric retention and drainage aids—2018

Synthetic Microparticle
Company polymers retention systems
AkzoNobel Chemicals Inc.a Levasil colloidal silica
BASF Corporation Polymin® cationic polyacrylamide emulsion and poly- Hydrocol® bentonite microparticle
ethyleneimine Telioform® synthetic anionic microparticle retention and
Percol® polyacrylamide drainage system
Buckman Laboratories Mosaic® microparticle retention system
International, Inc.
Kemira Chemicals, Inc. FennoPol cationic polyacrylamides FennoSil silica sol
FennoSil anionic micro or linear polymeracrylamide FennoLite bentonite
Nalco Company Positek®; back-integrated to acrylamide and polyacry-
lamide manufacture
Solenis LLC PerFormTM advanced retention and drainage technology using
structured organic particles
Prices
Typical market prices for retention aids (100% solids) are given below. Prices vary greatly, however, depending on the
package and contract. Various products are sold as dry polymer, liquids, or emulsions. The emulsions are usually around
50% solids.
Typical US market prices for retention and drainage

aids—2017
(dollars per kilogram)
Polyacrylamides 3.70-5.00
Polyamines 4.50-6.00

• Retention aids will become more important as the quality of the collected recycled paper and board erode.
• Synthetic, highly cationic polymers tie up anionic trash, improve retention of higher filler loadings and enhance sizing.
Under an alkaline situation, the fibers swell more, hold more water, and require a longer time to drain. New polymer

chemistries will be required for retention when more anionic trash proliferate along with the use of as closed-loop water
systems.
• Faster machine speeds necessitate better/quicker drainage.

• Throughout the wet end, continuous measurements in process control will be online so that changes in furnish
components—regardless of the quality of virgin pulp, recycled pulp, or broke content—will be compensated for by
various chemical additions; proper dose amounts will be computer monitored and modified.
Defoamers
The following table shows consumption of defoamers in papermaking in NAFTA.
NAFTA consumption of defoamers in papermaking—2017a

Fatty acid amides 50
Fatty alcohols 80
Polyalkylene glycols 20
Silicones 50
Total 200
In 2017, consumption of specialty chemical defoamers by NAFTA pulp and paper mills amounted to an estimated $200
million. Defoamers are consumed in the wet-end processes in pulp and paper mills, in sizing and coating operations, and in
the treatment of process water and effluent. Future volume consumption will be relatively flat as a result of:
• Increasing use of mechanical and chemical deaeration (decreasing growth).
• Greater amounts of calcium carbonate in the system (which produces carbon dioxide, increasing growth).
• Reduction in use of more expensive types of defoamers (decreasing value growth).
• More concern about biodegradable chemicals, limiting silicone defoamer use but stimulating growth of fatty acid–based
deaerators.
In the United States, volatile organic compound (VOC) components are restricted, water-based formulations continue to
increase market share, and more concentrated products have appeared in some instances. In addition to chemical foam
control, mills also use mechanical control with skimmers, screens, and air entrainment, and have invested in new washing
equipment to handle the increased amount of foam. While volume growth is flat to declining, value growth has increased
with price increases in the last few years. Volume growth is restrained by the greater effectiveness of newer formulations,
many of which are more concentrated. Together, these factors plus a decline in papermaking capacity indicate a flat
market through 2022.
Market participants
The following table shows suppliers of defoaming agents for the pulp and paper industry in NAFTA.

NAFTA suppliers of defoamers for pulp and paper—2018
Trade names by paper application
Papermaking
Please use Adobe, and Surface

Company Coatings wastewater sizing Remarks
Archroma US, Inc. Antimussol® Antimussol® Antimussol® Silicone- and oil-based defoamers for brownstock washing,
water-based emulsions for the paper machine wet-end, and
alkoxane derivatives for size-press and coating applications.
BASF Corporation Foambrake™ Afranil® Coating and papermaking defoamers composed of alcohol
Foambrake™
Contact Customer Care (customercare@ihs.com) ifalkoxylates
you have and phosphoric esters.
any questions.
Ciba®
BURST®
Buckman Bubreak®
Laboratories, Inc.
Dow Corning Pulpaid® Emulsions and concentrates—Dow Corning is a basic sili-
Corporation cones manufacturer.
Kemira Chemicals, Fennotech®
Inc.
Münzing Chemie Agitan® Agitan® Agitan® Münzing Group has manufacturing and sales in the United
GmbH States. Mineral oil–, silicone-, and vegetable oil–based prod-
ucts.
Nalco Company X Major global service provider; broad product line.
an Ecolab Company
Solenis LLC Antispumin® Product line includes water-based, water-extended, oil-based,
Advantage® silicone silicone/natural oil blends, and concentrates.
De-Airex®
Protocol®
Prices
The paper industry is one of the most price-sensitive consumers of defoamers, which have historically been part of a total
chemicals supply approach by a sole-source supplier. In the NAFTA region there tends to be variation in active materials,
the targeted application areas and the numerous different concentrations of the finished formulation (e.g., 5–100%).
Defoamers marketed to pulp mills are usually less expensive. Prices for silicone-based defoamers sold at 25%
concentration were $3.00–3.50 per kilogram in 2017. Some as-is chemical defoamers were as low as $0.75 per kilogram.

• The preference of mills to have fewer chemical suppliers will continue to drive the trend in supplier consolidation.
• Silicone defoamers are not likely to increase market share on paper machines where the silicone can interfere with
fiber-to-fiber bonding, sizing, and other wet-end interactions, nor when issues of biodegradation are a concern.
However, some of these problems can be mitigated with the use of lower-molecular-weight silicones, using less cross-
linked silicones, or increasing the surfactants used to rinse the silicones out of the system.
• Water loop closure, increased carbonate filler levels, higher paper machine speeds, and increased use of recycled
wastepaper with surface-active contaminants all indicate a higher potential for increased foam production, but this may
also be partially solved through mechanical and chemical deaeration.
• Water-based or water-extended defoamers will continue to grow because of their ease of handling and incorporation
into the wet-end process.
Biocides
The following table shows estimated consumption of specialty biocides used in papermaking.

NAFTA consumption of specialty biocides in papermaking—2017
Haloamines 35
Organosulfur compounds 30
Bromine-containing compounds 10
Quaternary ammonium compounds 4
Other 3
Total 82
The market for specialty nonoxidizing biocides in pulp and paper mills is part of the total deposit-control market and can
be highly mill and application specific. Unlike demand for deposit-control agents, which continues to grow, volume
demand for biocides has been relatively unspectacular. This is mainly because of the solving of several bacterial and fungal
problems by cost-effective oxidizing commodity chemicals (such as chlorine dioxide, sodium hypochlorite, and chlorine)
that can be available in mill recirculating waters from bleaching units. Many mills use these commodity oxidizers as
biocides. The inorganic oxidizing biocides are reportedly very cost-effective under alkaline papermaking conditions, even
though their persistence is low. It is also likely that portions of deposit-control programs are inherently biocidal.
Biodispersants, which keep inorganic and nonliving matter from depositing, and biostats, which slow the reproduction of
microorganisms or interfere with their ability to metabolize food, are more commonly found now in alkaline mills as a
composite biocidal deposit-control program. Alkaline papermaking systems have promoted the use of dithiocarbamates,
isothiazolinones (e.g., the Kathon® series, brominated hydantoins, and glutaraldehyde) at the expense of methylene
bisthiocyanate (MBT), dazomet, and chlorine. Certain glutaraldehyde formulations are only available in Canada.
A mill’s total microbiocidal program may use:
• Chlorination or bromination water clarification, including use of a biodispersant in the freshwater.
• Nonoxidizing biocidal treatments of the starch, additives, broke, coating, and stock chests.
• A fast-acting organic biocide close to or on the paper machine.
Market participants
Water treatment and wet-end paper mill service companies are the major marketers of biocidal products to mills. These
companies not only formulate products but also provide equipment and technical assistance in maintaining acceptable
water quality (i.e., water treatment service). This service includes regular maintenance programs as well as timely
assistance on site for specific problems that may arise at any time and require special treatment. Normally, this requires
technically trained, regionally located sales personnel, supported by biological testing laboratories and other problem-
solving resources. The service company personnel are familiar with the operating equipment in the papermaking process
and perform routine “biocidal” maintenance during shutdowns and other related services. Companies that provide these
services base their charges on the value of this service as well as on the chemicals employed. In almost every instance, mill
owners choose to place the responsibility for these toxic treatments outside their employees’ domain and consider
microbiological monitoring and control a necessary, outsourced service. Major suppliers of biocides/slimicides in the
NAFTA region are shown in the following table. Basic biocide active ingredient manufacturers that typically do not sell
directly to pulp and paper mills are excluded from this list but are discussed in the SCUP Biocides report.

Major NAFTA suppliers of biocides to pulp and paper mills—2018
Company Remarks
Buckman Laboratories, Inc. Manufactures for formulators and supplies mills directly; No. 2 supplier to
mills; biodispersants as well as traditional biocides.
DowDuPont Inc. Major producer/supplier of 2,2-dibromo-3-nitrilopropionamide glutaralde-
hyde (DBNPA) to the pulp and paper industry.
Kemira Chemicals, Inc. Manufactures for formulators and supplies mills directly; Fennosan product
brand.
Nalco Company No. 3 supplier to mills.
Solenis LLC ContactNo. 1 supplier to mills;
Customer Care total formulator and service company. Also enzymeif you have any questions.
(customercare@ihs.com)
biostats.
Prices
In the United States, formulated biocidal products, sold as-is and complete with service, vary widely in price, ranging from
less than $2.50 to as high as $15 per kilogram. They vary considerably in the active-content level. Since monitoring,
technical service, and often deposit control usually come with a microbiological control program, the actual price of the
active ingredient is not as important as the price of the total service package. Biocide service contracts including
monitoring are typically charged at a rate of $2.00–4.00 per metric ton of finished paper product. Mills with complex
problems and those undergoing alkaline conversions can pay much higher prices. Organosulfur dithiocarbamates, 100%
active, were priced in the range of $3.00–3.50 per kilogram in 2017.
Pigment binders
Numerous grades of coated paper and paperboard, each with specific end-use performance requirements, use a binder
system to cement pigments together so they adhere to the surface of the preformed paper web or board. Starch, synthetic
latexes, and their combinations serve as pigment binders. The following table shows NAFTA consumption of synthetic
pigment binders by latex type.
NAFTA consumption of specialty pigment binders in papermaking—2017

(100% solids)
Average annual
volume
Volume Value growth rate,
(thousands of (millions of 2017–22
metric tons) dollars) (percent)
Styrene-butadiene latex 185 500 -0.1
Polyvinyl acetate latexa 58 168 -1.5
Acrylics 16 67 -3
Polyvinyl alcohol 10 18 1
Total 269 753 -0.5%
a. Includes copolymer latex.
Synthetic latexes are the largest-volume specialty and quasi-specialty products in use today. Synthetic latexes are favored
over natural binders because they produce better gloss and print characteristics, such as smoothness and ink holdout.
Most common in the United States today is a blended binder system of latex and starch for lower costs yet good
performance. Most synthetic styrene-butadiene (SB) latex binders are known as carboxylated resins because they contain
acrylic acid or a similar comonomer. All synthetics are supplied as latex emulsions with 50% active solids content. They are
popular in mills because of their low viscosity and their ability to increase the coating solids content (which contributes to
ease of handling, faster drying, and greater gloss). Other advantages of the synthetics over natural binders include product
uniformity and the ability to be easily metered by fully automated, computerized coating equipment.

Carboxylated SB latex is the preferred binder for paper coatings. Advantages of SB over other latexes for coated papers
include enhanced gloss, enhanced binding capability, and machine runnability. The variables as to which specific SB latex
is to be used for a particular pigmented coating for paper or paperboard are pigment particle size, degree of carboxylation
(amount of unsaturated acrylic, methacrylic, itaconic, or fumaric acid incorporated into the SB chain), ultimate end use,
Pleaseratio.
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Roughly 75–80% of SB pigment binders is used on coated papers for annual reports, advertising flyers, magazines,
advertisement inserts, catalogues, one-sided coated labels, and similar publication papers. The remaining 20–25% is used
for paperboardContact Customer
products such Care
as folding (customercare@ihs.com)
cartons if you have
that are used primarily for packaging any detergents,
of cereals, questions.frozen
dinners, butter, and 6- or 12-pack carrier cartons for sodas, beer, and juices.
Consumption of SB latex for pigment binders is expected to decline during 2017–22, impacted by falling production of
magazines and other high-gloss publications.
Polyvinyl acetate (PVAc) emulsions are the second-largest-volume synthetic pigment binder used in the NAFTA region.
The PVAc polymers consumed in board and paper manufacture are mostly homopolymers but some copolymers are also
used (usually with n-butyl acrylate), and are usually sold as 45–52% solids in emulsion form. (Products in this latex
category include copolymers in which vinyl acetate represents at least 60% of the polymer, and comonomers such as n-
butyl acrylate, ethyl acrylate, and 2-ethylhexyl acrylate [or possibly ethylene] represent the remainder.) Most PVAc paper
coatings are homopolymer emulsions.
Coated folding boxboard and foil-laminated papers for labels are the major markets for PVAc pigment binder emulsion. It
also provides resistance to oil, grease, and organic solvents. Roughly 80% is used on paperboard and 20% is used for coated
papers. It provides opacity, which is an advantage on recycled paperboard. PVAc pigment binders are more blister-resistant
than SB latexes with heat-set inks. Future demand for PVAc as a pigment binder will track increased demand for coated
paperboard and the use of high-quality packaging materials with branding/advertising opportunity and printable surfaces.
While the market is mature, it will be impacted by declines in consumption for high-gloss publications such as magazines,
and a 1–2% average annual decline in volume through 2022 is expected.
Acrylics/vinyl acrylics or acrylate emulsion products are copolymers of methyl methacrylate, ethyl acrylate, and acrylic
acid. They are effective products, but tend to be consistently more expensive than SB and PVAc latexes. As a result, they
find use in high-value-added specialty niches. Acrylic (or vinyl-acrylic) latexes are often used for coating food packaging
because of good printability with excellent ink resistance, high gloss, and low odor. They also provide grease resistance and
improved wet/tensile strength for specialty papers. Acrylics are used particularly for some of the small-volume gravure
printing papers and recycled folding carton stock. Specific end uses include folding boxboard (e.g., frozen food containers),
greaseproof paper, and wallpaper. Overall demand for acrylic/vinyl acrylic emulsions for pigment binder use is showing
some declines particularly for high-gloss publications.
Polyvinyl alcohol (PVOH) is used as a dual-functioning sizing agent and pigment binder. Through the mid-2000s,
consumption increased as the paper industry demanded greater strength and color flexibility, particularly with newsprint.
Superior strength has been one of its advantages. Volume growth through 2022 is expected to be flat, meaning it will be
taking market share from competing specialty pigment binders, such as acrylics. It has been used mostly as a specialty
pigment binder that also provides oil-, grease-, wax-, and organic solvent–resistant properties (e.g., in potato chip bags). It
is widely recognized as the strongest binder but does not generally compete with the large-volume SB or PVAc binders.
Primary paper and board grades that use polyvinyl alcohol are silicone-treated release liners, carbonless papers, flexible
packaging, high-brightness publication papers (as a rheology aid), some recycled linerboard, and newsprint. In the United
States, fully hydrolyzed polyvinyl alcohol characteristically is used as an excellent carrier for fluorochemical grease
repellents or fluorescent whitening agents.
Modified starch is a major ingredient of pigment binder coatings because of its low cost, binder characteristics, and
adhesion properties. Corn starch instead of potato starch dominates US coating applications because of its widespread
availability and low cost. Combinations of starch and styrene-butadiene latex are extremely common. The modified starch
used in coatings is chiefly hydroxyethylated starch, with small amounts of oxidized starch still being used.
Hydroxyethylated starch has been used increasingly to upgrade print quality at a low cost.

NAFTA consumption of pigment binders on a volume basis is expected to decline from 2017 through 2022 mainly
following declines in coated paper production with falling print media subscriptions and fewer magazines and less
advertising being printed, while growth in packaging, especially food-related packaging, is expected to track gains in
population, reducing the consumption decline from print media.
Market participants
The leading suppliers of pigment binders to the NAFTA paper and board industry are given in the following table. Trinseo
is the overall leader and No. 1 supplier in synthetics, with about 50–55% of the large-volume SB market. It dominates
coated paper applications.
Major NAFTA suppliers of synthetic pigment binders for paper—2018

Binder and company Remarks
Acrylics/vinyl acrylics
DowDuPont Inc. Polyco®, Rhoplex®
Polyvinyl acetate (homo- and copolymer) a
DowDuPont Inc. Polyco®

Polyvinyl alcohol
Kuraray America, Inc. Elvano™l, Poval
Sekisui Chemical Co. Ltd. Selvol™
Styrene-butadiene latex
BASF Corporation Third-largest supplier.
Mallard Creek Polymers, Inc.
OMNOVA Solutions Inc. Second-largest supplier.
Trinseo S.A. Largest supplier—about 50–55% share of paper
market.
a. Numerous additional companies produce PVAc for a large number of applications.
Ingredion Incorporated is a major supplier of natural-based products with an estimated 60% of the hydroxyethylated corn
starch binder/coating market in volume.
Prices
In North America, pricing in the high-volume, multiple-supplier SB latex market is highly competitive. Market prices may
vary among producers depending upon the size of the annual contract. Typical or average US selling prices for various
coating binders are shown below.
Typical US prices for specialty pigment binders

(dollars per kilogram, 100% solids)
2011 2014 2017
Acrylics 4.00-5.00 4.25-5.00 4.2
Polyvinyl acetate latex 3.25 3.10 2.90
Polyvinyl alcohol 2.85 2.00 1.80
Styrene-butadiene latex 2.55 2.65 2.70

Trends that will impact binder usage over the next five years include
• Continuing deterioration of the glossy publications segment.
• Increasing use of surface-treated silicas as a specialty pigment in coated media for digital printing papers.
• Increasing use of on-machine precoats for free sheet and groundwood grades.

• The drive to reduce basis weights and lower total coating weights for papers that are mailed. This is particularly
important for magazines, where postage is one of the leading costs needing control or reduction.
Dry-strength additivesPlease use Adobe, Chrome, or Internet Explorer to read this file.
NAFTA consumption of dry-strength additives is summarized in the following table. The use of shorter, recycled fibers has
resulted in greater consumption of polyacrylamide dry-strength additives; however, recycled content of furnish seems to
have reached aContact
plateau for the United Care
Customer States,(customercare@ihs.com)
the largest North American paper and paperboard
if you have anyproducer. Growing recycled
questions.
fiber content of furnish in Canada and Mexico may help stabilize consumption, but, overall, consumption of dry-strength
additives is expected to decline by 1% annually through 2021, following declining paper production in the NAFTA region.
NAFTA consumption of dry-strength (retention) additives in papermaking—

2017
(dry weight basis, 100% solids)
Average annual
volume
Derivatized specialty starchesa 480 505 -0.5
Polyacrylamides 15 51 -2
CMC/HECb 5 10 0
Total 500 566 -1.0%
a. Cationic corn starch and cationic potato starches also function as retention aids, and are used as an emulsifier for internal synthetic sizing. Such use
is included in the data. No unmodified pearl starch is used in the papermaking wet end but a large amount is used as a coating pigment binder and as
an adhesive for manufacturing corrugated containers.
b. CMC = carboxymethylcellulose; HEC = hydroxyethylcellulose.
An estimated 480,000 metric tons of cationic/amphoteric corn and potato starches were used by NAFTA paper and
paperboard manufacturers in 2017.
Specialty starch products are multifunctional and contribute significantly to overall sheet formation at a reasonable cost,
but require cleaner white water (less anionic trash) than polyacrylamides. This issue may restrict their use in closed-loop
systems. Specialty starches are relatively inexpensive compared with specialty paper chemicals and papermakers are also
very familiar with the handling and use of starch products for surface sizing and coating applications.
Cationic starch use has increased, largely because of alkaline conversions and secondary fiber (recycled) content increases
in specific paper- and board-grade furnishes.
Market participants
In the NAFTA region the dominant polyacrylamide dry-strength producers are BASF, Kemira, and Nalco. Ashland is the
largest supplier of carboxymethylcellulose, while Ingredion is the largest supplier of specialty starches.

NAFTA suppliers of dry-strength additives to the paper industry—2018
Derivatized
Carboxy- specialty Hydroxy- Poly-
Company methylcellulose starches ethylcellulose acrylamides
Archer Daniels Midland Company X
Ashland Inc. X X
Ashland Specialty Chemicals
BASF Corporation X
Cargill Inc. X
Chemstar Products Company X
Grain Processing Corporation X
Ingredion Incorporated X
Kemira Chemicals, Inc. X
Nalco Company X
an Ecolab Company
Solenis LLC X
Tate & Lyle X
Western Polymer Corporation X
Prices
Average US selling prices for dry-strength additives vary depending upon the purchase quantity and origin/destination.
Starches used as dry-strength additives are about $1.00 per kilogram (near a commodity chemical price point), while
polyacrylamides are closer to $3.00–3.50 per kilogram.

• Cationic starch will remain the dominant method of increasing dry strength in paper because of its low cost relative to
other materials.
• Strengthening additives are needed with weaker recycled fibers and higher filler loadings.
• Recycled furnish contributes to anionic trash, reducing the effectiveness of cationic starch. The trend to mill white-
water closure tends to recirculate dissolved anionic trash (Ca++) and creates the same problem. Polyacrylamide functions
better than starches in this higher-trash environment.
• Increased printing speeds will require greater web sheet strength.
• Increased use of microparticles for retention, several of which incorporate cationic starch as a component, positively
impacts cationic starch use.
Wet-strength resins
NAFTA consumption of papermaking wet-strength resins in 2017 is summarized in the following table. Demand for wet-
strength resins is expected to increase at a 1–2% per year rate overall during 2017–22. Within the United States and
Canada, replacement of the formaldehyde-based products has been completed; substitution now focuses on newer
products that are more recyclable, replacing older products that prevent recycling and contribute to contaminants in the
papermaking process.

NAFTA consumption of wet-strength resins in papermaking—2017a
(100% solids basis)
Average annual
volume
Please use Adobe, Volume
Chrome, orValue
Internetgrowth rate,
Polyamide-epichlorohydrin 45 190 1.5-2.0
Glyoxylated polyacrylamide polymers
Contact Customer Care (customercare@ihs.com) 1.0 25
if you have any questions. 100
Total 70 290 1.5%
a. Volumes shown are on a 100% solids basis but these products are marketed at 12–35% solids. Crepe aids are often made from similar chemical
compositions and are accounted for separately in the Specialty coatings section of this report. They are frequently considered a finishing resin that
also contributes wet strength to the final product.
Several grades of paper and paperboard have wet-strength specifications, and therefore utilize wet-strength resins. Most
of these products are being made with a larger percentage of recycled fibers (from old newspapers, corrugated containers,
etc.) and have inherently poorer strength than those made from virgin fibers. This weakening is to the result of the
shorter fibers, fines, and various fillers present, as well as the more rigid, less flexible nature of recycled fibers. Anionic
fillers, contaminants, and other chemical additives can negatively impact the effectiveness of many wet-strength resins.
Most wet-strength resins are now considered neutral curing.
Polyamide-epichlorohydrin (PAE) resins are used as permanent wet-strength agents, while glyoxylated acrylamide
polymer resins impart temporary wet-strength properties to paper PAE resins have made significant inroads into the
papermaking wet-strength market at the expense of the older UF and MF resins. This is a result of trends in the paper
industry to convert to neutral- or alkaline-curing wet-strength resins as replacements for UF and MF resins in the
processing of unbleached package papers (formaldehyde-based resins require an acidic pH for complete curing) and to
reduce formaldehyde content in paper products and in the workplace. Both polyamide-epichlorohydrin and glyoxylated
acrylamide polymers are also cationic and produce their highest cure in the neutral to alkaline range (pH 6–9). They avoid
embrittlement, deterioration, and the harsh hand normally encountered with acid curing systems. The newer resins are
used at lower dose levels and are also more stable. They are particularly useful for products such as toweling, tissue, brown
paper grades, and liquid packaging.
Market participants
Major suppliers of wet-strength resins are shown in the following table.
Major NAFTA suppliers of wet-strength resins—2018

Glyoxylated Polyamide-
polyacrylamide epichlorohydrin
Ecolab Inc.a
Crossett, AR X
Eugene, OR X
Kemira Chemicals, Inc.
Columbus, OH X X
Solenis LLC
Chicopee, MA X
Mexico City, Mexico X
Milwaukee, WI X
Portland, OR X
Savanna, GA X
a. Sells resin manufactured by Georgia-Pacific.
Solenis is the largest supplier of PAE resins in North America with an estimated market share of 45%, followed by Ecolab
at 35% and Kemira at 20%.

Prices
Typical prices for polyamide-epichlorohydrin resins were between $4.00 and $4.50 per kilogram. The percent solids
content in the various products ranges from 12% to 35% for marketed wet-strength resins.
• The presence of active wet-strength resins in recycled papers contributes to stickies and makes them undesirable for
reuse. Most are now burned rather than reused for fiber content by mills.
• Increasing recycled and filler content in mill products requires better or more wet-strength resin because of the shorter
fibers.
• Anionic contaminants from secondary fiber and water loop closures in the wet end detrimentally neutralize cationic
polyamide-epichlorohydrin resins and reduce their wet-strength effectiveness. More technological advances are likely.
• Mill water closure and more controlled dosing levels will tend to constrain volume growth.
• Epichlorohydrin is a toxic chemical and a probable human carcinogen. PAE resins are under scrutiny because of the
presence of low levels of dichloropropanol and other chlorinated compounds which cause concerns as adsorbable halides
(AOX) in water. PAE manufacturers have spent considerable resources on decreasing the health and environmental
impact of their products. Cost-effective wet-strength resins that contain and release no chlorine (i.e., epichlorohydrin-
free or non-epichlorohydrin-type resins) are now available in the marketplace. Low-AOX precursor products (e.g., newer
generations of Solenis’s Kymene™) have significantly reduced chlorinated residuals and have experienced good growth.
• Finding ways of using just enough of these additives to strengthen the surface will result in less product lost to the
white-water draining from the wire during sheet formation. With a lower level of organic strengthening resins in the
water, deposit and microbial growth problems could be reduced and effluents could be cleaner.
• Improved strength of corrugated container products is expected to continue to be an objective. If box manufacturers
reduce the basis weight of their products (i.e., lower the amount of pulp), the likely result will be increased use of
chemical strengthening agents.
Sizes
Consumption of specialty paper size in the NAFTA region is summarized in the following table. Data are stated as 100%
solids. “As-is” sizing supplied to the mills is less than 100% solids.
NAFTA consumption of sizes in papermaking—2017

(100% solids basis)
Average annual
volume
Stock addition
Alkenyl succinic anhydride (ASA) 20 70 1%
Alkyl ketene dimer (AKD) 15 60 1%
Dispersed rosin 30 70 0%
Surface applicationa 5 20 -1%
Total 70 220 0.0%
a. Includes styrene-maleic anhydride (SMA) copolymers and styrene-acrylic ester (SAE) copolymers.
Liquid packaging board is all AKD-sized. AKD provides excellent holdout to acidic penetrants that are commonly found in
juices and milk, which is critically important for juice and milk carton manufacturers. AKD size is also used for other

liquid packaging board applications such as beer cartons, linerboard outer plies, jute liners, fiber drums, paper cups, meat
wrapping papers, and photographic paper.
ASA is the major internal synthetic size used for uncoated free sheet, displacing AKD’s major position in the early 1990s.
Please
In recent years, improved use
on-site Adobe, Chrome,
emulsification or ASA
systems for Internet Explorer
have eased to read this
the convenience file.at mills and there has
of use
been displacement of AKD by ASA sizing in uncoated free sheet. Much of this is the result of sheet-slip related to AKD. On
packaging paper and board, kraft, and testliner, ASA is an alternative to rosin sizing, and has replaced it in gypsum
wallboard liners.
Neutral rosin size systems (e.g., anionic or cationic dispersed rosin size with polyaluminum chloride) were developed in
the early 1990s. Where usable, they are more cost-effective than the reactive synthetic sizes, but even these rosin
specialty sizes are not usable in alkaline systems using high levels of GCC or PCC. Use of commodity rosin soap and paste
sizing continues to decline. Its stronghold is in unbleached kraft paper (grocery bags) and groundwood fine paper grades.
Its use with carbonate-filled alkaline recycled paper causes deposits and generates foam. Neutral rosin sizing technology
reportedly requires precise pH and retention control, and has lowered sizing effectiveness with increasing calcium
carbonate loadings. Neutral rosin is not very effective outside pH 6.5–7.5.
Growth in surface sizing was a significant phenomenon in the late 1990s because it reduced the amount of internal size
needed for free sheet. Use of derivatized starches (hydroxyethylated and oxidized corn starch) has also increased over the
past 10 years because these sizing agents are effective and inexpensive, and also improve machine runnability and
printability. The replacement of pearl starch by these modified starches is expected to continue.
Base sheets that are made with near-neutral internal size can be surface-sized with styrene–maleic anhydride copolymers,
starch, or other surface sizes for improved surface smoothness and printability. Most uncoated free sheet is traditionally
sized using synthetic SMA surface sizing. Some mills apply AKD to the surface although AKD functions best as—and are
intended to be used as—an internal size. These surface sizes improve the printability of alkaline and recycled-content fine
printing and writing papers, allowing higher-speed printing and runnability. Increased demand for ink-jet printer papers
has also positively impacted and changed surface sizing use on previously “uncoated” papers.
Market participants
The following table shows the major suppliers of synthetic specialty paper sizes in NAFTA.
NAFTA suppliers of specialty paper sizes—2018

Internal sizes Surface
Rosin AKD ASA sizes
Archroma US, Inc. X
Bercen Inc. X
Kemira Chemicals, Inc. X X X X
Solenis LLC X X X X
Solenis is the sole manufacturer of AKD powder in the United States at a production facility in Franklin, Virginia. Solenis
also operates one AKD emulsion plant in Burlington, Ontario in Canada and four in the United States: Chicopee,
Massachusetts; Milwaukee, Wisconsin, Portland, Oregon; and Savanna, Georgia. Other AKD size suppliers sell emulsions
to the paper industry using AKD imported from China.
Significant suppliers of specialty starch-based surface sizes include the following:

NAFTA suppliers of specialty starch-based surface
sizes—2018
Archer Daniels Midland Company
Cargill Industrial Starches—North America
Ingredion Incorporated
Grain Processing Corporation
Tate & Lyle

Prices
Average selling prices for various paper sizes in 2017 are as follows (per kilogram): ASA (100% basis), $3.50–4.00; AKD,
$3.50–4.00; dispersed rosin, $2.00–2.50; and styrene-acrylic emulsions, $3.50–4.00. Modified starch prices were around
$2.50–3.00 per kilogram. Starch prices for large volumes direct from starch manufacturers are at lower levels.

• The use of synthetic surface sizing has increased in uncoated free sheet; however, declining demand and production of
printing paper seems to have eliminated prospects for future growth.
• Rosin soap consumption for internal sizing continues to decline. New technologies have provided rosin-based sizes for
near pH 7.0. Polyaluminum-hydroxy-chloride-dispersed rosin systems work at pH 6.7–7.4 and are compatible with
calcium carbonate fillers found in recycled wastepaper.

The value of paper dyes and fluorescent whitening agents in the NAFTA region was estimated at $230 million in 2017. The
major colorant segments and their volume and dollar values are shown in the following table. NAFTA consumption of
these products is expected to decline in volume at a rate of 2% per year through 2022.
NAFTA consumption of colorants in papermaking—2017

Average annual
volume
Dyestuffs
Anionic direct and cationic direct dyes 16.6 83 1.5
Basic dyes 4.1 19 -1.0
Other (e.g., acid, vat, solvent, reactive) 0.8 8 -1.0
Fluorescent whitening agentsa 72 108 -3.0
Synthetic organic pigments 2 20 -1.0
Total 96 238 -2.0%
a. 20–25% concentration
Roughly 90–95% of direct dyes consumed in NAFTA are anionic dyes; the remainder are cationic dyes. The most common
anionic dyes are Direct Yellow 11, Direct Orange 15, Direct Red 81, and Direct Blue 71. The most common cationic dye is
Basic Blue 140.
Basic dyes are the second-largest volume of dyes consumed in NAFTA. Basic Brown 1 is the most common.
Packaging is the largest market for dyes. Other applications include dyed paper products such as tissues, construction
paper, colored cardboard, and disposable paper clothing for hospitals. Paper dyed for aesthetic appearance includes colored
backgrounds for printer material, colored writing paper, and colored tissues and toweling to harmonize with interior

decors. The utilitarian purposes for dyed paper include the identification of multicopy forms, identification of
manufacturer-specific materials or products, opaqueness for packaged material, and the control of the color consistency in
papers manufactured from various colored raw materials.
Market participants
BASF is the largest NAFTA marketer of dyes for paper, probably accounting for 30–35% of all colorants sold to the paper
industry. Kemira and Archroma each account for 20–25% of the market. The major dye suppliers sell to all the dye market
segments, not exclusively to the paper industry; all have international operations, a criterion for success in the global dyes
business. Contact Customer Care (customercare@ihs.com) if you have any questions.
Because of the standardization of dyes, suppliers sell both directly to corporate paper companies and to individual mills.
The products are marketed not through paper service companies but rather by the basic manufacturers. Significant
volumes of dyestuffs that are competitively priced are being imported from China and India, exerting pressure on margins
for US and European producers. There are several resellers, repackagers, formulators, and refinishers of imported dyes.
The major NAFTA producers of FWAs are Archroma and 3V Sigma. BASF stopped production of stilbenic FWAs in the
United States in 2012.
The following table shows the major NAFTA suppliers of dyes and fluorescent whiteners for paper.
Major NAFTA producers of dyes and pigments for paper—2018

Direct
Company and anionic/ Fluorescent Organic
plant location Basic cationic brighteners pigments
Archroma US, Inc.
Martin, SC X X X X
BASF
Altamira, Mexico X X X
Kemira
Goose Creek/Bushy Park, SC X X X
3V Sigma
Georgetown, SC X
Prices
Most large-volume sales to the paper industry are on a contract basis, not according to list prices. Because of the varying
concentrations and types of products (e.g., basic, cationic, or anionic direct), individual dye prices can range from about
$2.00 per kilogram to over $30.00 per kilogram. Most dyes for the paper industry are sold as liquids.
Many imported dyes have traditionally been brought in by US subsidiaries from their foreign affiliates. Beginning in the
2000s, imports of dyestuffs from nonaffiliated foreign producers began making significant inroads into the US dyestuffs
market. Nontraditional dye suppliers (finishers, formulators, and distributors) now account for about 50% of imports, up
from 10% in the late 1980s. China and India are the major exporters of dyes into the United States. The following table
shows unit import values in the last few years.

US unit import values for paper dyes
(dollars per kilogram)
Basic Direct
dyes dyes FWA
2011
Please5.51 8.11
use Adobe, Chrome, 3.61
or Internet Explorer to read this file.
2012 5.14 7.68 4.14
2013 5.18 5.64 4.21
2014 5.67 6.00 4.97
2015
Contact Customer Care (customercare@ihs.com)5.09
5.54 5.95
2016 5.45 5.17 5.34
2017 4.68 5.00 5.38
Source: Global Trade Atlas, Global Trade Information Services, Inc. © 2018 IHS Markit

The driving forces in the NAFTA region are reducing costs while not adding to effluent problems. No new products are
anticipated. Shrinking demand for printing paper has lowered dye consumption levels, although continued growth in
packaging has kept the market from declining further. Consumption of FWAs will continue to fall since its major
application is in printing/writing papers.
Other trends include
• Moving away from basic brown dye for packaging to direct dyes.
• Use of dyes with greater fiber affinity will increase. More cationic direct dyes are expected at the expense of anionic
direct dyes.
• Use of newer specialty pigments, colorants, and dyes for security and proof of authenticity in currency, banknotes,
intellectual property, and copyright holograms is growing.
• Automatic metering, computerized controls, and the desire for less dusting will continue to favor the use of liquids.
• Suppliers will increasingly need to prove that offered products are harmless from a toxicological and environmental
point of view; however, this epicenter is in Europe.
Specialty coatings
NAFTA demand for these specialties is summarized below.
NAFTA consumption of specialty coatings in

papermaking—2017
Silicones 155-160
Fluorochemicals 45-50
Crepe aids 25-30
Coating insolubilizers 20-25
Other 90
Total 335-355
Silicone fluids are used mainly for pressure-sensitive adhesive labels and tapes, a growing market for both domestic use
and for export. Silicone fluids are used primarily to coat release paper used as a backing for pressure-sensitive adhesive
labels and tape. Additionally, silicone-treated release paper is used as a wrap for extremely sticky substances such as
asphalt and uncured rubber. The fluids give paper a water-resistant or water-repellent finish. Although silicone fluid may
be relatively expensive compared with more conventional polyethylene or waxes, silicones are effective at much lower

levels of application. Silicone fluids are also reportedly used as a specialty surface coating for copier paper to aid in the
production of a hard, smooth surface.
Fluorochemical treatments amounted to an estimated $45–50 million in 2017. To improve packaging appearance, pet
food cartons and bags Please
require a use Adobe,
product that isChrome,
treated (toporand
Internet Explorer
back) with to read copolymer
a fluorochemical this file. to resist the
penetration of grease and oil. Fluorochemical coatings are also used for candy and baking packaging, fast-food wrappings,
snack foods, margarine, and other packaging of oily contents. Fluorochemicals are expensive and consequently used only
in special applications. The efficiency of the fluorochemical is enhanced by the use of polyvinyl alcohol in the binder
systems. Contact Customer Care (customercare@ihs.com) if you have any questions.
Fluorochemicals have been used in the manufacture of oil-resistant paper and paperboard, and other specialty grades. The
fluorochemicals that are best suited are characterized by a long perfluorocarbon chain attached to either a functional
group or a polymer backbone. Suitable fluorochemicals include fluorochemical copolymers and fluorochemical
phosphates; the latter are the most commonly used since they are approved by the FDA for direct-food-contact packaging.
These products, provided as 33% by weight solids solutions in water with an organic cosolvent, can be retained efficiently
by the use of cationic retention aids. Although fluorochemicals provide excellent oil and grease resistance, they do not
provide sizing against aqueous penetrants. When both oil and water resistance are desired, the fluorochemical phosphates
usually are used with AKD sizes.
Crepe aids are applied to tissue and toweling papers frequently to differentiate one producer’s product from another and
also to assist in increased productivity. Epichlorohydrin-based products from Solenis are prominently used. Market size
was estimated at $25–30 million in 2017.
Insolubilizing or cross-linking agents are frequently used to make the surface of coated papers more water-resistant. These
products provide additional wet strength and have often been referred to as starch insolubilizers or binder insolubilizers.
They are most commonly applied to the surface. In 2017, an estimated $25–30 million of binder insolubilizers were
consumed. Glyoxal and ammonium zirconium carbonate are the most commonly used.
The Other category includes a myriad of other chemicals including synthetic microgel silicas that are added to coatings
targeted for ink-jet papers; vinylidene chloride resins used as topcoats; and fabric cleaners, conditioners and wire life
extenders. The latter category has become important in mills in order to prevent or remove deposit contaminants such as
stickies in paper machine clothing and press section rolls.
Major participants
The following table identifies the most prominent suppliers of some of the specialty coatingsused in the NAFTA paper and
board industry.
Major NAFTA suppliers of specialty coatings—2018

Coating insolubilizers
BASF
Bercen
Crepe aids
Solenis
Fluorochemicals
Chemours
Solvay Solexis
Silicone fluids
Dow Corning
Momentive Performance Materials
Wacker Silicones

Prices
Average selling prices for selected coating specialties in 2017 are as follows (per kilogram): fluorochemicals, $10.00–15.00;
glyoxals, $1.35–1.70; silicone fluids, $8.00–9.00; and zirconium carbonates, $1.70–2.00.
Trends that will impact the use of specialty coatings over the next five years include the following:
• Repulpability and moisture or grease resistance, needed for environmental and better recycling capabilities. Wax,
polyethylene, and adhesives are not water-soluble or recyclable and contribute to stickies/deposit problems as
contaminants from the wastepaper stream.
• Better biodegradability of base stocks for release papers. (A large portion is now plastic base stock.)
• A self-releasing adhesive/silicone combination instead of a release coating on paper.
• Increased purchases of pet food, candy, and take-out meals, requiring higher volumes of greaseproof, nonstick barrier
coatings.
Central and South America

Central and South America is a net exporter of pulp and a net importer of paper products. In 2016, this region produced
16% of the 171 million metric tons of pulp produced globally, but only consumed 5% of it. Of the total global paper and
paperboard production and consumption, the region produced and consumed 5%. Brazil was the world’s second-largest
pulp producer in 2016, next only to the United States. It was the eighth-largest paper and paperboard producer, ranked
between Canada and Finland.
Within Central and South America, the largest producers of pulp and paper are Brazil, Chile, Argentina, and Colombia. In
2016, Brazil accounted for 67% of pulp and paper production in the region, while Argentina, Chile, and Colombia
combined accounted for about 33%. Consequently, these countries drive the overall pattern and growth of paper
chemicals in the region.
Containerboard and tissue grades show the highest rates of growth for the region, pulled by the demand for boxes for
export-oriented fruit production, and general manufacturing, particularly from Brazil. Tissue demand, like
containerboard, follows the general economic cycle, but is also boosted by population growth within the region.
Production of printing and writing paper grades underserves the region, with about 30% of consumption satisfied by
imports from outside the region. Virgin pulp satisfies a higher percentage of furnish needs than in NAFTA, Europe, Japan,
or China.

Estimates of specialty paper chemical consumption are provided in the following table.

Central and South American consumption of specialty paper chemicalsa
Average annual
volume
Please use Adobe, Chrome, or Internetgrowth rate,
2017–22
2011 2014 2017 (percent)
Pulping specialties 1.0 0.7 0.5 0.0
Processing aids
Pitch- and deposit-control agents 48 53 58 2.5
Retention and drainage aids 43 49 50 2.5
Defoamers 12 12 13 2.5
Biocides 10 10 10 2.0
Pigment binders 225 250 250 3.0
Dry-strength additives 109 120 120 3.0
Dyes, pigments, and fluorescent whitening agents 65 63 60 3.0
Sizes 50 51 55 3.5
Coatings and miscellaneous specialties 30 30 30 0.0
Total 678 728 740 2.7%
a. Valued in terms of current US dollars for each year.
Market participants
All the major global paper chemical companies are active in the Central and South American market. The following table
shows the known suppliers of specialty paper chemicals in the region.
Major South American suppliers of specialty paper chemicals—2018

Pitch Retention
Dyes and and Wet- Misce-
Dry- and deposit drain- strength llaneous
Company and Bleaching De- strength colorant Pigment control age addi- special-
location specialties foamers additives pigments binders agents aids Sizes Biocides tives ties
Argentina
BASF Argentina S.A.
General Lagos, Santa Fe X
Cota S.A.
Buenos Aires X
Químicos Essiod S.A.
Buenos Aires X
Brazil
AkzoNobel Pulp and Performance Química
Ltda.
Jundiaí, São Paulo X X
Rio de Janeiro X
Alltec Química Ltda.
Aracatuba, São Paulo X X
Archroma Brazil
Resende, Rio de Janeiro X X
Suzano, São Paulo X X X
Art Aratrop Industrial
Jardinopolis, São Paulo X X
Ashland Hercules Produtos Químicos Ltda.
Leme, São Paulo X X X X
BASF S.A.
Guaratinguetá, São Paulo X X X

Major South American suppliers of specialty paper chemicals—2018 (continued)
Pitch Retention
Dyes and and Wet- Misce-
Dry- and deposit drain- strength llaneous
Company and Bleaching
Please De-
use Adobe, strength
Chrome, or Internet colorant
Pigment Explorer to read this file.
control age addi- special-
location specialties foamers additives pigments binders agents aids Sizes Biocides tives ties
Paulinia, São Paulo X
Buckman Laboratories Ltda.
Sumare, São Paulo X X
Chemicon S.A. Industria Químicas
São Paulo, São Paulo
Contact Customer Care
X
X
DFM Industria Química Ltda.
Jandira, São Paulo X X X X X
Dynatec Industrias
Químicas Ltda.
Itupeva, São Paulo X X
Industrias Químicas
Taubaté S/A
Taubaté, São Paulo X
Inpal S.A. Industrias Químicas
Rio de Janeiro, Rio de Janeiro X X X
IPEL—Itibanyl Produtos Especiais Ltda.
Jarinu, São Paulo X
Kemira Chemicals
Brasil Ltda.
Telemaco Borba, Paraná X
Lamberti Brasil Productos Químicos Ltda.
Nova Odessa, São Paulo X X
Miracema-Nuodex
Industrias Químicas Ltda.
Campinas, São Paulo X
Nitriflex S.A. Industria e Comercio
Duque de Caxias, X
Rio de Janeiro
Solenis
Paulinia, São Paulo X X X X X
Trinseo
Guarujá, São Paulo X
Wacker Química do
Brasil Ltda.
Jandira, São Paulo X
Chile
Harting S.A.
Quilicura X
Europe
The estimated 2017 value of specialty paper chemical consumption in Europe was $3.3 billion. Specialty paper chemical
consumption is expected to decline at an average annual rate of 1% during the 2017–22 period. Consumption data and
growth rates for the various specialty paper chemical categories are presented in the table below.

European consumption of specialty paper chemicalsa
Average annual
volume
growth rate,
2017–22
2008 2011 2014 2017 (percent)
Bleaching specialtiesb 163 148 116 63 -1.0
Deinking agents 65 62 53 45 -0.3
Pulping specialties 16 11 6 1 -4.0
Processing aids
Retention and drainage aids 412 350 350 220 -1.0
Pitch-control agents 245 212 218 185 -1.0
Slimicides/biocides 45 38 84 57 -1.2
Defoamers 66 53 77 116 0.0
Pigment binders 1,850 1,637 1,460 1,160 -3.0
Dry-strength additivesc 929 779 755 642 1.5
Dyes, pigments, and fluorescent whitening agents 490 388 376 190 -2.5
Sizes 396 354 290 282 0.0
Wet-strength resins 96 89 199 170 1.5
Specialty coatings 419 266 258 219 -2.5
Total 5,189 4,386 4,242 3,352 -1.1%
a. Based on the following exchange rates (euro per dollar): 2008 0.68; 2011 0.73; 2014 0.753; 2017 0.886.
b. Data do not include peracetic acid and sodium hydrosulfite.
c. Includes starch.
Functional chemicals represented the largest group of specialty paper chemicals in 2017, accounting for 79% of European
consumption, followed by processing aids with 17%, and pulp and fiber treatment chemicals with 3%. Pigment binders
were the largest segment, accounting for almost 35%, followed by dry-strength additives at 19%. Water treatment
chemicals used in the paper industry are not included in specialty paper chemicals.

The European market for specialty reductive bleaching agents and bleaching stabilizers were valued at about €213 million
or $240 million in 2017. The following table shows the types of chemicals used in bleaching in Europe.

European consumption of bleaching specialties—2017
Average annual
volume
Volume Average Value growth rate,
(thousands of concentration Millions of Millions of 2017–22
metric tons) (percent) euros dollarsa (percent)
Bleaching agents
Sodium hydrosulfite 165.0 88 148.5 167.8 —
Sodium borohydride 7.0 12 if you have
Contact Customer Care (customercare@ihs.com) 30.0 any questions.
33.9 —
Peracetic acid 6.0 38 8.4 9.5 —
Formamidine sulfinic acid (FAS) 3.5 32-35 6.1 6.9 —
Total bleaching agents 181.5 193 218.1 -1.0%
Bleaching stabilizers
DTPA/EDTA chelating agents 14b 38-40 19.5 22.0 -0.5
Total 195.5 213 240 -1.0%
a. Based on an exchange rate of $1.13 per euro.
b. As 100% solids.
c. As 38–40% solution of sodium salts.
Source: IHS Markit.
Consumption of specialty bleaching agents and stabilizers is expected to decline by 1% annually during the 2017–22
period.
Mills have the option of purchasing merchant sodium hydrosulfite or manufacturing it on site starting from sodium
borohydride. Sodium hydrosulfite—used especially for bleached thermomechanical pulps (TMPs) and other pulps—is
problematic to handle because it is self-inflammable as a solid (88% active) and difficult to dissolve. When supplied as
solution (13% active), the risk of inflammation decreases, but large volumes of diluted solutions have to be transported, so
transportation costs are an important factor. Therefore, sodium hydrosulfite solution is used by paper mills located near
the producers, mainly in Germany and in Central Europe. Consumption of sodium borohydride is going to increase more
than that of sodium hydrosulfite as pulp mills increasingly switch their bleaching processes from the use of powder
sodium hydrosulfite to liquid sodium hydrosulfite generated on-site from sodium borohydride. This switch has already
largely occurred in the Scandinavian countries, where most large mills that supply the newspaper industry are located. In
continental Europe, paper mills that use recycled paper are smaller and still prevalently use powdered sodium hydrosulfite
as a reducing agent.
Consumption of formamidine sulfinic acid (FAS) depends on a large number of factors—the price of recycled paper, the
price of virgin pulp, and the price of the competitor product sodium hydrosulfite. The largest consumers of FAS in Europe
are in continental Europe, where paper production relies to a large extent on recycled fibers, while Scandinavian mills
operate largely with virgin pulp.
In Europe, ethlylenediaminetetraacetic acid (EDTA) is sold mainly as a 38–40% solution of the tetrasodium salt and to a
minor extent as acid (98–99% powder). Pentasodium diethylenetriamine pentaacetate (DTPA) is used mainly as a 40%
solution of the pentasodium salt. DTPA gained importance during the 1980s when the pulp and paper industry shifted
from reductive bleaching (with chlorine derivatives) to oxidative bleaching (with chlorine dioxide or hydrogen peroxide).
Market participants
The major suppliers of bleaching specialty products in Europe are listed in the table below. The trade names for sodium
borohydride are BorolTM in the case of Vertellus and KemBorino in the case of Kemira. Sodium borohydride solution is a
reducing agent that offers an easy and economical way to generate sodium dithionite for the bleaching of mechanical
pulp—by mixing sodium borohydride solution, caustic soda, sulfur dioxide, and water.

Major European suppliers of bleaching specialties—2018
Bleaching agents Chelating
Peracetic Sodium Sodium agents
Company Country acid borohydride hydrosulfite DTPA EDTA
AkzoNobel Functional Chemicals BV Netherlands
Please use Adobe, Chrome, or Internet Explorer to read thisX file. X X
BASF Germany X X X
DowDuPont Netherlands X X
Evonik Germany X
Idrosol Srl Italy X
Kemira Oyj Finland
X
Contact Customer Care (customercare@ihs.com) ifXyou have any Xquestions.
L. Brüggemann KG Germany X
Protelor SARL France X X
RV Chemicals Ltd. United Kingdom X
Solvay Chemicals Belgium X
Vertellus Netherlands X
Vertellus is the largest supplier of the chemical to the pulp and paper industry globally, with an estimated 30% share of the
market for reductive bleaching. Its product Borol™ is a water-based solution of 12% sodium borohydride and 40% caustic
soda, and is used to generate sodium hydrosulfite in situ. For color stripping of wastepaper, Vertellus offers Direct Borol
Solution Injection (DBI), which is directly injected into the pulp, previously treated with sodium bisulfite and pH
adjusted. As a result, three reducing agents are active on the recycled paper pulp—the weak reducing agent sodium
bisulfite, sodium hydrosulfite generated on-site, and the very strong reducing agent sodium borohydride. Kemira supplies
the market with papermaker-grade sodium borohydride solution, KemBorino, which is sold to the paper industry to
generate sodium dithionite for the bleaching of mechanical pulp. Kemira markets sodium hydrosulfite in a liquid
formulation under the trade name Borditi which improveed safety in mechanical pulp bleaching . It has a dithionite
content of between 10% and 12%. The technology is based on a dithionite reactor unit that produces dithionite from
sodium borohydride, caustic soda, and sulfur dioxide. This way the mills can avoid the safety risks related to the handling
of the powder, which makes dust and has a tendency to ignite.
The largest producers of the chelating agents EDTA and DTPA in Europe (for all industrial applications) are AkzoNobel
with a 45% share, followed by BASF (30%), and DowDuPont (10%).
Prices
The following table shows typical prices of bleaching specialties in Western Europe.
European prices for bleaching specialties—2017

Average
concentration Euros per Dollars per
(percent) kilogram kilograma
EDTA/DTPA, sodium salts 38 0.60-0.70 0.70-0.80
Peracetic acid 38 1.40-1.60 1.60-1.80
Sodium borohydride 12 1.50-2.50 1.70-2.80
Sodium hydrosulfite 88 1.00-1.20 1.10-1.40
a. Based on an average 2017 exchange rate of $1.13 per euro.

Because large volumes of chelating agents enter effluent treatment systems, the environmental fate of chelating agents
has come under debate. In Europe and in other regions, the poor biodegradability of EDTA and DTPA in the environment
raised questions about the efficacy of using these chemicals. There has been considerable research into finding alternatives
such as compounds based on aspartic acid diethoxysuccinate.
In Europe chlorine is no longer used in bleaching. Regionally this was achieved through different methods. The Swedish
solution to the AOX load in the effluent is an ECF-light sequence. Mills pulp to low kappa numbers, use oxygen intensely,
and apply even chlorine dioxide at rather low levels. The main chemical for bleaching is hydrogen peroxide. Sodium

chlorate is applied in large quantities. In North and South America, the solution was less capital intense: chlorine is
replaced by chlorine dioxide and the lower effectiveness of the latter is compensated for by reinforcing the extraction
stages with hydrogen peroxide.
Please
Enzymatic bleaching offers use Adobe,
an interesting Chrome,
alternative or Internet
in bleaching Explorer
processes. to read
Enzymes usedthis file.
are generally xylanases,
natural enzymes derived from certain species of fungi that attack xylan. Pretreatment of wood with xylanase can reduce
the quantity of bleach needed by 15%. It also costs half as much as chlorine per unit of bleaching power.
Archroma (formerly
ContactClariant) developed
Customer and(customercare@ihs.com)
Care introduced an enzymatic bleaching aidhave
if you (basedany
on the xylanases, with the
questions.
trade name Cartazyme™) that reduces or avoids the need for chlorine or chlorine dioxide for kraft pulp bleaching; less
AOX (adsorbable organic halogen) is generated. Novo Nordisk in Denmark has developed a xylanase enzyme that allows
for chlorine dioxide in the bleaching process.
Deinking agents
The following table shows consumption of deinking agents in Europe.
European consumption of deinking agents—2017

Average annual
volume
(thousands of concentration Millions of Millons of 2017–22
Fatty acids 38 >95 22 25 -0.3
Fatty acid/fatty alcohol derivatives 12 >95 9 10 -0.3
Nonionic surfactants 4 >95 9 10 -0.3
Total 54 40 45 -0.3%
In 2016, the European paper industry utilized 47.8 million metric tons of recovered paper for the production of paper and
board. Usage was mainly for packaging paper and board (74%), sanitary papers/tissues (38.5%), and newspapers and
magazines (28%). The vast majority of the paper has been printed before so that the main use of chemicals in the recycling
process is deinking. It is estimated that about 20 million metric tons of recycled paper were deinked. Of this, about 17.5
million metric tons utilized flotation deinking (principally for newspaper and tissue) and the rest used the washing
deinking process (mainly for tissue). The majority of recovered paper is not deinked, but processed into packaging
materials.
European consumption of deinking specialties was valued at €40 million in 2017. The market for deinking specialties is
expected to stagnate during 2017–22. Fatty acids are the major deinking agents used in Europe. In 2017, an estimated
38,000 metric tons, valued at €22 million, were consumed. Soaps used as collectors, like sodium stearate, are used in a
volume of about 12,000 metric tons, valued at €9 million, and about 4,000 metric tons of dispersants (generally nonionic
surfactants like fatty alcohol polyglycol ethers and esters) were consumed, valued at €9 million.
Most bleaching chemicals used in deinking operations are commodities or pseudo commodities. A specialty chemical used
for reductive postbleaching in deinking operations is formamidine sulfinic acid (FAS). More detailed information on FAS
is given in the Bleaching specialties section.
Market participants
The major suppliers of deinking specialties in Europe and their products are shown in the following table.

Major European suppliers of specialty deinking products—2017
Flotation deinking
Collectors Wash
Dispersions/ Fatty deinking
Company Country emulsions acids Soaps Dispersants dispersants
AarhusKarlshamn Denmark, Sweden Raisapon Raisapon Raisapon
Kemiraa Finland Berocell Berocell Berocell Berocell Berocell
Ecollect Ecollect
Kolb Distribution Ltd Switzerland
Contact Customer Incopur
Care (customercare@ihs.com) Incopur
if you Incopur
have any questions.
Solenisb Norway Nopcoflot Nopcoflot Nopcoflot Nopcosperse Nopcosperse
Oleon N.V. Belgium Radiaflot Radiaflot Radiaflot Radiaflot Radiaflot
Peter Grevenc Denmark, Sweden Serfax Serfax Serfax
a. Formerly Eka Chemicals.
b. Formerly NOPCO.
c. Acquired from Stephenson Group in 2014.
Prices
In 2017, typical selling prices in Europe were: fatty acids, in bulk, €0.50–0.60 per kilogram; soaps, €0.65–0.70 per
kilogram; and nonionic surfactants, €2.00–2.50 per kilogram.

In Europe, the amount of recovered paper has plateaued. Therefore, particularly for the removal of toners, inks, and
adhesives, a recycling-friendly coordination of the utilized processes and products with the paper used has to be taken
into account. This requires the early cooperation of paper manufacturers, publishers, printer manufacturers, toner and ink
suppliers, and specialty chemical companies that develop and manufacture colorants and resins for these imaging
technologies. On the average, newsprint is made of more than 65% recovered paper—in Germany, almost entirely from
recovered paper. There is the potential for further increases in the use of recovered paper in other graphic papers, but
mainly in higher-grade magazine papers. Here, the utilization rate in Europe is still less than 10%. In order to succeed with
the politically desired increase, the recovered paper quality must not decrease any further.
The driver for neutral deinking is a reduction in chemical costs as well as reduction of the number of stickies caused by
alkali-soluble latexes and adhesives that are readily dispersed when wastepaper is pulped with high caustic levels.
Deinking and contaminant removal are critical major barriers in paper recycling. Office wastepaper, unfortunately, is rich
in copier and printer papers, and toners—their electrophotographic inks—are particularly difficult to remove. These are
resilient, plastic polymers that are fused to fibers. Unlike the dispersible inks that occur in newsprint or offset printing,
copier and laser toners do not disperse. The residual ink decreases the brightness, and the toner particles create a
conspicuous background. Microbial cellulases can facilitate the contaminant removal. In essence, cellulases release toners
from fiber surfaces while increasing pulp drainage rates. This combined action facilitates separation of toner particles from
fibers and enhances steps that involve the separation of fiber and water. Washing and flotation become more effective.
Enzymatic deinking could become commercial because the technology fits easily into current fiber recycling practices; it
is less costly than chemical deinking, and more efficient.
Enzyme action is affected by the paper constituents in the deinking condition. The chemically pulped fibers are more
susceptible than mechanically pulped fibers. This is important because mechanical fibers have a lot of lignin left and are
much more resistant to the cellulases. Therefore, this technology works best in mills that are recycling stock paper such as
office waste, which is very high in chemical pulp content.
However, there are significant differences among the deinking behavior of digital printouts generated by the various
imaging processes that are currently on the market. Particularly poor results were observed with liquid toner processes
such as the one used by Indigo. These printers use a fast drying so-called ElectroInk. The toner is transferred from a drum
to the electrostatically charged paper, where it is fused to form a polymer film. When the printed paper is dissolved in the
beginning of the recycling process, these films result in large but very soft particles. These particles can be removed

neither by the usual screens nor through flotation, which is the common process used to separate standard inks from the
paper fibers. The result is a high amount of clearly visible dirt specks in the recycled paper.
Dry toners as they are used in digital four-color printing processes by Xeikon and Xerox create fewer problems. The
Please
resulting brightness and use
residual inkAdobe, Chrome,
are sufficient to lead or
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good deinkability. tothe
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number of dirt specks is still too
high—it is lower than other types of digital prints but still 10–100 times higher than the contamination found when
testing conventional office waste on an industrial deinking line. An additional dispersion step would be necessary to
achieve acceptable results. Differences in the rating of particular processes could be caused by different fusing conditions
Contact
and printing speeds or byCustomer Care (customercare@ihs.com)
different chemistries if you
and melt rheologies of the toner have Obviously,
materials. any questions.
nobody in the past
had thought about the deinking problem. Rather, the aim had been to improve the adhesion of the toner to the paper—
the complete opposite of deinkability. A dialogue between the deinking industry and printer and toner manufacturers is
required in order to solve this problem.
The deinkability of ink-jet prints leads to different results. Black inks contain more and more finely distributed pigments
that can neither be deinked nor discolored. Even 10% of print products with these inks mixed in with other recovered
paper for recycling spoils the deinkability of the whole mixture. Of the dye-based black inks, only a few can be discolored
efficiently. Yellow and blue inks cannot be bleached at all—they leave an even shade in the deinked pulp. Ink-jet printers
are not only used in the office. To make mass mailings more attractive by personalization, ever-rising volumes of direct
mail, billings, statements, and manuals are printed at a breathtaking speed of more than 2,000 pages per minute with ink-
jet printers.
The conventional deinking method is based on an alkaline mix of a variety of chemicals. The high pH level of the process
results in effluents with high chemical oxygen demand (COD). The steady rise in the use of recovered paper in
combination with the deinking process aggravates the industry’s water treatment problems and increases water
treatment costs. Various companies and research institutes are working on projects in areas such as neutral deinking by
using an alternative alkali source with a near neutral pH level of 8.5 such as hydrated magnesium oxide slurries in order to
reduce the COD.
Pulping specialties
Anthraquinone (AQ) is used in Europe to avoid bottlenecks in the pulping process and to increase pulp yield in the range
of 1–1.5%. Dosage rates are in the 200–500 part per million range. It is not required when pulp demand falls and capacity is
not stretched, and, most importantly, when the price for chemical pulp is below $600 per metric ton.
In 2013 AQ was removed from the BfR XXXVI list because of new toxicological data indicating that it is carcinogenic. The
elimination of use in paper and board for food contact caused a drastic reduction in AQ consumption in the pulping
process.
Consumption of AQ in Europe is estimated at less than 500 metric tons in 2017, valued at €0.9 million. AQ consumption
for the next five years is expected to decline further by 3–5% annually, depending also on the development of chemical
pulp pricing.
Major participants
In Europe, AQ is imported as a powder from a variety of producers in China and India, processed by toll manufacturers,
dispersed into a 50% or 60% solids content slurry, and then sold to the pulping industry.
Prices
The price of AQ in Europe has steadily declined because of increased availability through imports from China and India.
The average price for AQ (98% solid) in 2017 was €0.9–3.00 per kilogram.

Enzymes
The European pulp and paper industry is one of most active users of enzymes in their processes compared with other
regions. Please use Adobe, Chrome, or Internet Explorer to read this file.
The annual market value for enzymes consumed in Europe is estimated to be in the range of €30–40 million ($34–45
million). As enzymes are cost-efficient in replacing chemicals, demand in the paper industry is expected to grow at 3–5%
per year during the 2017–22 period.
Market participants
The major market participants in Europe are shown in the table below.
Major European producers/suppliers of enzymes to the pulp and paper industry—2018

Country Typea Products
Novozyme Denmark P Fibercare, Biobrite, Pulpzyme, BioPrep, Aquazym, Teramyl, Resinase,
Stickaway
AB Enzymes/Roal Denmark, Finland P Ecopulp
MetGen Finland P Brila, Lign, Suno, Sekalo, Plata, Forico, Povon
Mare Italy S Marezym
Enzymatic Deinking Technologies (EDT) Netherlands S Enzynk, EnzOx,
Buckman Belgium S Maximzyme, Optimyze, Buzyme, Vybrant
a. P - producer, S - supplier (majority of products sourced outside).
Prices
Prices for enzymes are difficult to compare for the following reasons:
• In many cases, mixtures of enzymes are applied. This means that two enzyme preparations offered for a certain
application contain different enzymes in varying concentrations and cannot be directly compared by price per unit
• The activity of enzyme preparations is not measured with a standardized method. Each company has its own activity
scale, which therefore is not comparable.
In unit prices, enzymes are more expensive than traditional paper chemicals, but because they are used in considerably
lower dosages, they can be very cost efficient.

The usage of enzymes in the pulp and paper industry is bound to grow considerably as they are cost effective as well as
“green” and renewable, which would help the industry’s reputation.
Processing aids
Consumption and market
The following table shows consumption of specialty retention and drainage aids in Europe.

European consumption of specialty retention and drainage aids—2017
Average annual
volume
Value growth rate,
Millions of Millions of 2017–22
euros dollarsa (percent)
Polyacrylamides 120 136 —
Polyethyleneimine/polyamines 40 45 —
Microparticlesb 35 40
Contact Customer Care (customercare@ihs.com) if— you have any questions.
Total 195 220 -1.0%
b. Colloidal silica or bentonite-based specialty products.
The European market for specialty retention and drainage aids (including single, dual, and microparticle systems, but
excluding starches) amounted to about €195 million ($220 million) in 2017. Overall consumption for this market during
2017–22 is expected to decline by 1% per year. Nearly 50% of the polymer retention aids consumption in Europe is based
on polyacrylamides, valued at approximately 120 million. Bentonites/montmorillonites and colloidal and nano-sized
silicas dominate the microparticle dispersions market, which is estimated at €35 million (bentonites/montmorillonites
accounting for about 60% and silicas for 40%). Polyamidamines, polyethyleneimines, and other cationic polymer products
are valued at €40 million.
The main retention problems are a consequence of the upgrading of paper grades (e.g., newspaper paper) requiring the use
of more fillers, changing raw materials in papermaking (e.g., using more recycled paper, more fillers, other pulp types), the
need to close water circuits while maintaining acceptably low levels of fines, and the change to papermaking in neutral or
alkaline conditions. Effective retention and drainage aids can greatly improve the dewatering of the web as well as the
two-sidedness of the paper sheet. The trend toward multicomponent retention systems is continuing as a result of
enhanced formation and draining effects using colloidal-based, microparticle products. Paper mills and paper chemical
companies are trying to increase synergies between retention/drainage aids, sizing chemicals, and coating binders. When
better performance in the wet end is achieved, less costly latexes and coating additives can be used.
On a volume basis, single-polymer retention systems are used for 25–30% of graphic and packaging paper production,
dual-polymer retention systems for 30–40%, and microparticle systems for 35–40%. Use of the dual and multicomponent
retention systems will replace conventional single-polymer retention systems. Fine paper production processes in Europe
use microparticle retention systems almost 100%.
Market participants
Major suppliers of specialty retention and drainage aids are shown below.
European suppliers of specialty retention and drainage aids—2018

Synthetic Microparticle
polymers retention system
Archroma Cartafen
Cartaretin
BASF Polymin Hydrocol
Percol Particol
Polyflex
Buckman Laboratories Mosaic
Kemiraa Fennopol Fennosil
SNF/Axchem Polysinth
Solenis PerForm PerForm
Praestaret
a. Kemira acquired AkzoNobel’s global paper chemicals business in May 2015.

BASF is the leading European supplier of single-polymer retention and drainage aids in terms of sales, followed by Solenis;
the biggest players in dual polymer systems are BASF and Kemira. Since retention control is a key technology in the wet
end, leading suppliers like Kemira, BASF, or Archroma (formerly Clariant) tend to gather related wet-end specialties
around retention technology as core businesses. With the acquisition of AkzoNobel’s paper business, Kemira established a
very strong position inPlease use chemicals
the wet-end Adobe, Chrome,
business byor Internet
offering Explorer of
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read this file.
technology, wet-strength
resins, and sizes. Archroma offers a combination of retention aids, biocides, dyes, and additives for the control of
interfering substances, putting the company in a strong position in the industry. BASF is offering retention systems
together with and dry-strength resins. Building up such synergistic product packages requires knowledge and capability in
Contact
retention technology, Customer
which Care
poses a very (customercare@ihs.com)
high if you have any questions.
barrier for potential new entrants.
BASF’s polyvinylamines (PVAm) can be used (depending on the choice of molecular weight, charge density, and degree of
hydrolysis) as flocculants, retention and drainage aids, and for sequestering undesirable substances.
Prices
Average prices in Europe are shown in the following table.
European prices for specialty retention and drainage aids—2017

Euros per Dollars per
kilogram kilograma
Bentonite/montmorillonite-based microparticle systems 0.40 0.45
Polyacrylamide dispersions and emulsionsb 2.50-3.00 2.83-3.39
Polyacrylamide powders 3.00-4.00 3.39-4.52
Polyethyleneimine solutions 1.50-1.60 1.70-1.81
Silica-based microparticle systems 0.45 0.51
b. 50% solids content.

The following table shows consumption of specialty pitch- and deposit-control/detackification agents in Europe.
European consumption of specialty pitch- and deposit-control/detackification

agents—2017
Average annual
volume
(thousands of Millions of Millions of 2017–22
metric tons) euros dollarsa (percent)
Adsorption/coagulationb 21 49 55 —
Adsorption talc 140 45 51 —
Dissolution 11 42 47 —
Dispersion/detackification 10 23 26 —
Other (enzymes, biodispersants) — 5 6 —
Total 182 164 185 -1.0%
b. Excludes talc.
In 2017, consumption of nonionic surfactants for adsorption/coagulation totaled 21,000 metric tons, valued at
approximately €49 million ($65 million). Consumption of micronized talc as a control agent for interfering substances in
papermaking (with a specific surface area of 10–13 square meters per gram) was about 140,000 metric tons, valued at €45
million ($51 million).

The estimated total value of the consumption of control agents for interfering substances in Europe was €164 million
($185 million) in 2017, and the volume is expected to decline by 1% annually.
Market participants Please use Adobe, Chrome, or Internet Explorer to read this file.
The principal European suppliers for various control agents for interfering substances are listed in the table below.
Major European suppliers of pitch-control agents—2018

Fixing have any questions.
Contact Customer Care (customercare@ihs.com) if you Multicomponent
Company Location Dispersants agents systems
Archroma Switzerland Cartafix X
BASF Germany Tamol Alcofix, Catiofast X
United Kingdom Fixacol
Buckman Laboratories sa Belgium Busperse X
Ecolab-Nalco Company United Kingdom X X
Kemira Finland Fennopol, Fennofix, Fen-
nofloc
Kolb Distribution Ltd Switzerland Hedipers Hedifix X
Kurita Germany Bekaperg; Labufloc CL
Dispersogen
Solenis (formerly Nopco Paper Technology) Norway Terpilon Terpilon
Protex International S.A.S. France Acrylron Protefix
Solenis Switzerland DeTac Zenix
Medium-sized and smaller companies like Kolb and service companies like Buckman Laboratories have developed sound
expertise and established a solid market position. This is essentially a problem-solving-oriented, and therefore a service-
intensive, business. Selling prices are a minor purchasing criterion. The effectiveness of a control agent for interfering
substances can be tested only on the paper machine, and testing the long-term behavior of these agents requires close
cooperation and confidence between supplier and customer.
Prices
European prices in 2017 for specialty control agents for interfering substances were about €2,000–2,500 per metric ton
for cationic polymers, €280–300 per metric ton for talc, and €2.00–2.50 per kilogram for nonionic surfactants.
Biocides
Chemical consumption for microbiological control is dependent on pulp and paper production, the use of recycled paper
and paperboard as a fiber raw material, and the number of paper mills working with closed-loop water systems.
The following table shows consumption of specialty biocides in papermaking in Europe.

European consumption of major specialty biocides in papermaking—2017
Average annual
volume
Value growth rate,
Millions of Millions of 2017–22
euros dollarsa (percent)
Haloaminesb 28.5 32.2 0.0
Bromine-containing compounds 18.0 20.3 -3.0
Quaternary ammonium compounds 2.8 3.2
Contact Customer Care (customercare@ihs.com)-3.0
Organosulfur compounds 1.3 1.5 -2.0
Total 50.6 57.2 -1.2%
b. Haloamines can be generated from ammonium compounds like NH4Br/(NH4)2SO4 and active halogen compounds like hypochlorite; the latter may be
electrochemically generated on-site.
The paper industry differentiates between oxidizing and organic biocides. Typical examples for oxidizing biocides are
hydrogen peroxide or peracetic acid. Likewise, glutaraldehyde is considered a commodity. Those types of biocides are not
included in this report as they are not regarded as specialty chemicals, which leads to a smaller reported consumption
value. The market share of the commodity biocides is estimated to be between 55% and 60% of the market. It should also
be noted that the overall growth of biocides is regarded to be positive in the 2017–22 period as hygiene demand for paper
machines is increasing, which increases usage of oxidizing biocides.
European consumption of specialty slimicides/biocides as active ingredients in the pulp and paper industry is valued at
about €63 million ($71 million) in 2017. However, these products are usually formulated and sold with service. The
estimated total value of biocidal products and service sold to the paper industry in Europe in 2017 was around €105–110
million ($121 million). Overall, usage of specialty organic biocides in the pulp and paper industry is expected to decline by
1–2% from 2017 through 2022.
European consumption of bromine-organic compounds including bromonitropropanediol (bronopol [BNPD]) and 2,2-
dibromo-3-nitrilopropionamide (DBNPA) consumption was valued at €16 million ($30 million) in 2017. Consumption of
both chemicals is expected to decline by 1–2%.
Most of the biocidal quaternary ammonium compounds used in Europe fall into three subclasses—
alkylbenzyldimethylammonium chloride (ABDM) or benzalkonium chloride, such as cocobenzyldimethylammonium
chloride; dialkyldimethylammonium chloride (DADM), such as didecyl dimethyl ammonium chloride; and
alkyltrimethylammonium compounds (ATM), such as cetyl trimethylammonium chloride. The 2017 market value of these
compounds is estimated at €2.4 million ($2.9 million) while consumption of the biocidal quaternaries is projected to
remain constant. ABDM has lost market share to DADM over environmental concerns. DADMs, although more expensive
than ABDMs, have a more favorable ecological and efficacy profile than ABDMs. Short-chain alcohols (C8–C10) are used as
raw materials for the production of DADM. These alcohols are also used in the production of biodegradable lubricants,
which are increasingly in demand. ATM is more of an industrial biocide and its consumption is not expected to change in
the future. Quaternaries tend to be biodegradable and, with growing environmental awareness, will benefit from the
pressure being put on other biocides. No truly new products are expected; instead, combination products containing
different quaternaries and surfactants will continue to enter the marketplace.
Organosulfur compounds include 3,5-dimethyl-tetrahydro-1,3,5-2H-thiadiazine-2-thione (dazomet), dithiocarbamates,

methylene bis-thiocyanate (MBT), isothiazolinones, chlorosulfones, and benzothiazoles, plus some other organosulfur
compounds. The 2017 market value is estimated at €1.3 million ($1.5 million). Consumption of organosulfur biocides will
decline by 2%. Dazomet is mainly used in water treatment in different industries, particularly pulp and paper.
Isothiazolinones are used as microbiocides and slimicides for industrial cooling waters and for preservation in many
outlets. They have been used where formaldehyde-free products are required. They are available as 10% and 20% active
solutions, as a 33% pourable dispersion, in the form of pressed paste, and in combination with a wide range of other active
ingredients depending on the chemical type of isothiazolinone derivative. Benzisothiazolinone (BIT) is the most used.
Because of the allergenic potential of isothiazolinones, the European Commission is considering labeling formulations

that contain more than 15 parts per million of isothiazolinone as R43 (“may cause sensitisation by skin contact”).
Chlorosulfones such as bis-trichloromethyl sulfone are used in the water treatment and paper industries. Benzothiazoles
such as thiocyanomethylthiobenzothiazole (TCMTB) are used as preservatives, particularly for leather, sawed timber, and
paint film protection. They are also used in water treatment, particularly in the pulp and paper industry.
The use of dazomet and mercaptobenzothiazole in paper mills and in water treatment applications will diminish because
of some concerns regarding their irritating effects and poor solubility. The use of dithiocarbamates in the paper industry is
banned in several countries such as Sweden and the Netherlands because of their carcinogenic by-products. Consumption
Contact
is expected to decline Customer
in this Care
application. (customercare@ihs.com)
Methylene bisthiocyanate (MBT) isifused
youforhave
slimeany questions.
control in industrial water
treatment. The increasing number of mills operating at an alkaline pH has resulted in diminished use of MBT and it is
estimated that consumption will further decline. There are also environmental concerns, especially in Scandinavian
countries regarding its disposal in wastewater. Consumption of chlorodimethylsulfone has ceased, mainly because of its
unfavorable cost-efficiency ratio. Manufacturers, therefore, need to undertake further toxicity texts, which might not be
financially feasible. Products that would benefit from this development include dazomet, dithiocarbamate, TCMTB, and
isothiazolines.
Market participants
The suppliers of slimicides/biocides to the European pulp and paper industry can be divided into three distinct groups.
• Biocide active ingredient manufacturers, which sell directly to end users but also sell through formulators, service
companies, and distributors.
• Formulation/service companies that purchase biocides and formulate them into their own products and then sell to the
end users.
• Distributors, which act as agents for both active manufacturers and formulators.
More than 350 companies in Europe produce, formulate, or trade in about 250 biocidal active ingredients in 3,000–5,000
products. The European producers of biocides are generally large chemical companies with production capabilities for a
variety of product types including raw materials, intermediates, and finished products for detergents and toiletries. Most
producers of biocides manufacture them as spin-offs of existing products, and many produce only one or two of the eight
major types.
The major biocide companies have additional divisions like agricultural chemicals, dyestuffs, fibers, inorganic chemicals,
organic chemicals, plastics and surface coatings, or rubbers. The number of pharmaceutically oriented biocide suppliers in
Europe is dwindling as a result of spin-offs and divestment.
Companies are moving away from a market rationale for construction of dedicated facilities, as production volumes are
not as great as before and new compounds are both more complex and more active. In many cases, biocides are produced
at the same manufacturing unit as, for example, agrochemicals and pharmaceuticals, using different reactors in the same
facility. Such multipurpose plants are capable of making a whole range of products either in series or in parallel.
The structure of this business in Europe depends on such factors as the strategy of the company and the market segment
in question. In some companies (e.g., DowDuPont, BASF), nearly all sales of active ingredients are to formulators. Other
producers (e.g., Solvay) also sell formulated products that are then made available to customers, which could also be
service companies. Some companies provide service in addition to their formulation activities. There are also companies
such as Buckman Laboratories of Belgium and Lamirsa of Spain that serve only certain industries, depending on how
people-intensive the service requirement is.
Formulators are an important link between producers and end users. Most formulator/service companies concentrate on
specific market segments such as wastewater or pulp production. They operate both nationwide and regionally and
account for up to 80–90% of biocide consumption. Because of the high costs, formulators did not register their biocides
directly, at first. Before the Biocidal Products Directive/Regulation (BPD; now the BPR) was imposed, registration was
done only by the producers of the active ingredients (in most cases larger companies with the necessary infrastructure to

absorb registration expenses); under the BPR (see the Government regulations section) biocide producers are now
obliged to register their products, which adds substantial costs to these companies and will hinder the development of
new products.
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Major suppliers of slimicides/biocides Chrome,
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pulp- and Explorer
papermakers to read
(both active this file.
ingredient manufacturers and
formulators/service companies) and the products supplied are listed in the table below.
Major European suppliers of organic biocides/slimicides for pulp and paper—2018

Compounds
Organo- Organo- Quaternary Producer Service
Company Location bromide sulfur ammonium of AIa Formulator company
AkzoNobel Surface Chemistry Netherlands/ X X
Sweden
Albemarle Corporation Belgium X X X
BASF Germany X X X X
Buckman Laboratories Belgium X X X
Dead Sea Bromine Israel X MBTa X
DowDuPont Switzerland X X X
Kolb Distribution Ltd Switzerland X X X X
Ecolab-Nalco Germany X X x
Industrie Chimiche Caffaro Italy X X
Kemira Finland X X X X X
Kurita Germany X X x x
Lamirsa Spain X X
Lonza Switzerland X X X
Solenis Switzerland X X X X X
Solvay United Kingdom X X
a. MBT = methylene bisthiocyanate; AI = active ingredient.
Solenis is the major supplier of haloamines (Spectrum), which have replaced many of the classical strong oxidative
biocides used in the past. Dow Europe supplies the European market with DBNPA (Antimicrobial 7287®) from its
production facility in the United States. The markets served are cooling water systems and water treatment in the pulp
and paper industry. BASF Biocides is the largest producer of BNPD, with production estimated at over 1,000 metric tons of
different grades and formulations of BNPD. The largest producers of ABDM are AkzoNobel and LANXESS. The main
players in the DADM business are Lonza and AkzoNobel. Lonza has about 70% of the European DADM market. AkzoNobel
and Lonza are the main players in alkyltrimethyl ammonium compounds. The main European producers of organosulfur
biocides are Solvay, LANXESS, and Buckman Laboratories. The major service companies in Europe are Nalco-Ecolab,
Buckman Laboratories, Solenis, Lamirsa, and Kolb.
The biocides/slimicides business is a critical area for papermakers. Once a system works well, the user is unlikely to change
to another system or supplier. The switch from acid to neutral or alkaline papermaking, the closed water circuits, and the
increasing proportions of recycled wastepaper have exacerbated slime problems. As time progresses, unforeseeable
microbiological resistance problems may appear. Suppliers of biocides, therefore, tend to closely monitor the biological
activity at customers’ paper mills and to change biocide formulations periodically. Overall, sales of biocidal products are
very service-intensive.
Prices
Typical examples of individual products and European prices for these groups are shown in the table below.

European prices for major biocidal products—2017
Price Active
Euros per Dollars per basis
kilogram kilograma (percent)
Acrolein-formaldehyde copolymer 3.00-3.50 3.39-3.96 40
Brominated compounds
2-bromine-2-nitropropane-1,3-diol (BNPD) 8.00-9.00 9.04-10.17 >95
2,2-dibromo-3-nitrilopropionamide (DBNPA) 2.75-3.25 3.11-3.67 20
Organosulfur compounds Contact Customer Care (customercare@ihs.com) if you have any questions.
Dazomet (3,5-dimethyl-tetrahydro-1,3,5-2H-thiadiazine-2-thione) 2.00-2.25 2.26-2.54 99
Dithiocarbamates 2.50-2.75 2.83-3.11 100
Isothiazolinones (BIT) 4.00-5.00 4.52-5.65 10-12
Methylene bis-thiocyanate (MBT) 3.25-7.50 3.67-8.48 10-100
Quaternary ammonium compounds
Alkylbenzyldimethyl (ABDM) 1.00-1.25 1.13-1.41 50
Alkyltrimethyl (ATM) 1.75-2.00 1.98-2.26 50
Dialkyldimethyl (DADM) 2.25-2.75 2.54-3.11 50-80
a. Based on an average 2017 exchange rate of 1.13 USD/EUR

• Mills that recycle wastepaper have an increased need for biocides or more potent biocides.
• More intensive white-water treatment—removing some of the substrates that feed microbes, as is more common in
Europe and Japan—will reduce biocide requirements within a closed loop.
• No new products are expected. The continuing emphasis is on rotation of biocidal products in order to reduce acquired
resistance by microbes. New combinations will make maximum use of available biocide functional capabilities. The
trend toward more water-based (instead of petroleum solvent–based) biocidal formulations continues. Organosulfur
compounds do not readily dissolve in water and the vast majority of these products are not water-based.
Many pulp and paper mills have their entire slime control/biocide addition activity operated by the supplier of these
products and pay for the service on a yearly basis. Thus, papermakers do not have to deal with the microbiological
problems in their mills. Instead, they require from their suppliers smooth performance and compliance with the
regulations regarding permitted biocides and admitted addition levels.
Biocides are under intense scrutiny and have to be approved by food, health, and environmental authorities. This
registration is often time-consuming and can be very expensive. European Commission Regulation 2003/2032/EC
(Biocidal Products Directive) provides details of a 10-year program to review the safety of biocides. The regulations require
the environmental and health hazards of all existing biocidal active substances (23 product types including wood
preservatives) to be reviewed at the EU level. Biocidal products (e.g., wood preservative formulations containing approved
active substances) also need to be approved at the national level.
The BPR has a significant impact on the European market for chemical disinfectant active ingredients. The cost of
undertaking product testing under the directive will force some companies to leave the market and prompt others to form
alliances to help alleviate expenditures. The European Producers of Antimicrobial Substances (EPAS) has welcomed the
proposed directive, which should harmonize varying regulations across the European Union. Although applicable only in
Europe, it is likely that the BPR will replace current US legislation as the global hurdle to a company wishing to develop a
worldwide biocide business.
The European BPR remains a key hurdle for makers and users of biocides and related products. The implementation of the
regulatory schemes in the various member states poses additional challenges to manufacturers of biocide-containing
products. The cost and man hours associated with the BPR are daunting. High regulatory costs will promote large
conglomerates at the expense of smaller producers. Companies will try to develop more critical mass, and new strategic
alliances will form. Development work will concentrate on formulations and blends of existing actives. New product

introductions will be products that are modified or a combination of existing chemistries, and there will be a slower rate of
innovation. Developmental work will be done only for those active ingredients with potential to capture a significant
market share. The development of biocides for small and niche markets will not be economically justifiable. The support
of formulators/marketers will become more decisive for actives manufacturers as it will become more difficult to have
proprietary compounds Please
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processes.
For additional information on biocides in other end-use industries refer to the SCUP Biocides report.
Defoamers Contact Customer Care (customercare@ihs.com) if you have any questions.

The table below shows the size of the market for the main foam-control agents used in the pulp and papermaking process
in Europe by product in terms of quantity and value.
European consumption of defoamers in papermaking—2017

Average annual
volume
Silicones 23 ~25 59 66 —
Fatty alcohols/amides 37 ~30 30 34 —
Polyalkylene glycols 7 30-70 14 16 —
Total 68 103 116 0%
While silicones and oil-based defoamers are used mainly in the pulping process, water-based fatty acid derivatives
(alcohols, esters, and ethers) as well as polyalkylene glycols are used to control foam formation in the wet-end, size press,
and coating units of the paper machine. About 50% by value of defoamer formulations is used in pulp production, 15% in
the wet-end process of the paper machine, 20% during size press and coating operations, and the remaining 15% in the
effluent treatment of the paper mill.
Because of the advance of alkaline papermaking, the increased closure of water circuits, and the higher levels of
interfering substances (e.g., caused by more wastepaper use), foam problems in papermaking will continue to increase.
However, with better and automatic dosing of these additives and the decline in paper production, the volume
consumption for this product group will remain static at current levels over the next five years.
Market participants
In Europe, occasionally companies basic in the manufacture of active ingredients sell foam-control agents to the mills, but
the vast majority of suppliers are formulators. Most formulations are highly specialized and customized products
marketed by paper service companies that solve mill problems, so the business contains an important service component.
Prominent European suppliers of foam-control formulations for the paper industry are shown in the table below.

Major European suppliers of defoamers—2018
Company Location Trade name
Archroma United Kingdom Antimussol
BASF Germany
Afranil,
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Internet
Blackburn Chemicals United Kingdom Dispelair, Cyclon
Elkem Silicones Norway, France Silcolapse
DowDuPont Belgium PulpAid
Kolb Switzerland Paracum/Parafoam
Ecolab-Nalco Germany
Elementis Specialties Netherlands
Kemira Sweden Fennodefo
Kurita Germany Contraspum
Münzing Chemie GmbH Germany Agitan
Schill & Seilacher GmbH & Co. Germany Despumol
Solenis Switzerland Advantage, De-Airex, Protocol,
Antispumin, Nopcomaster
Wacker Germany Pulpsil
The leading European suppliers of defoamer concentrates and dispersions are BASF and Kolb.
Prices
In Europe, average prices for defoamer formulations are shown in the following table.
European prices for defoamer formulations—2017

kilogram kilograma
Fatty acid amides 0.80-1.00 0.90-1.13
Fatty alcoholsb 0.70-0.80 0.79-0.90
Polyalkylene glycols 1.50-2.50 1.70-2.83
Siliconesc 2.75-3.00 3.11-3.39
b. 30% concentration.
c. 25% concentration.

In Europe, oil-based defoaming agents have been replaced by more effective and more environmentally friendly silicone
products and water-based or water-extended defoamers. Papermakers are also very sensitive to the biodegradability of
defoamers in their effluent streams. Defoamer consumption is expected to grow slowly because of improvements in
process technologies, increasing effectiveness of defoamers, and closely controlled dosing. Excess supply and competition
among suppliers is forcing price reductions intensified by the growing purchasing power of large pulp and paper mills.
Another trend is to sell the product with the application technique (e.g., sensors for dispersed air in the liquids), coupled
with electronic control devices for the dosing pumps that allow automatic dosing of the foam-control agents. Specialist
companies like Kolb or Blackburn Chemicals are able to promote this trend, which is, in addition, service-intensive.
However, this ultimately optimizes foam-control costs for the papermaker, since it circumvents the expensive excess
dosing that has been traditional at paper mills. Defoamer manufacturers need to have a local presence to monitor and
adjust metering, carry out tests, and solve problems as they arise.
Pigment binders
The following table gives an example of a typical coating formulation used in Europe.

Typical European paper coating formulation (topcoat)
Calcium carbonate 80 parts
Clay 20 parts
Latex 10
Carboxymethylcellulose 1
Fluorescent whitening agent 0.30
Dispersant 0.25
Insolubilizer 0.20
Alkali 0.15
Source: CPKelco company information for its product Finnfix®CMC. © 2018 IHS Markit
Other formulations may contain a higher proportion of calcium carbonate pigment or, instead of carboxymethylcellulose
(CMC), modified starches.
The pigmented binder/coating can be applied by a number of methods like air knife, bill blade, metering bar, roll blade,
blade, or size press, and may be further processed through pressure rollers or gloss calenders. Generally more than one
coating step is applied, precoat, and topcoat.
In Europe, the principal coated printing papers (like lightweight coated [LWC] paper) are normally precoated with a
formulation containing as much starch as possible (approximately equal proportions of starch and coating binders) applied
at a density of eight grams per square meter. The topcoat has, in Europe, only minimal amounts of starch; CMC is used
instead. The topcoat is applied at a density of about 12 grams per square meter. The synthetic latexes used as binders are
low-viscosity aqueous dispersions. In coating formulations they do not confer properties like viscosity regulation and
water retention that are extremely important for the application process. Therefore, coating systems contain cobinders,
which confer the needed application properties. In Europe, modified starches, casein, CMC, and acrylates are used as
cobinders. Polyvinyl alcohol is another cobinder (see the Specialty coatings and miscellaneous products section of this
report). Lubricants like calcium and ammonium stearates help prevent dusting at the calendering stage and confer a high
gloss to the paper.
Another category of pigment binder used to bind pigments onto the paper web consists of the specialty synthetic latexes.
These binders are used in large amounts in Europe since binders are a major cost factor in the production of coated papers.
The amount and type of binder needed is determined by the intended end use of the paper as well as the type of pulp base.
Producers specifically modify the latex resins for paper use.

In Europe, starch is a major ingredient of paper pigment binder coatings because of its excellent price, binding power, and
paste texture characteristics. A large amount of the starch that is used in coatings in Europe is on-site-converted
unmodified starch, especially for the precoat. The modified starch types used in topcoatings are primarily hydroxyalkyl
starch ethers (hydroxyethyl and hydroxypropyl), oxidized starches, and enzymatically converted starches (low-viscosity
starches converted at the paper mill). Estimated European consumption of starches in pigment binder/coatings
applications in 2017 was about 220,000 metric tons (dry weight basis), valued at approximately €95 million ($107
million). Consumption consists mainly of carboxylated starches and dextrins, as well as 25,000 metric tons of native
starches. Coating starches are derived from the following sources: potatoes (50%), maize (40%), and wheat (10%).
Consumption is expected to remain stable throughout the 2017–22 period.

European consumption of synthetic binders/rheology modifiers in papermaking—2017
Average annual
volume
Volumea Average Value growth rate,
metric tons) (percent) euros dollarsb (percent)
Styrene-butadiene latex 950 ~50 760 859 —
Styrene-acrylate latex 120 ~50 126 142 —
Polyvinyl acetate latex 62 ~50 if you have
Contact Customer Care (customercare@ihs.com) 93 any questions.
105 —
Polyvinyl alcohol 16 100 19.2 22 —
Carboxymethylcellulose 14 96 28 32 —
Total 1,162 1,026 1,160 -3.0%
a. As-is basis.
b. Based on an average 2017 exchange rate of $1.13 per euro.
Binders are used mostly on publication-grade papers, which are directly suffering from the declining advertising activity
in product catalogues, brochures, and inserts for newspapers.
Styrene-butadiene (SB) latex is the preferred binder for paper pigmented coatings. These latexes provide better gloss than
starch, and better ink holdout, greater strength, and better gloss than other latexes. SB latexes are frequently used in
conjunction with starch because of their high pigment binding power, smoothness, high gloss level, and water resistance.
A disadvantage of these SB products is their odor and the tendency of the films to get yellowish when exposed to light for
long periods.
Advantages of the acrylate dispersions are their excellent aging stability and the low odor. This segment includes different
types of copolymers (e.g., styrene-acrylate-acrylonitrile latexes) and terpolymers (e.g., styrene-butadiene-acrylate
latexes). Polyvinyl acetate dispersions do not possess the binding strength of the above-mentioned types but they give
hard and porous films that are very stable to aging.
Until 1999, the styrene-butadiene and styrene-acrylate polymer dispersions market grew at 5–6% per year, double the rate
of papermaking as a whole. Major growth factors were the increased production of coated wood-free papers for printing
applications and the demand for lighter-weight papers where single or multiple coatings have to provide sufficient opacity
and whiteness despite the increased content of recovered fibers. Latex consumption declined from 2002 onwards because
of a drop in advertising. For the formulation of their coating colors, paper mills continue to replace synthetic binders with
less expensive starch-based derivatives, even taking the risk of trading off coating quality. In the past three years, the
consumption of coating binders decreased by about 3% annually owing to the ongoing replacement of synthetic binders
with starch derivatives, the application of lower coating weights, and the higher pigments content in the coating
formulations. The total volume of synthetic coating binders is estimated at 1.16 million metric tons (as-is basis) or about
600,000 metric tons (dry) valued at about €1.0 billion ($1.2 billion). Consumption is expected to decline by 3% annually.
The European market for polyvinyl alcohol in paper coating applications totaled about 19,000 metric tons in 2017, with a
value of €19 million ($22 million). Polyvinyl alcohol is supplied as a partially hydrolyzed or totally hydrolyzed product
(and also chemically modified such as carboxylated or silanized), always as 100% active. The product, which is surface-
applied to paper, functions as a size, pigment binder, and barrier coating. It is often used as a precoating to prevent
penetration and excessive use of other coatings such as silicone resins. The main part is used as a barrier coating, for hot-
sealable coatings, and for the preparation of coating specialties like microcapsules that are used for carbonless copy paper.
This product also fixes fluorescent whiteners, a use that accounted for about 30% of total consumption. Other applications
for polyvinyl alcohol are in coatings for ink-jet papers and thermopapers. Ink-jet coatings contain three major ingredients:
silica pigment, polyvinyl alcohol binder, and a cationic polymer.
Another important component of coating colors is CMC, which acts as a rheology modifier and enables high processing
speeds at coating lines in excess of 2,000 meters per minute. Current speed records in pilot coating lines are in the range of
3,000 meters per minute. In 2017, consumption in this application was estimated at 14,000 metric tons, representing a
value of approximately €28 million ($32 million).

Market participants
The leading suppliers of specialty modified starches for pigment binders/coatings in Europe are—in order—Ingredion
Incorporated, Avebe, SOLAM, and Chemigate Oy .
Ingredion is a US-based company processing corn, tapioca, wheat, potatoes, and other raw materials into ingredients for
the food, beverage, brewing, and pharmaceutical industries as well as numerous industrial sectors such as the paper
industry. With more than 11,000 employees around the world, Ingredion serves customers in more than 60 diverse
markets in over 100 countries. In 2016, net sales reached $5.7 billion, of which about $630 million stem from the paper
business. Contact Customer Care (customercare@ihs.com) if you have any questions.
Aardappelmeel Verkoop Bureau (Avebe) is an Dutch starch cooperative that produces starch products based on potato
starch and protein for use in food, animal feed, paper, construction, textiles, and adhesives. About 3,000 farmers are
members of Avebe. With factories in the Netherlands, Germany, and Sweden, the cooperative processes about 3 million
metric tons of potatoes.
In 2010 Emsland Stärke (Germany) and Lykeby (Sweden) formed SOLAM in a joint venture specializing in starches for the
paper industry. In 2017 Lykeby acquired Emsland Stärke’s stake and is now the sole owner of the company. Production of
the various types of starches is still shared between the two companies.
In 2010, BASF sold its starch business in Europe to Chemigate Oy, a company founded by former managers of the starch
business in Finland. Chemigate’s portfolio includes starch products and cationic reagents such as Raifix®, Raisabond®,
Raisamyl®, and Raisacat®. BASF originally acquired its starch business in its acquisition of Ciba in 2009.
With approximately 18 sites, Europe’s total nameplate capacity for all SB latexes amounted to 910,000 metric tons in
2017. The three largest producers are Synthomer, BASF, and Trinseo.
In 2010, Dow Chemical sold Styron to private equity firm Bain Capital for $1.63 billion. Styron changed its name to
Trinseo in mid-2011 in order to raise up to $400 million in an initial public offering.
Yule Catto & Co. plc completed the acquisition of PolymerLatex from TowerBrook Capital Partners, a private equity firm,
in March 2011 to expand its emulsion polymer business. PolymerLatex was integrated with the company’s Synthomer
business, and its units renamed Synthomer. In addition to supplying latexes for the carpet and paper industries,
Synthomer also manufactures other latexes such as nitrile latex, acrylic latex, and styrene-butadiene-2-vinylpyridine
latex. The company also specializes in polyvinyl acetates, polyvinyl alcohols, acrylic polymers, liquid polybutadienes, and
SB latexes.
BASF increased capacity utilization in 2017 by consolidating production at its plants in Hamina (Finland) and
Ludwigshafen (Germany). The plant in Pischelsdorf (Austria) was sold to Synthomer in 2017.
Versalis was the former elastomers business of Polimeri Europa. It produces SB latexes in Italy and the United Kingdom for
uses in molded and carpet foams, adhesives, paper and paperboard coatings, and carpet backings.
In this consolidating market, Trinseo and BASF are back-integrated. The high water content of the latexes and the fact that
these are large-volume products pose a major logistical problem for suppliers. Therefore, leading suppliers tend to
regionalize their businesses by setting up production facilities in key consuming countries. As the major world producers,
any decisions made by Trinseo and BASF could have large implications for the supply/demand balance for SB latexes.
Prices
Average price ranges in 2017 on an as-is basis for synthetic coating binders in Europe are shown in the following table.

Average European prices for selected synthetic coating binders—2017a
Solids content Euros per Dollars per
(percent) kilogram kilogramb
Polyvinyl acetate latex 50
Please use Adobe, Chrome,1.00-1.10 1.13-1.24
or Internet Explorer to read this file.
Polyvinyl alcohol 100 1.50-1.60 1.70-1.81
Styrene-acrylate latex 50 0.90-0.95 1.02-1.07
Styrene-butadiene latex 50 0.75-0.80 0.85-0.90
a. As-is basis.
Source: IHS Markit.
© 2018 IHS Markit
Prices for SB and styrene-acrylate latexes can fluctuate a lot—by 10–15% within a year, and even by 3–7% within a month.
Factors contributing to market price fluctuations are the actual costs of the major monomers styrene and butadiene,
increasing energy and logistics costs, and the selling power of suppliers to enforce announced price increases for individual
products. All producers are constantly plagued with pricing pressures caused by the escalation of feedstock costs and
increases in overall energy and transportation costs.

Trends in Western European paper coating applications and products that will impact binder usage include the following:
• Increased coater speed.
• Increased print speed.
• Simultaneous two-sided coating.
• New coating technologies such as multilayer curtain coating and spray coating.
• New quality and runnability requirements from digital printing technologies such as ink-jet printers, color laser
printers, and digital printing presses.
With its highly developed performance properties, coated paper will continue to be a favorite material for information and
advertising media in the future. The coating provides gloss, smoothness, fiber coverage, stiffness, and brightness for all
types of papers and boards. Coated papers are used mostly on publication-grade papers, which are directly related to the
advertising activities in product catalogues, brochures, and inserts for newspapers. With the decline in print advertising,
the demand for graphic papers in Europe is expected to decline by 3–4% annually over the next five years. The output of
newsprint and uncoated graphic grades, which is used mainly for office copying and printing, is likely to show a decrease of
4–5%, driven also by a change in working habits. Rather than printing, many home and business users are now
increasingly content to rely solely on electronic documents. This trend has become more pronounced as millennials join
the workforce. Similarly, there is an ongoing shift from print newspapers and magazines to online publications.
Specially designed latexes with high compatibility with active pigments or microcapsules filled with ink are used for the
manufacture of thermal and carbonless copy papers. Chemical companies are working with the paper industry on
chemical and technological developments that will make it possible to produce even smoother and more uniform paper
surfaces, which will further enhance the printability of coated paper.
There are many other challenges for paper latexes. Even with today’s technology, coatings with a thickness of only 20
micrometers can be accurately and evenly applied to eight-meter-wide webs of paper travelling at speeds of 80 kilometers
per hour. Both in the coating process, where film presses are increasingly being used, and in the printing process, there is a
clear trend toward even higher speeds. Likewise, innovations such as waterless offset printing or digital printing are
setting new challenges for paper latex manufacturers too. Freedom from taste and odor are important requirements for
papers that are used in food packaging. Latex producers are working to reduce volatile organic compound (VOC) content
even further. Coating solids will continue to increase and recent developments in high-strength SBR latexes allow lower
binder levels and improved gloss development and ink receptivity.

In Europe, starch and latex manufacturers are continuing to research the performance of their products under the greater
speeds of coating machines. Some 30 years ago, coating speeds of 600–700 meters per minute were used; speeds have
been brought up to 2,000 meters per minute or more for lightweight coated paper. Pilot coating lines today exceed speeds
of 3,000 meters per minute. The higher speeds require more sophisticated coating formulations to withstand the higher
shear forces. Please use Adobe, Chrome, or Internet Explorer to read this file.
Technical cooperation with leading machinery and equipment suppliers to the paper industry is a key source of insight to
arising technological trends, which allows a specialty chemicals supplier to direct R&D work and marketing to areas of
potential interest.
In order to reduce the number of web breaks and improve the runnability of a high-volume LWC paper machine, new
coating technologies such as curtain coating and spray coating are more frequently being used. In contrast to the film
press and blade coating technologies, they do not touch or damage the coating or web, and cover paper substrates better.
Less complicated coating formulas can be used together with a higher pigment content, allowing the incorporation of less
expensive pulp fibers into the paper substrate. Finer precipitated calcium carbonate (PCC) pigments with a high surface
area also require adjustment of the binder chemistry.
The cost of the coating formulation is a major concern for paper manufacturers. Over the past three years, the
consumption of coating binders decreased by about 3–4% annually because of the ongoing replacement of synthetic
binders with starch derivatives, the application of lower coating weights, and the higher pigments content in the coating
formulations. The need to reduce costs and save energy explains the increased solids content in the coating mix. Cost
reduction and the need to enhance brightness are the drivers for the increased use of calcium carbonate pigments. Double
and triple coatings are applied, containing specialized clays and calcium carbonates, hollow sphere plastic pigments, and
thickeners. More on-machine coating is used, which delivers higher machine productivity than off-machine coating units.
In addition, the requirements from the paper industry to the latex suppliers will concentrate on the following:
• Assistance (product and service support) to optimize formulations in order to reduce costs.
• Differentiate paper types (e.g., more readable matte-finish paper types have been trendy in Western Europe).
• Improve runnability on papermaking machines and reduce downtimes and costs.
One key future requirement that leading latex suppliers are investing strong development effort in is repulpable barrier
latex coatings. Given the necessity of providing barrier properties, and the fact that some of the common state-of-the-art
technologies (e.g., paper/board laminates with polyethylene used in Tetrapack™ containers) are not recyclable, the
introduction of a potentially (re)dispersible coating polymer would be of great interest. Leading latex suppliers are making
strong efforts toward achieving this goal.
Overall, this segment is not considered attractive from the profitability point of view. Competition is tough in this
overcrowded market; large-scale producers such as DowDuPont and BASF have the cost advantage of possessing upstream
integration in raw materials and also operate with large-scale units, taking full advantage of economies of scale. Smaller
producers face an increasingly hostile business environment and have fewer chances to succeed in the longer term. In
addition, they can lack the paper industry–oriented strong R&D resources the large latex producers possess. Smaller
producers will therefore be able to maintain their position only if they have a clear niche orientation, be it geographical
(e.g., in a country like Finland) or with special product types that allow them to differentiate their products from the bulk
of the coated papers.
Consumption of the main products used for dry strength in Europe is shown in the following table.

European consumption of dry-strength additives—2017
Average annual
volume
Stock addition (wet end)
Starchesb 340 100 158 178 —
Carboxymethylcellulose 3.4 65 if you have
Contact Customer Care (customercare@ihs.com) 4 any questions.
5 —
Surface application
(size press)
Native and modified starches, dextrinsc 970 100 400 452 —
HEMC/HPMC 0.8 98 4 5 —
Carboxymethylcellulose 1.5 96 2 3 —
Total 1,315 568 642 1.5%
b. Carboxylated starches.
c. Including 500,000 metric tons of native starches, 100,000 metric tons of carboxylated starches, 30,000 metric tons of dextrins, 135,000 metric tons of acetylated starches, and 205,000 metric tons of cationic starches.
Demand for these products in Western Europe is expected to grow at an average annual rate of 1–2% during 2017–22.
There is an increasing use of recycled fiber (which is shorter than primary fiber and therefore confers less strength to the
paper), higher filler content, and the use of lighter-weight papers, which have been the driving forces behind the increased
consumption of dry-strength additives per ton of paper. While paper consumption decreases, consumption of board
grows; overall, a slight growth in dry-strength additives is expected. To avoid double-counting, polyvinyl acetate resins
(and other synthetic polymers) are not included in dry-strength additives, but considered only as pigment binder resins.
Market participants
The principal European suppliers of unmodified and modified starches, including their product trade names and the
products’ natural source, are listed in the table below.
Major European suppliers of starches—2018

Alkoxylated/ Carboxylated Cationic and Primary
Company Location phosphated and dextrins anionic Native natural source
Avebe B.A. Netherlands Perfectamyl, Amylofax, Cellocol Potato
Perfectacoat Aniofax
Cargill Belgium C-Film, C-Bond
C-Size
Chemigate Oy Belgium, Finland Raisamyl Wheat, barley, potato
Ingredion Germany Cato, EcoPro Maize
Roquette Frères SA France HI-CAT Vector N-735 Potato, maize, wheat
SOLAMa Germany, Sweden SOLCOAT Amylex SOLBOND, SOL- SOLPEARL Potato, maize, wheat
SIZE
Tate & Lyle United Kingdom, MERIFILM MERIBOND MERIZET Maize
Belgium
a. SOLAM is wholly owned by Lyckeby (SE) since it acquired Emsland Stärke’s share in 2017.
For wet-end applications, Roquette has the largest market share, followed by Avebe, Cargill, Solam, and Chemigate Oy.
The main suppliers of starches for surface applications, in order, are Cargill, Roquette, and Avebe. Major suppliers of other
dry-strength additives, the products offered, and their respective trade names are shown in the table below.

Major European suppliers of specialty and other dry-strength additives—2018
HEMC, Semisynthetic
Company Location CMC HPMC PVAc starch based
Ashland France Aqualon Natrosol
Celanese Netherlands, Vinamul
United Kingdom
Chemigate Oy Finland Raibond
Dow Wolff Cellulosics Germany Walocel C
Lamberti Spa Italy Customer
Contact Carbocel Daicol
Care (customercare@ihs.com) if you have any questions.
Mare Austria Austria X
Noviant Finland, Sweden Finnfix
Shin-Etsu Germany Tylose CR Tylose MH Mowilith
DC
Solvay France Rhodopas
Wacker Germany Vinnapas
Prices
Representative price ranges in Europe are shown in the following table.
European prices for dry-strength additives—2017

kilogram kilograma
Carboxylated starches
Dextrins 0.35-0.45 0.40-0.51
Maize 0.40-0.50 0.45-0.57
Potato 0.45-0.50 0.51-0.57
Carboxymethylcellulose 1.20-2.00 1.36-2.26
HEMC/HPMC 5.50-6.00 6.22-6.78
Native starches
Maize 0.25-0.35 0.28-0.40
Potato 0.25-0.35 0.28-0.40

In Europe, the trend to combine modified starches and polyacrylamides for dry strength is based on the high efficiency
gained as a result of the synergies created by such combinations. These combinations also improve retention and
dewatering, and have received excellent acceptance in Europe (see the section on Retention and drainage aids).
Closed-water systems in papermaking, popularization of neutral sized papers, and the high rate of paper recycling have
become standard in the industry and led to increases in dry-strength additive consumption. Wastepaper pulp (DIP or
deinked pulp) requires more strength additives and has become the major fiber source in Europe. Consequently, the
demand for dry-strength additives has increased in threcent years. Further growth in the future is likely.
Paper strength is increasing via pulping and by mechanical means on the papermaking machine. Creating a stronger,
intertwined paper fiber by machine pressure is one new development.
Starch manufacturers are working on starches that can be used to increase coating solids to over 70%. The benefits are
lower drying costs, higher proportions of starch in the binder system, and faster machine speeds. Size press starch
consumption far exceeds wet-end and coating consumption combined, which has led some papermakers to look at
modified, lower-cost starches for applications in which derivatized starches (such as hydroxyethyl, acetylated,
phosphorylated, cationic, thermally modified, and oxidized) have historically delivered their best value. In particular,
there is renewed interest for in-mill converted starches, such as ammonium persulfate or enzyme-converted native starch.

Starch has more or less reached its maximum utility with regards to adding strength to paper. Synthetic polymers have
the potential to further enhance paper strength.
Dyes, pigments, and fluorescent

Please use whitening
Adobe, agents
The principal colors for paper dyeing in Europe are found in the warm tones. A ranking of the main colors in decreasing
order of demand follows:
• Yellow: about 50–55% of the total.

• Red (Scarlet Red, Bluish Red): 15–20%.
• Blue: 20%.
• Turquoise: <5%.
• Orange: <5%.
Dyes are applied normally by addition to stock. Typical addition levels range from 0.1% up to 5% in the case of deep-
colored papers, with an average of about 0.5%.
Pigments are preferred in coating formulations, since compatibility problems may arise with soluble dyes. Direct dyes are
used for dyeing paper grades free of groundwood or with low groundwood content. Basic dyes are used for those grades of
paper and paperboard with high groundwood content. Acid dyes have been losing importance in recent years, since they
put too heavy a strain on the effluent treating system.
The amount of fluorescent whitening agents (FWAs) to be added is limited. Excessive addition causes greening—shifting
the chromaticity toward green, and greying—reducing the whiteness level. FWAs have their best efficiency (brightening
effect versus applied concentration) up to 0.4% stock addition. Tetrasulfo derivatives can be applied in concentrations of
up to 1.2–1.4%, and hexasulfo derivatives to 3% before the sheet turns grey. Almost all FWAs have an anionic character,
thus needing additives to be fixed on the fiber. The best efficiency is achieved by using polyvinyl alcohol, but CMC,
starches, casein, or other synthetic cobinders are also used for this purpose.

The specialty colorants market for paper in Western Europe is estimated to have been €169 million ($190 million) in 2017,
including FWAs. Consumption of dye segments are shown in the table below.
European consumption of dyes and pigments in papermaking—2017

Average annual
volume
Direct anionic 13.2 15-20 47.1 53.2 -2.0
Basic 4.6 40 18.7 21.1 -3.0
Pigment preparations 2.5 25 18.8 21.3 -2.0
Acid 1.0 45 4.8 5.5 -3.0
Direct cationic 0.9 15-20 4.2 4.8 -2.0
Total 22.2 93.7 105.8 -2.2%
Tissue papers are a major market for direct dyes in Europe. In 2017, 7.0 million metric tons were consumed, of which
about 45% was white (not colored); 50% was pastel-colored (i.e., slightly colored), and 5% was deeply colored.

The major types and market volumes of FWAs are presented in the table below.
European consumption of fluorescent whitening agents in papermaking—2017

Please use Adobe, Chrome, or Internet Explorer to read this file. Average annual
volume
Hexasulfo stilbene derivatives 10 20 - 25 if you have
Contact Customer Care (customercare@ihs.com) 12 13.2
any questions. -
Tetrasulfo stilbene derivatives 39 20 - 25 40 45.5 -
Disulfo stilbene derivatives 16 20 - 25 23 25.7 -
Total 65 75 84 -2.5%
a. As-is.
The demand for brilliant, high-white papers in both uncoated and coated papers in Western Europe, especially for color
output printing at home, in the office and for commercial applications using ink-jet printers, color laser printers, and
digital color presses, declined by about 1% annually over the past three years. Further decline of FWAs is expected.
Market participants
The major suppliers of dyes for paper in Europe (including the types supplied and their typical brand names) are listed
according to their estimated market share in the table below.
Major European suppliers of dyes and organic pigments for paper—2018

Direct Direct Pigment
Company Location Acid Basic anionic cationic preparation Other
Archroma Switzerland Cartazine Carta/Cartasol F Cartasol K Cartaren/Flexonyl/H Diresul P Catrasol
ostatint M
BASF Germany Anthosin Basazol/Basazol Fastusol Fastusol C Pigmosol/Basoflex
C
Switzerland Pergacid Pergabase Pergasol Pergasol F Irgalith Pergascript
Brenntag United Sulfacide/Acetacide Methic/Methyl Durazol Methic Monastral/Monolite
Kingdom
Kemira Germany Acilan Astra Levacell/ponta- Levacell KS Halopont/Levanyl/Po
mine nolith
The principal suppliers of FWAs in Western Europe and their typical brand names are listed in the table below. Blankophor,
BASF, and Archroma (formerly Clariant) are estimated to each hold 25–27% of the European market, followed by 3V with
about 12–13%. The balance is supplied by imports.
Major European suppliers of fluorescent whitening agents—2018

Plant
Company location Trade Names
Archroma Switzerland Leucophor U, UO, SHR, ANO, SAC, NS, FTF
BASF India Tinopal ABP, SPP, UP, Tinobloc
Blankophor Germany Blankophor ATS, DS, DL, P, NC, NCC, UWS
3V Italy Optiblanc NL, RL 200, XL 30
Source: IHS Markit.
In 2010, Kemira Oyj sold its global FWA business to Blankophor GmbH & Co. KG. The deal included a production plant in
Leverkusen, Germany, the global FWA sales network, and the associated support functions. With a view to future growth
markets for paper chemicals and dyestuffs in China, Indonesia, and India, BASF’s paper chemicals division reorganized its
global business structure in 2011. The business center and production operations for paper optical brighteners were

relocated from Grenzach, Germany to Ankleshwar, India. The traditional European, high-cost manufacturers of optical
brightening agents or FWAs continue to struggle as these commodities are easy to source from Indian and Chinese
producers at a similar quality but much lower price.
Prices
In Europe, there is a wide range of prices because of the varying concentrations and types of products. Suppliers sell both
directly to corporate paper companies and to individual mills. The products are not marketed through service companies,
but rather by the basic manufacturers. Technical service in the form of improving the cost-effectiveness of applications is
ContactofCustomer
critical, as is assurance Care (customercare@ihs.com)
supply and consistent high quality. if you have any questions.
Prices for paper dyes in 2017 were in the range of €3.50–5.00 per kilogram, those for pigment preparations were €7.00–
8.00 per kilogram, and FWAs sold in the range of €1.50–1.70 per kilogram, based on an average solids content of 18–22%.

A large part of the business for paper dyes and FWAs in Europe has turned into a commodity-type business with mostly
standardized and interchangeable products. Price determines the success of the sale and local suppliers face strong
competition from cheap imports from suppliers in China and India. In Europe, in contrast to other regions there is a
market for applicational FWA types—noncommodity types supplied to fit specific applications or so-called whiteness
concepts. The split between “commodity/interchangeable” and “applicational” FWA types in Europe is about 65% for
commodity types and 35% for whiteness concepts and specific types that are not interchangeable and not available from
importers.
The main trends in European use of paper colorants are listed below. They are ultimately directed to the goal of
manufacturing paper and board on rationalized lines and at competitive prices without adding to the level of
environmental pollution. No new products are anticipated, and any increase in alkaline processing will only minimally
affect demand.
• Computerized color control and color matching is expected to continue to gain importance. The paper industry is
utilizing both continuous and batch dyeing operations.
• Split addition of colorants (continuously into the stock and the balance applied in the size press) is expected to gain
importance.
• Suppliers will increasingly need to prove that their products are harmless to the environment.
Sizes
In Europe, alkaline papermaking was commercially introduced in the 1950s and has dominated the free sheet market
since the 1970s. Fiber resources in Europe are not as cheap and abundant as in other parts of the world, forcing mills to
produce papers with a higher filler content and with an increased amount of recycled fibers. Alkaline and neutral
papermaking technologies were utilized to maximize fiber consumption with imported kaolin and domestic calcium
carbonate. Alkyl ketene dimers (AKD) technologies dominate the European market for free sheet and board applications.
AKD’s advantages are versatility, flexibility, and ease of use. AKD is also able to handle higher ash content and runs cleaner
in most applications.
The sizing process using alkenyl succinic anhydride (ASA) as the active ingredient requires prior emulsification with
cationic starch or another polymer in order to achieve retention rates of over 80%, otherwise accumulation accompanied
by hydrolysis and deposition in the water circuit can occur. ASA was hardly used in Europe in the past because fewer
companies provided this chemical, it limits the choice of starch and cationic polymers, it is not well suited to ash levels of
20% and above, and it creates problems with the use of ground calcium carbonate (GCC), which has less surface area than
precipitated calcium carbonate (PCC). However, ASA provides faster cure than AKD. ASA is also suitable for high-volume

paper machines running a single product or a narrow product line such as plain papers for copiers and printers, and in the
production of gypsum or plasterboards where sizing is required.
Despite some of these properties, ASA is now an accepted product for sizing, spurred by the start-up of several large paper
and board machines inPlease useconversion
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costs for metering and emulsification equipment, ASA sizing costs are considerably lower than that of AKD. ASA will
become a commodity because it is a simple product and easy to make. However, at a price of €2.25–2.50 per kilogram, it
remains the most expensive specialty paper size on a kilogram basis. Further, ASA/starch emulsions are not stable, and
Contact
therefore paper mills willCustomer
produce ASACare (customercare@ihs.com)
captively on-site. if you have any questions.
Typical addition levels for synthetic sizes (stock addition) are about 0.5–1.0% for AKD (as a 15–20% emulsion) and about
0.1–0.2% for ASA (as 100% material) per metric ton of fiber furnish.
The European market for specialty paper sizes was valued at €250 million ($282 million) in 2017 and is projected to
remain unchanged over the next several years. Rosin-based sizing agent consumption will decline by 5% because of the
continued conversion of the board production process from acidic to alkaline sizing. ASA use will increase at the cost of
rosin dispersions and AKD.
European consumption of specialty paper sizes—2017

Average annual
volume
Volumea Average Market value growth rate,
Stock addition
Alkyl ketene dimer (AKD) 200 8-20 90.0 101.7 —
Rosin dispersion 70 30-35 40.0 45.2 —
Alkenyl succinic anhydride (ASA) 37 100 55.0 62.2 —
Surface applicationc 104 25 65.0 73.5 —
Total 411 250 282 0%
a. As-is basis.
c. Includes styrene-acrylate and styrene–maleic anhydride dispersions, polyurethanes, paraffin dispersions, and other surface sizes.
The need for papers with improved surface properties and the increased demand for ink-jet papers drive the growth of
surface sizing agents.
Growth in consumption of sizes in Europe in the recent past has primarily been for surface sizing, applied at the size press.
This is related to important mechanical improvements in size press technology, such as the size press SpeedSizer by Voith
or OptiSizer by Valmet which, compared with traditional size presses, have achieved better runnability control of the
sizing process and permit a more economical operation. Interesting innovations include BASF’s Basoplast and Kemira’s
Fennosize, which are polymeric sizes consisting of a hydrophobic nucleus in the sizing product coated with a hydrophilic
protective colloid. The sizing products are thus transported safely to the furnish and do not separate in the aqueous
dispersion. Advantages are good efficiency independent of the pH of the water circuit, and the composition of furnish and
fillers. Simultaneously, the amount of sizing can be precisely controlled.
Market participants
The following table shows suppliers of specialty paper sizes in Europe.

European suppliers of specialty paper sizes—2018
Internal sizes Surface sizes
Rosin Synthetic Acrylate Paraffin
Cationic
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Archroma Cartacol
BASF Raisize Raisize Raisize Raisafob Basocoll Basoplast
Raisafob
Bercen Bersize Bersize Bersize
Kemira Oyj Fennosize RS Fennosize Fennosize G, Fennosize
RS KD AS
Kurita Perglutin Perglutin X Perglutin
Solenis HighPhase Aquapel Prequel X X X Scripset
Chromaset
a. Cationic and anionic.
Prices
In Europe, average prices for rosin dispersions as-is (solids content 55–65%) are around €0.50–0.55 per kilogram, ASA (as a
100% material) is priced at €2.25–2.45 per kilogram, and AKD emulsions (sold as 10–15% stable wax and water emulsion)
are offered at €0.50–0.55 per kilogram. The range of surface sizes, priced at €0.75–0.90 per kilogram as-is, is very wide
because of the large variety of chemicals used (styrene-acrylate and styrene–maleic anhydride dispersions, polyurethanes,
paraffin dispersions).

• The use of synthetic surface sizing for newsprint, linerboard, packaging, and coated papers began to grow in the mid-
1990s. Four-color printing of newsprint, with increased recycled content in particular, was an area of AKD sizing growth
because color printing requires upwards of four times as much water as black and white printing. However, newsprint
production is falling swiftly even as color printing continues to displace black ink.
• Alkaline papermaking and use of synthetic internal sizing in the manufacture of papers containing groundwood (virgin
and recycled) is increasing. Several groundwood-containing fine paper mills have been converted so far and additional
conversions, especially in coated groundwood fine papers, can be expected in the near term. AKD and dispersed rosin are
believed to be the internal size of choice for groundwood papers, groundwood newsprint, and solid bleached kraft
paperboard applications.
• Rosin soap consumption for internal sizing has been discontinued. New technologies have provided rosin-based sizes for
near pH 7.0. Polyaluminum-hydroxy-chloride-dispersed rosin systems work at pH 6.7–7.4 and are compatible with
calcium carbonate fillers found in LPB and packaging board made of recycled cellulose fiber.
Wet-strength resins
Wet-strength additives represent a major type of specialty paper chemical in Europe. Polyamidoamine-epichlorohydrin
resins are the most widely used wet-strength resins. Examples of special papers requiring wet-strength additives are
grades for banknotes, laundry tags, tissue, paper towels, filter paper, photographic papers, kraft paper bags (such as
cement or rice bags), cardboard exposed to moisture, and special wrapping papers

The European market for wet-strength (polyamide-epichlorohydrin) resins in 2017 is estimated at 183,000 metric tons,
valued at about €125 million($141 million). Volume consumption is growing at 1–2% per year because of the gradual
upgrading in the facial tissue market and more widespread use of general-purpose kitchen tissue.

European consumption of wet-strength resins—2017
Average annual
volume
Polyamide epichlorohydrin resins 183 20 125 141 1.5
Glyoxal-PAM 31 10 25 28 1.5
Total 214
Contact Customer Care (customercare@ihs.com) 150
if you have 170
any questions. 1.5%
a. As-is.
The polyamide-epichlorohydrin resins gained market share over time as their performance adapted to the rising standards
concerning chlorinated by-products. While the first generation of resins had adsorbable organic halogens (AOX) in the
range of 10,000 parts per million, today’s third-generation resins have lower levels (between 10 and 50 parts per million)
of dichloropropanol (DCP) and chloropropanediol (CPD) by-products.
Urea-formaldehyde and melamine-formaldehyde resins, which have been used with paper made under acid conditions
(pH value of the finished sheet not exceeding 5.5), are no longer used as wet-strength resins in Europe because of
government regulations and environmental concerns. Polyamide-epichlorohydrin resins are used in neutral or alkaline
conditions and are especially used in combination with alkaline sizes or fillers. Wet-strength additives are added to stock,
surface-applied, or applied with a coating process (where they also function as an insolubilizer). A typical addition level is
1–6% of the weight of the fiber.
Market participants
Western European suppliers of polyamide-epichlorohydrin wet-strength resins include Solenis (formerly Ashland), BASF,
Archroma, Eka Chemicals, Kurita (formerly BK Giulini Chemie), Kemira, and the Italian Mare Group. The following lists
the Western European producers of wet-strength resins.
Major European suppliers of wet-strength resins—2018

Melamine- Polyamide- Urea-
Company Country Glyoxal-PAM formaldehyde epichlorohydrin formaldehyde Other
Archroma Switzerland Cartabond
Arkema France Cecamid
BASF Germany Curesan Glyoxal Urecoll Luresin Urecoll
40
Kemira Finland Fennostrength
Kurita Germany Giluton
Mare Italy Maresin
Melamin Slovenia Melapret Melapret Melapret
Solenis Germany Hercobond Kymene
WeylChem Lamotte SAS France Glyoxal 40
Prices
In Europe, polyamidoamine-epichlorohydrin resins are sold for €0.40–1.00 per kilogram as-is, depending on the active
ingredient concentration of 12–20% and the type of chemistry (generations 1, 2, or 3).

In Europe, health authorities and labor inspectors have increasingly given attention to the use of formaldehyde in wet-
strength products. Much effort is devoted to reducing the free formaldehyde content in the resins. Similarly, concerns
over the chlorine content of epichlorohydrin-containing resins have caused a shift to wet-strength additives that are AOX-
free, and to the use of glyoxal- and formaldehyde-free resins.

Paper that comes into contact with foodstuffs is subject to special regulations. In cases where wet-strength agents based
on epichlorohydrin resins are used, there have recently been growing concerns over the presence of epichlorohydrin
(ECH), DCP, and CPD, also known as 3-monochloropropanediol (3-MCPD) in the paper. A restriction on the use of ECH is
already contained in Recommendations XXXVI and XXXVI/1 of the German Institute for Risk Assessment (BfR): ECH
must be nondetectable Please
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carcinogenic and mutagenic, the limited values for these products in paper have been the subject of much discussion
recently. Paper products involved in hot water extracts such as tea bags and coffee filters are especially investigated, and
must use third-generation products. Sanitary hygiene products can use 2.5th-generation products to fulfill the
requirements.Contact Customer Care (customercare@ihs.com) if you have any questions.
Because these resins have come under scrutiny from health authorities, there are possible opportunities in finding new
wet-strength resins or, alternatively, in developing methods of reducing the free-formaldehyde content in the resins by
developing scavenger systems for formaldehyde and by developing epichlorohydrin-polyamide wet-strength resins with a
minimum content of potentially harmful chlorinated organic products such as DCP and 3-MCPD.
Specialty coatings
The following table shows consumption of specialty coatings in papermaking.
European consumption of specialty coatings in

papermaking—2017
Value
Millions of euros Millions of dollarsa
Silicones 150 169
Fluorochemicals 27 31
Insolubilizers 17 19
Total 194 219
Silicone products are used as specialty paper coatings. They usually act as release agents in release paper for pressure-
sensitive adhesive labels and tape. Applied concentration is about one gram (as 100% silicone) per square meter of paper
for a paper surface that has been pretreated with polyvinyl alcohol or carboxymethylcellulose (CMC), or calendered, or
clay- or polyethylene-coated to reduce porosity. Silicone release systems are supplied as aqueous emulsions, solvent-free
systems, solvent-containing systems, for addition or condensation curing systems, and for curing by heat or radiation. The
major market is release paper for labels. Silicone product prices are around €7.00–8.50 per kilogram. The total European
market value is estimated to be about €150 million ($170 million) and is expected to decline at about 1% per year during
2017–22. The market is becoming more sophisticated for specialty paper products (e.g., for novel label types).
In Europe, the paper industry has been using fluorochemical impregnations for more than 30 years. They used to be a
niche application, but as a result of environmental taxation encouraging recyclability of postconsumer wastepaper and
board, have become the standard barrier material used. The fluorochemicals are either applied by a size press or added to
the wet-end stock. By preferentially migrating to the surface, they provide the paper and paperboard with a built-in barrier
against most liquids, such as oil, water, or alcohol. They can also reduce the coefficient of friction and increase wear
resistance. Therefore, fluorochemicals are broadly used as functional protection in packaging for pet food, frozen and
chilled food, margarine, fast food, cookies and bakery products, snacks, and confectioneries. Fluorochemical
impregnation does not influence the recyclability of paper and board, and thus these substrates can be considered
monomaterials under environmental “green-dot” labels. European consumption of fluorochemicals was estimated at
€27.5 million ($31 million) in 2017. Prices for polymers in this application are around €10.00–12.50 per kilogram and
impregnated substrates are competitive with polyethylene-coated paper and board. The high price of the fluorinated
products drives research to develop cheaper, non-fluorinated solutions. Demand for these specialty products is expected
to remain stable during 2017–22.

Insolubilizers enhance cross-linking of carboxylated coating binders such as polyvinyl alcohol, CMC, SBR, and acrylic latex
used in the surface treatment of paper and board, help improve the printability of papers, reduce dusting and linting, and
decrease the sensitivity to water. In Europe, glyoxal resins and zirconium salts are used for this application. The goal of
substituting formaldehyde-containing products for environmental reasons in Scandinavia and Finland has created a
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estimated at about 5,000 metric tons, valued at €6 million ($5.6 million) while the market for zirconium salts is
estimated at about 6,000 metric tons, valued at about €11 million ($12.4 million).

Major participants
The following companies still supply fluorochemical impregnations to the paper and packaging industry in Europe:
Archroma (Cartafluor®), Arkema (Foraperle®), Solvay Solexis (Fluorolink—perfluoropolyether), and DowDuPont (Zonyl).
The European regional silicone release systems market leader is Wacker Silicones GmbH. Other important suppliers are
Dow, Elkem Silicones (formerly BlueStar Silicones), Evonik (TEGO® RC Silicones), and Momentive Performance Materials.
Evonik produces a niche specialty, UV light– and electron beam–curable paper coating. These processes have a cost
advantage compared with thermal curing since they are highly energy-efficient and are faster than conventional curing.
For example, the coating can be done under normal room temperature with no need for postcuring. Evonik/Th.
Goldschmidt has been on the market with these products since 1983.
BASF is a major supplier of glyoxal-based insolubilizers along with Archroma and Kemira.
Prices
European prices for fluorochemicals are in the range of €10.00–12.50 per kilogram. Silicone product prices are around
€7.00–8.50 per kilogram. Zirconium carbonates are sold for about €1.50–1.75 per kilogram, while glyoxal-based
insolubilizers are priced in the range of €1.20–1.50 per kilogram.
Japan
The following table shows Japanese consumption of specialty paper chemicals. In Japan, the market for specialty paper
chemicals totaled 664,000 metric tons in 2017, valued at ¥172 billion ($1.54 billion) in 2017 and is expected to decrease at
0.3% annually in the next five years.

Japanese consumption of specialty paper chemicals
Average annual
Volume volume
(thousands of 2017 growth rate,
metric tons) Billions of Millions of 2017–22
2014 2017 2022 yen dollarsa (percent)
Pulp and fiber treatment
Pulping specialties 2.9 2.8 2.6 1.3 12 -1.0
Deinking agents 6.9 7.0
Contact Customer Care (customercare@ihs.com)7.0
if you have1.9any questions.
17 0.1
Bleaching specialties 0.8 0.7 0.7 0.2 2 -1.0
Processing aids
Defoamers 12.6 12.8 12.2 3.4 30 -0.9
Pitch-control agents 3.1 3.1 3.1 2.2 20 -0.3
Slimicides/biocides 3.1 3.1 3.0 2.6 23 -0.5
Retention/drainage aids 3.7 3.7 3.6 2.6 23 -0.3
Dry-strength additives 149.6 165.8 166.3 45.5 407 0.1
Wet-strength resins 5.6 5.6 5.6 4.5 40 -0.3
Sizes 41.2 45.0 42.4 28.1 251 -1.2
Dyes and pigments 14.3 14.3 14.1 6.7 60 -0.3
Pigment binders/coatings 162.7 161.0 158.8 39.8 355 -0.3
Specialty coatings 211.9 238.6 235.4 33.1 295 -0.3
Total 618.4 663.5 654.8 172.0 1,536 -0.3%
a. Based on an exchange rate of ¥112 per dollar.

Deinking agents
In Japan, most mills use the flotation process for deinking. In this process, deinking agents make inks easily removable
from cellulose fibers by creating bubbles on a floater so that aggregate inks can be adsorbed to the bubbles, which rise to
the surface and are broken easily.
The types of wastepaper available for recycling have changed over the years along with the operating conditions of the
pulping equipment. These factors have influenced the use of deinking agents and deinking technology, particularly the
adoption of offset printing for newspaper printing. Fatty oil derivatives were the major deinking agents used in Japan
until offset printing technology was introduced to the newspaper industry. They were replaced with fatty alcohol
derivatives, which have higher affinity with offset inks.
The following chart shows the historical development of the use of deinking agents in Japan, following developments in
the type of wastepaper, operating conditions for equipment, and types of deinking chemicals and processes used.

Japanese trends in the development of deinking agents
Japanese Trends in the Development of Deinking Agents
Condition of 1970 1980 1990 2000 2010

Wastepaper
Letterpress/ Offset/Inkjet/
Type of Print Letterpress Offset Increasing
Offset Laser Printing
Ease of
Removing Ink Easy Hard Complicated
Inclusion Rate of
Little Large Increasing
Coated Paper
Operating
Condition
for Equipment
Mechanical Weak Strong Strong

Power of Pulper
Foaming Ability Little Large Larger

of Flotator
Major Type of General Anionic Fatty Oil Fatty Alcohol and/ Fatty Alcohol and/
Deinking Agent Fatty Acids
Surfactants Derivatives or Derivatives or Derivatives
General Nonionic Water-Soluble Water-Soluble

Surfactants Solvents Solvents

The following table shows Japanese consumption of deinking agents.
Japanese consumption of deinking agents

Average annual
Volume volume
metric tons) Millions of Millions of 2017–22
Fatty acids/fatty alcohol derivatives 5.5 5.6 5.6 1,671 14.9 0.1
Other surfactants 0.7 0.7 0.7 169 1.5 0.1
Fatty acids 0.7 0.7 0.7 91 0.8 0.1
Total 6.9 7.0 7.0 1,930 17.2 0.1%
The market for specialty deinking agents in Japan was 7,000 metric tons in 2017, a slight increase from 6,900 metric tons
in 2014. The market value was estimated at about ¥1.9 billion ($17 million) in 2017.
Deinking agents are quite important in Japan, where the share of wastepaper in the raw materials mix for paper and
paperboard production is very high. In 2016, wastepaper provided 78% of the raw materials for paper production and 97%
for paperboard.
The overall consumption of deinking agents is expected to increase at 0.1% annually on a volume basis from 2017 to 2022.
Market participants
In 2017, the leading suppliers of deinking agents in Japan were Kao Chemicals, Lion Specialty Chemicals, and Toho
Chemical Industry. Kao, the leading detergent and surfactant producer in Japan, is believed to have a 40% share of the
Japanese market. Kao is also Japan’s major producer of fatty acids and fatty alcohols.
The following table shows the major suppliers of deinking specialties and their estimated market share in 2017.

Major Japanese suppliers of specialty deinking products—2017
Sales
Valuea Market
Volume (millions of
share
(metric tons) dollars) (percent)
Kao 2,740 6.9 42
Lion Specialty Chemicals 1,490 3.9 23
Toho Chemical Industry 1,200 2.8 18
Nicca Chemical 650 1.3
Nissin Kagaku Kenkyusho 410 1.2 6
Other 95 0.3 1
Total 6,585 16.4 100%
Prices
In Japan, prices for deinking agents in 2017 were as follows: fatty acids/fatty alcohol derivatives, approximately ¥300
($2.68) per kilogram; surfactants, ¥250 ($2.23) per kilogram; and fatty acids, ¥125 ($1.12) per kilogram.

Requirements for paper quality are high even for so-called recycled paper in Japan. To satisfy customer needs, the
deinking system used in Japan is believed to be more complex than the ones used in the United States and Europe. From a
technical point of view, the increase in waste offset newsprint in the paper recycle system requires improvements in the
entire deinking system. In Japan, the types of deinking agents in use have changed over the years because of the increase
in offset newsprint. Fatty alcohol derivatives have been found to be the most suitable deinking agent for offset newsprint.
Although the major chemicals will not change, new types of deinking agents are still being developed. Improvement of
mechanical foaming systems has also been developed to decrease the use of chemicals in paper production processes to
save wastewater treatment costs in paper mills.
Pulping specialties
In Japan, anthraquinone (AQ) or tetrahydroanthraquinone (THAQ) salts (mainly the disodium salt of 1,4-dihydro-9,10-
dihydroxyanthracene, also called DDA) is used as a catalyst to improve pulp yield in alkaline pulping. At a use level of
0.05–0.1% based on wood furnish, these products improve pulp yields by 4–5% and also reduce active alkali and/or pulping
times and/or temperatures. Only DDA, which is sometimes referred to as soluble AQ or simply SAQ, is used in Japan.

The following table shows Japanese consumption of pulping specialties.
Japanese consumption of pulping specialties

Average annual
Volume volume
Tetrahydroanthraquinone salts 2.5 2.5 2.3 1,227 11.0 -1.0
Anthraquinone 0.3 0.3 0.3 114 1.0 -1.0
Total 2.9 2.8 2.6 1,341 12.0 -1.0%
In Japan, where wood pulp costs are very high, the use of AQ is common. The main additive used is the disodium salt of
dihydrodihydroxyanthracene (also known as DDA and THAQ), also known as SAQ. More than 80% of the kraft pulp mills
in Japan use DDA as a pulping catalyst; the remainder consume AQ.

In 2017, estimated consumption of DDA for pulping was about 2,500 metric tons on a 100% basis, unchanged from the
2014 level. The Japanese pulp industry consumed approximately 300 metric tons of AQ, valued at about ¥114 million ($1
million) in 2017. The overall domestic market value for pulping specialties was ¥1.3 billion ($12 million) in 2017.
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and AQ; Nihon Jyoryu Kogyo suppliesifAQ.
Prices
In Japan, the price of AQ was approximately ¥350 ($3.13) per kilogram in 2017. The price of DDA (100% basis) was
approximately ¥500 ($4.46) per kilogram in 2017. DDA is sold as an aqueous solution, usually at a concentration of 22%.

Because Japanese paper producers must import large amounts of wood chips and also use many kinds of chips (not only
softwoods but also hardwoods), DDA plays an important role as a pulping specialty in lowering the cost of raw materials in
Japan. Use of DDA in the pulping process gives a higher yield of pulp per unit chip within a shorter operation time. Chip
prices in Japan are higher than those in other countries, allowing Japanese companies to use the otherwise relatively
expensive DDA. Furthermore, fuel and electricity are expensive in Japan; DDA can reduce total energy costs for the paper
manufacturer.
In Japan, there is essentially no use of specialty bleaching chemicals except chelating agents. There is no on-site mill
production of sodium hydrosulfite from sodium borohydride because of the high cost of the product. While sodium
borohydride is popular in the United States and Western Europe, the Japanese market consumes no borohydride.
Chelating agents are used in the bleaching process to increase the whiteness of pulp and the stability of hydrogen
peroxide. In Japan, ethylenediaminetetraacetic acid and salts (EDTA) (generally sodium salts),
diethylenetriaminepentaacetic acid and salts (DTPA), and nitrilotriacetic acid (NTA) are generally used for these purposes.

The following table shows Japanese consumption of bleaching specialties.
Japanese consumption of bleaching specialties

Average annual
Volume volume
DTPA 0.5 0.5 0.5 147 1.3 -1.0
EDTA 0.2 0.2 0.2 74 0.7 -1.0
NTA 0.1 0.1 0.1 29 0.3 -1.0
Total 0.8 0.7 0.7 249 2.2 -1.0%
In Japan, approximately 500 metric tons of DTPA, 200 metric tons of EDTA, and 100 metric tons of NTA were consumed in
2017. The market values of these products were ¥147 million ($1.3 million), ¥74 million ($0.7 million), and ¥29 million
($0.3 million), respectively. The total market is expected to decrease at 1.0% annually through 2022.

Market participants
The primary Japanese producers of aminopolycarboxylic acids and salts (chelating agents) are Mitsubishi Chemical and
Showa Denko. These chemicals are also produced by Chelest and Nagase ChemteX. Chelest is a leading supplier of EDTA
and NTA, and Nagase ChemteX is a leading
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and AkzoNobel are major suppliers, whereas Mitsubishi Chemical and Showa Denko do not supply any chelating agents to
the paper and pulp industry.
Prices
Japanese prices for chelating agents in 2017 are shown in the following table. Actual prices are closer to the low end of the
price range.
Japanese prices for chelating agents—2017

Yen per Dollars per
kilogram kilograma
DTPA
Pentasodium saltb 200-400 1.79-3.57
EDTA
Disodium salt 500-900 4.46-8.04
Tetrasodium salt 370-500 3.30-4.46
NTA 350-500 3.13-4.46
b. For 40% aqueous solution as-is basis.

Japanese pulping companies are trying to decrease consumption of chlorine and chlorinated chemicals, and to increase
the use of oxygen. Ozone bleaching and hydrogen peroxide together with chlorine dioxide treatment is now common for
bleaching in Japan. Bleaching by hydrogen peroxide continues to increase. Initially, this system was used only for
mechanical pulp and deinking pulp, but consumption for chemical pulp and other processes have increased.
With regards to biobleaching, Oji Paper introduced a xylanase bleaching system in its Yonago Mill, Tottori Prefecture, in
May 2004. The mill produces xylanase by cultivating a wild strain that generates xylanase in high yield and consumes it
captively.
The increasing use of wastepaper as furnish requires less chelating agents, since metal impurities have already been
removed in the virgin pulp manufacturing process. There will be minimal growth in the demand for chelating agents going
forward.
Processing aids
Defoamers
The pulp and paper industry consumes defoamers primarily for pulping processes at temperatures of 80–90°C and for
papermaking processes at 30–40°C. Defoamers are also used in the coating process and for wastewater effluents. The type
of chemical defoamer used varies depending on the paper-making process. Three types of formulations are common in
Japan.
• Oil-based defoamers, including silica and/or amides are the oldest type; its use has been decreasing because of fire laws.
• Water-extended defoamers are the most popular and include 10–20% water. This type has been preferred because it is
excluded from materials classified as “dangerous substances” by fire laws.
• Water-based emulsion defoamers include modified silicone oil; the use of this type is growing.

Fatty acid amides are the most popular chemicals used; however, the use of formulations that include amides has been
decreasing because amides tend to cause pitch. Three formulation examples are given in the following table.
Japanese defoamer formulations—2017

(percent)
Modified silicone oil emulsion types (water-based emulsion)
Water 80-50
Modified silicone oil 20-50
Total Contact Customer Care (customercare@ihs.com)100%
Silica/amide combination types
(oil-based emulsion)
Mineral oil (pure paraffin) 88
Methylenebisstearylamide 10
Hydrophobic silica 1
Silicone oil 1
Total 100%
Water-extended emulsion types (oil-based emulsion)
Mineral oil 65-85
Water 15-20
Modified silicone oil 0-3
Amides 0.5-10
Hydrophobic silica 0.5-10
Methacrylate copolymer 0.5-5
Silicone oil 0-0.5
Other 0.5-5.5
Total 100%
In papermaking processes, two main types of defoamers are used: emulsion and polyether glycol. In Japan, water-based
emulsions (e.g., fatty alcohol) are popular. Fatty alcohols, fatty acids, fatty acid esters, silicone oils, and alkylene oxide
adducts (polyether polyols) are considered specialty chemicals. Silicone oil emulsions used to be the major defoamer, but
they have lost market share, particularly in papermaking processes. In contrast, in pulping processes, silicone oil
emulsion’s share has likely increased despite its high price. Currently, consumption of fatty alcohol emulsion–type
defoamers has increased in papermaking processes because they do not interfere with sizing agents. Polyether polyols
have also been popular because of their functionality.
Two types of defoamers are used in coating color processes. One is added at the pigment-dispersing step, the other is added
after it. For the former, solvents with silicones were important, but these are seldom used in Japan. For the latter process,
wax emulsions or polyether polyols are usually used in Japan.
For wastewater, mineral oil types of emulsion defoamers are used. One emulsion type is a wax emulsion, and the other is a
silicone oil emulsion. Formulations that are used in the pulping process are also used in wastewater treatment.

The following table shows Japanese consumption of defoamers in papermaking.

Japanese consumption of defoamers in papermaking
Average annual
Volume volume
Silicones 1.7 1.7 1.6 1,267 11.3 -1.0
Polyether polyols 3.5 3.6 3.4 1,250 11.2 -0.9
Fatty alcohol emulsions 4.5 4.5 4.3
Contact Customer Care (customercare@ihs.com) if 407
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questions. -0.9
Fatty acid amides 2.2 2.2 2.2 381 3.4 -0.8
Other (kerosene/oils) 0.7 0.7 0.7 104 0.9 -0.6
Total 12.6 12.8 12.2 3,409 30.4 -0.9%
In Japan, the estimated market value for these products in 2017 was approximately ¥3.4 billion ($30 million), and the
volume was approximately 12,800 metric tons on a 100% basis except for silicone emulsion, which was on a 25% basis. The
consumption of defoamers in Japan is expected to decrease at about 0.9% annually through 2022.
The following table shows Japanese consumption of defoamers in papermaking by application.
Japanese consumption of defoamers in papermaking by process

(25% basis for silicone emulsions; 100% basis for the others)
Average annual
Volume volume
Papermaking process 6.3 6.4 6.1 1,526 13.6 -0.9
Pulping process 3.2 3.2 3.0 915 8.2 -0.9
Wastewater 1.9 1.9 1.8 604 5.4 -0.9
Coating process 1.3 1.3 1.2 365 3.3 -0.9
Total 12.6 12.8 12.2 3,409 30.4 -0.9%
In 2017, consumption of defoamers for papermaking accounted for 50% of the overall defoamer consumption on a volume
basis, followed by pulping process (25%), wastewater (15%), and coating process (10%). On a value basis, papermaking
accounted for 45% of the total defoamer consumption, followed by pulping process (27%), wastewater (18%), and coating
process (10%).
In terms of the chemicals used, the following table shows the estimated market share of various defoamers in Japan.

Japanese consumption of defoamers in the pulp and paper industry by
chemical type—2017a
(percent, volume basis)
Coating process
Polyether polyols <100
Silicones neg
Total coating process 100%
Papermaking process
Fatty alcohol emulsions
Polyether polyols 30
Silicone emulsions neg
Other emulsionsb 5
Total papermaking process 100%
Pulping process
Amides/silica 50
Silicones and other 50
Total pulping process 100%
Wastewater
Amides/silica 34
Fatty alcohol emulsions 20
Polyether polyols 20
Silicones 5
Other 21
Total wastewater 100%
a. More than 80% of demand has been for water-extended products in recent years.
b. Includes fatty acid esters and other.
Market participants
There are multiple suppliers of defoamers to the paper and pulp industry. Major suppliers of defoamers include Toho
Chemical Industry, Kurita Water, San Nopco, Hakuto, Kao Chemicals, and Lion Specialty Chemical. Toho is believed to be
the leading supplier of defoamers.
Prices
Typical Japanese prices for defoamer formulations used by the papermaking industry are shown below.
Typical Japanese prices for defoamers for pulp and paper—2017

Yen per Dollars per
Percent kilogram kilograma
chemicals Actual 100% basis Actual 100% basis
Amide/silica type (pulp) 100b 170-300 170-300 2.13-3.76 2.13-3.76
Fatty alcohol emulsions various 90-550 600-750 1.13-6.89 7.52-9.40
Polyether polyols 100 350-700 350-700 4.39-8.77 4.39-8.77
Silicone emulsionsc (pulp) 25 750-1,000 3,000-4,000 9.40-12.53 37.59-50.13
Other various 100-450 400-1,200 1.25-5.64 5.01-15.04
b. Mineral oil functions not only as a solvent but also as an active component. At the 100% level shown, it is considered an active component of the formulation.
c. For pulping process uses.

Foaming has become a major concern in the pulp and paper industry because of the following factors: increased use of
closed-water recycling systems, which concentrate foaming materials; use of paper recycling; growing consumption of
lower-quality wood chips; and increased demand for higher-quality papers. The requirement for higher-quality paper
means many more types of chemicals are used that can cause foaming during the papermaking process. In addition, the

adoption of oxygen bleaching in Japanese kraft pulp mills cause the formation of bubbles that tend to remain in
subsequent process steps.
Paper producers used to consider only visible foam as undesirable but now recognize that more important problems are
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Defoamer formulations that are easy to use and safe are preferred, including formulations that have low ignition points,
since they are safer and comply
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extended defoamers at the expense of paraffin-based types.
In papermaking processes particularly, fatty alcohols and their derivatives are expected to be used, mainly because of their
excellent compatibility with newer papermaking technologies.
In contrast, polyether polyols are expected to lose their share in papermaking processes, although they will remain as the
major defoamer by far in coating processes.

In Japan, polyacrylamide is the most popular retention/drainage aid. Usually, polyacrylamides for retention aids have
higher molecular weight and are used in a solution of about 3–6%, while those for dry-strength additives have lower
molecular weight and are used in a solution of about 10–15%. Both cationic and anionic polyacrylamides are used; use of
nonionics is minor, while polyethyleneimine (PEI) is used generally as a drainage aid for paperboard production. For
neutral papermaking, cationic starches and/or polyacrylamide are usually used.
It can be difficult to distinguish retention aids and dry-strength additives because some products perform both functions.
As in the United States, cationic starch in particular is multifunctional and is used for both dry strength and retention
purposes. It is covered as a dry-strength agent in this report in order to avoid double-counting. Although polyamideamine
is also used as a retention and drainage aid in Japan, the amount consumed is small and limited.
In Japan, paper manufacturing companies have been increasing wastepaper usage, even for high-quality printing/writing
paper, as a result of taking environmental and resource preservation issues into consideration. In addition, the operation
of paper machines and coaters at higher speeds in order to reduce production costs increases the demand on paper
chemicals’ efficiency.

The following table shows the Japanese consumption of selected retention and drainage aids in papermaking.
Japanese consumption of selected retention and drainage aids in papermaking

(dry weight basis)
Average annual
Volume volume
Polyacrylamide 2.6 2.6 2.6 1,692 15.1 -0.3
Polyethyleneimine 0.5 0.5 0.5 520 4.6 -0.3
Microparticles 0.6 0.6 0.6 406 3.6 -0.3
Total 3.7 3.7 3.6 2,618 23.4 -0.3%
Consumption of synthetic polymers for retention and drainage amounted to 3,700 metric tons, valued at ¥2.6 billion ($23
million) in 2017. Volume consumption has remained relatively flat since 2014 and is expected to decrease at 0.3% annually
through 2022.

Market participants
The following table shows major suppliers of specialty retention and drainage aids for papermaking in Japan.
Major Japanese suppliers of specialty retention and drainage aids for

papermaking—2018
Microparticle Synthetic
retention system polymers Other
Arakawa Chemical Polytention
BASF Hydrocol
Contact Polymin , Percol
Customer Care (customercare@ihs.com)
® ® if you have any questions.
®
Harima Chemicals Hariup

Hymo Hymoloc Customized products
are also available
Kurita Water Highholder
Seiko PMC RD series
Somar Realizer®
Hymo is the leading supplier of polyacrylamide for retention aids in Japan, followed by Kurita Water, Somar, Arakawa
Chemical, and Harima Chemicals. BASF is the major supplier of PEI. Nippon Shokubai produces PEI in Japan, but it does
not sell the product to the paper industry because of low profitability.
Prices
In Japan, the price of polyacrylamide in 2017 was about ¥600–700 ($5.36-6.25) per kilogram; for PEI, the price was about
¥900–1,300 ($8.04-11.61). Both are on a 100% solids basis.

The adoption of high-speed papermaking machines such as the twin wire machine, has led to the increasing consumption
of retention aids. High retention levels of chemicals can save paper production costs and can reduce wastewater pollution.
In the closed-water system that has been adopted in Japanese paper mills, a higher level of retention, referred to as “high-
level one-pass retention” is required. In addition, increasing demand for thinner printing paper with high opacity requires
innovative retention and drainage aids. Products to meet these requirements are gaining market share.
In addition, alkaline papermaking has contributed to increased consumption of retention aids. In alkaline papermaking,
the use of a quaternary cationic ester that can dissociate under neutral or alkaline pH is increasing, and this trend will
continue into the future.
Filler loading levels in Japan range between 8% and 12%. The level in plain copier (PPC) paper is approximately 8%. Filler
levels in Japan are not expected to increase to European levels. However, consumption of calcium carbonate for coating
pigments has grown to meet the increasing preference for highly opaque paper.
Biocides
In Japan, various kinds of biocides and slime-control agents are used in the pulping, papermaking, and paper coating
processes. Because of the use of closed-water systems and alkaline papermaking, both the number and kinds of bacteria
have proliferated, especially in the papermaking process. To meet changing circumstances, formulations of slimicides are
constantly evolving. Bromine use increased rapidly in Japan because of advanced monitoring systems for water quality and
advanced on-site bromine-supply systems to produce hypobromide in the papermaking process. The system provides
longer persistence of hypobromide. In contrast, the use of organic slimicides has substantially decreased in recent years
although significant volumes are still consumed in paper mills. Generally, slimicides and preservatives are formulated
together to take advantage of the individual properties. Slimicides are relatively strong but fast-acting, while
preservatives are relatively weak but have longer-acting efficacy.

3,4-Dichloro-1,2-dithio-5-one (dithiol), bis(bromoacetoxy)-2-butene (BBAB) and methylenebisthio cyanate are the
preferred biocides used in paper, while 5-chloro-2-methyl-4-isothiazoline-3-one magnesium chloride, triazine, 2-bromo-
2-nitropropane-1,3-diol (bronopol), and methylenebisthiocyanate are the preferred preservatives.
The following table presents Japanese consumption of slimicides/biocides in papermaking.
Japanese consumption of specialty slimicides/biocides in papermaking

Average annual
Volume Value volume
Bromine-containing compounds 1.5 1.5 1.5 1,307 11.7 -0.5
Organosulfur compounds 1.5 1.5 1.5 1,276 11.4 -0.5
Total 3.1 3.1 3.0 2,583 23.1 -0.5%
In Japan, the total slimicide/biocide market volume was approximately 3,100 metric tons on a formulation basis with a
value of ¥2.6 billion ($23 million) in 2017.
Besides slimicides, the pulp/paper industry consumes significant amounts of biocides for storage of various kinds of paper
chemicals, such as sizes and defoamers. The major types of biocides used in these applications include 2-methyl-4-
isothiazolin-3-one, triazine, 2-bromo-2-nitropropane-1,3-diol, and 1,2- benzisothiazolin-3-one. These products are
discussed in depth in the SCUP Biocides report.
Market participants
Kurita Water Industries is the largest supplier of slimicides in Japan, followed by Katayama Nalco. Other market
participants include Hakuto, Somar, and Permachem Asia. Most of them manufacture their own formulations from
purchased active ingredients produced by other chemical producers (mainly imported ingredients from China).
Prices
In Japan, the prices for organic slimicides in 2014 varied between ¥500 and ¥1,300 ($4.46 and $11.61) per kilogram on an
as-is basis; the average market price is estimated to have been approximately ¥840 ($7.50).

Alkaline papermaking, use of deinked pulp, and adoption of closed-water systems have led to pronounced growth in the
types and number of bacteria in papermaking mills. To achieve bacterial control at a lower cost, paper mills have and will
favor the use of inorganic commodities over the next five years. As for the organic slimicides, mills will use different
slimicides on a rotational basis. Bacteria develop resistance to slimicides so a mill cannot use the same slimicide
indefinitely.

As in NAFTA and Europe, Japanese paper mill deposits can generally be classified as organic, inorganic, or microbiological.
Pitch-control agents are categorized into three types based on their primary functions—organic surfactants (e.g.,
nonionic, cationic) for dispersion; fatty amides, ethylene oxide adducts, and inorganic agents (e.g., talc) for tackiness
elimination; and high-boiling-point naphtha and certain surfactants for dissolution.

Talc is the most popular inorganic pitch-control agent; aluminum sulfate is seldom used today. However, these inorganics
are not discussed in detail in this report since they are considered commodity chemicals. Surfactants, some types of
polymers, and certain solvents are considered specialty pitch-control agents.
Japanese classificationPlease use Adobe,

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Japanese classification of pitch-control agents

Category Type Chemicals used Function
Adsorption Inorganic chemicals
Contact Talc, aluminum sulfate
Customer Care (customercare@ihs.com)
a
Decrease
if you have anytackiness of pitch
questions.
Organic chemicals Cationic polymer Retention of pitch
Dispersion Surfactants Nonionic, anionic, cationic type Give hydrophilicity to pitch
Ion dispersion–type (calcium) agents Polyacrylic salts, chelating Dispersion
Colloidal dispersion Polyvinyl alcohol Protective colloid function
Dissolution Surfactants Nonionic, anionic type Dissolution of pitch
Organic solvents Paraffin oil (kerosene), light oil Emulsification of pitch
Dissolution of pitch
Other Enzymes Lipase Decomposition of pitch
Oxidation Hydrogen peroxide Decomposition of pitch
a. Inorganic chemicals such as talc and aluminum sulfate are not considered specialty chemicals.
Source: “Kami to Kako no Yakuhin Jiten,” Techtimes, February 1991, p. 215. © 2018 IHS Markit

Japanese consumption of specialty pitch-control agents is shown in the following table.
Japanese consumption of specialty pitch-control agents

Average annual
Volume Value volume
Surfactants (dispersion) 2.6 2.6 2.6 2,082 18.6 -0.3
Organic solvents (adsorption/coagulation) 0.5 0.5 0.5 146 1.3 -0.3
Total 3.1 3.1 3.1 2,228 19.9 -0.3%
In Japan, total consumption of specialty pitch-control agents in 2017 was estimated at approximately 3,100 metric tons,
valued at ¥2.2 billion ($20 million). Total consumption of specialty pitch-control agents is expected to decrease at 0.3%
annually through 2022. It will become difficult to quantify the breakdown of pitch-control agents, retention aids, and
drainage aids in the future, since multifunctional chemicals are becoming more popular in Japan.
Market participants
There are more than 10 pitch-control agent suppliers in Japan, although some of them supply only talc. Hakuto, Kurita
Water, Katayama Nalco (a joint venture between Nalco and Katayama Chemical Industries), Lion Specialty Corporation,
and Toho Chemical Industry are the major suppliers of specialty pitch-control agents. The first three companies supply
mainly cationic polymers (polyethyleneamide amines as adsorbants), while the latter two supply mainly dispersants
(typically nonionic surfactants).
Prices
In 2017, the price of surfactant-type pitch-control agents was approximately ¥280–330 ($2.50–2.95) per kilogram and the
cationic oligomer type was about ¥750–850 ($6.70–7.59) per kilogram on an as-is basis.

In Japan, anionic, cationic, and copolymer types of polyacrylamides (PAM) and derivatized starches are the predominant
Pleaseadditives.
products used as dry-strength use Adobe, Chrome,
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and natural gums this file.used but in smaller
are also
volumes.
PAMs used as dry-strength additives have a molecular weight in the range of 200,000–1,000,000. They are usually sold
and used as a 10–20% solution. The use of anionic PAM has decreased because it requires aluminum sulfate and is not
suitable for alkaline papermaking. Copolymer and amphoteric PAMs are now used because they work in a wide pH range.
They also have higher molecular weights and bind pulp fibers physically rather than by ionic bonding. These synthesized
polymers are used mainly in the production of base paper for coated papers. Branched PAMs are used in a wide variety of
applications such as paperboard, newsprint, wood-free printing paper, and coated paper. So-called two-component
systems have become popular to meet the increasing use of low-quality pulps.
Starches are sold as powder, and then made into a paste solution on-site. Cationic starches, which have significant
cost/performance benefits and also perform as retention/ drainage aids, are generally preferred for paper, but not for
paperboard. In general, manufacturers of wood-free printing paper prefer to use cationic starches at 0.5–1.0% of paper
weight, or in a combination of 0.5% cationic starches and 0.2–0.3% polyacrylamides.

The following table presents the Japanese market for dry-strength additives.
Japanese consumption of dry-strength additives

Average annual
Volume Value volume
Polyacrylamides 41.3 42.4 44.4 30,970 276.5 0.9
Starches (unmodified) 73.8 84.7 83.5 8,894 79.4 -0.3
Derivatized specialty starches 30.6 34.6 34.2 3,636 32.5 -0.3
Other 4.0 4.1 4.3 2,045 18.3 0.9
Total 149.6 165.8 166.3 45,545 406.6 0.1%
In 2017, Japan consumed almost 166,000 metric tons of dry-strength additives valued at ¥45.5 billion ($407 million).
Consumption of dry-strength additives is expected to grow at 0.1% annually through 2022.
Market participants
The major Japanese suppliers of PAMs for dry-strength additives include Arakawa Chemical Industries, Seiko PMC, and
Harima Chemicals. Nihon Shokuhin Kako and Oji Cornstarch are the leading suppliers of cationic starch.

In Japan, current papermaking circumstances require PAM copolymers because of their higher binding performance
compared with conventional types and more effective synthetic polymers. Japanese consumption of PAM copolymers
which have a rather high molecular weight and are highly branched, is expected to increase further.
Surface treatment, including clear coating (discussed in the Specialty coatings section) and surface sizing (discussed in
the Sizes section), is a method of increasing dry paper strength. Functionally, these chemicals can also be classified as dry-
strength additives. These surface treatments, which are usually done in the dry end of the papermaking process by size
presses, are used in paper mills because surface treatment makes it easier to control the performance of paper and to
decrease paper chemical waste.

Pigment binders
In Japan, the general functional requirements for a binder system are the same as those in the United States.
Requirements for specialty binders (as well as for specialty additives like synthetic silicas) have increased, primarily
because of the growing use of the
Please useink-jet
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particular. Since ink-jet inks for office/home use are water-based, they require a new combination of binder and
fillers/pigments.
Styrene-butadiene (SB) latex, specialty starches, and polyvinyl alcohol are used in Japan as binders for paper coatings. Of
these, SB latexContact Customer
is the primary Care (customercare@ihs.com)
binder. Specialty starches and polyvinyl alcoholifare
you have
used any questions.
in combination with SB latex.
SB latex is sometimes modified with other polymers and/or copolymerized with other monomers including
methylmethacrylate, acrylonitrile, and monomers that have carboxylic, amide and/or amino groups. Multicomponent
copolymers that contain methylmethacrylate and/or acrylonitrile are popular in Japan because they provide improved
print quality, and higher gloss and paper strength.
Polyvinyl alcohol is used for pigment binder because of its good compatibility with ink-jet printing. However,
consumption remains limited. Japan also consumes polyvinyl alcohol as a specialty clear coating. See the Specialty
coatings section of this report for quantification of that large-volume application of polyvinyl alcohol.

The following table shows Japanese consumption of the different pigment binders/coatings.
Japanese consumption of pigment binders/coatingsa

Average annual
Volume Value volume
Styrene-butadiene latex 119.3 115.7 114.1 34,710 309.9 -0.3
Specialty starch 42.4 44.3 43.7 4,648 41.5 -0.3
Polyvinyl alcohol 1.0 1.0 1.0 430 3.8 -0.3
Total 162.7 161.0 158.8 39,788 355.3 -0.3%
a. 100% active basis.
b. Based on an exchange rate of ¥112 per dollar.
In 2017, Japan consumed almost 116,000 metric tons of SB latex with a value of ¥34.7 billion ($310 million). Future
consumption will continue to decrease at a rate of 0.3% annually through 2022.
Consumption of specialty starch was 44,000 metric tons, valued at ¥4.6 billion ($42 million) in 2017. The consumption of
specialty starch as pigment binders is expected to decrease at 0.3% annually through 2022.
Japanese consumption of polyvinyl alcohol classified as a pigment binder is very limited. Most polyvinyl alcohol is
consumed for surface coatings, including some binder applications for thermo-sensitive and pressure-sensitive paper.
Polyvinyl alcohol and oxidized starch consumption for specialty clear coatings in Japan are discussed in the Specialty
coatings and miscellaneous products section.
Market participants
Suppliers of specialty pigment binders in Japan include JSR, Nippon A&L, Asahi Kasei Chemicals, and Zeon. JSR supplies
customized grades to each paper mill and has a strong supplier position with Oji Paper and Nippon Paper. Nippon A&L has
a strong position with Oji Paper, Hokuetsu Kishu Paper, and Daio Paper, while Asahi Chemical is the leading supplier to
Hokuetsu Kishu Paper. Zeon mainly supplies its product to Nippon Paper. Kuraray is the leading supplier of polyvinyl
alcohol, followed by Nippon Synthetic Chemical and Nippon VAM & POVAL. Nihon Shokuhin Kako and Oji Cornstarch are
the leading suppliers of specialty starches, followed by Nippon Corn Starch and other.

Prices
In 2017, SB latex for paper use was priced at around ¥300 ($2.68) per kilogram, while the price of starch was ¥105 ($0.94)
per kilogram and prices for polyvinyl alcohol were around ¥430 ($3.84).
Three functions are most important for binders.
• Strong filming capability with fairly good adhesion to paper, which increases the strength of the coating. Therefore,
high-molecular-weight low-cross-linkage latex was developed.
• Compatibility with high coating speeds. In Japan, the speed of coating machines now exceeds 2,000 meters per minute.
Speeds will continue to trend up until they reach 3,000 meters per minute.
• Controlled ink receptivity particularly for photo-grade ink-jet printing papers. Demand for higher-speed printing has
led to new binders and pigments/extenders.
There is a strong demand for lightweight coated and glossier papers in Japan. However, high-speed coating causes a
decrease in gloss; consumers are calling for the development of binders that meet the needs of both faster coating speeds
and glossier paper. Demand for fused silica as a filler has been growing.
Microspherical binders have been developed by Nippon A&L to provide better properties in the production of lightweight
coated paper. Spherical binders made from SB latex are bifunctional (i.e., they have both pigment and binder functions).
Sizes
In Japan, the types of specialty sizes are not much different from those used in the United States and Europe, but some of
the major paper sizes have been changing. Over the past decade, large amounts of rosin soap have been replaced with rosin
emulsions, which have become the most popular size. Rosin emulsions are the major paper size used in Japan, accounting
for approximately 76% of the total size market on a volume basis in 2017.
Rosin emulsion sizes are classified into two types. One is the size that is used under acidic conditions that replaced rosin
soap size because of its easy handling. Most newsprint papermakers use rosin emulsion size in acidic conditions, though
this has been changing rapidly in recent years. Another is a size that is used under neutral pH conditions together with
calcium carbonate for the production of plain papers for computer printouts. Acidic rosins (including weak acidic) are used
mainly in paperboard production. Neutral rosins are used in the production of almost all fine and coating base papers,
including paper for copiers, laser printers, and ink-jet printers.
Demand for alkaline-reactive sizes, including alkyl ketene dimer (AKD), alkenyl succinic anhydride (ASA), and cationic
polymers, has been increasing. AKD is preferred for the production of coating papers. ASA consumption was limited
because of its disadvantage of making dirty spots on the paper web; however, ASA’s very rapid sizing reaction, coupled
with improvements in application technology, accelerated its penetration into the market. Cationic polymer sizes, such as
dimethylaminomethacrylate and styrene derivatives, are used to support the function of AKD.
The use of surface sizing has increased with the production of ink-jet paper. In addition, the lower cost of sizing compared
with internal sizing attracted newsprint paper manufacturers to surface sizing (particularly the use of emulsion types).
The surface sizes used in Japan include petroleum resins, rosin esters, styrene–maleic anhydride copolymers, styrene-
acrylic copolymers, styrene-acrylic emulsions, acrylic copolymers, acrylic emulsions, olefin–maleic anhydride copolymer
resins, AKD, and others. Among these, styrene derivatives are the major product. Sizes using starch and polyvinyl alcohol
that improve surface properties are excluded from the size category in Japan, and are usually called clear coatings.
Sometimes they are classified as surface paper-strength agents. (See the Specialty coatings section for the use of starch
and polyvinyl alcohol as clear-coating surface- strength agents.)

The estimated Japanese market for the various paper sizes is shown in the following table.

Japanese consumption of specialty paper sizesa
(100% active basis)
Average annual
Volume Value volume
Please use Adobe,Active
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ingredients metric tons) Millions of Millions of 2017–22
(percent) 2014 2017 2022 yen dollarsb (percent)
Natural rosin sizes 50 9.8 16.8 15.8 9,715 86.7 -1.2
Emulsion sizesc 50 18.8 15.7 14.8 8,478 75.7 -1.2
Surface sizesd various 6.4 6.4 6.1 4,838 43.2 -1.2
Alkaline-reactive sizes
Alkyl ketene dimer (AKD) 15-25e 2.5 2.5 2.4 2,635 23.5 -1.2
Alkenyl succinic anhydride (ASA) 100 1.2 1.2 1.1 915 8.2 -1.2
Cationic polymers na 0.5 0.5 0.4 414 3.7 -1.2
Rosin soapc 50f 1.9 1.8 1.7 1,002 8.9 -1.2
Synthetic sizesg 40 0.1 0.1 0.1 77 0.7 -1.2
Total 41.2 45.0 42.4 28,074 250.7 -1.2%
a. Expressed on “as-sold” basis. There may be some double-counting as a result of the established categories. Some of these products are considered quasi-commodities, but all are included in the tabulation to provide a complete cov-
erage of all the sizes used in papermaking.
c. Emulsion sizes and rosin soap are made from imported gum rosin, except Harima Chemicals’ rosin from tall oil. Typical products are fortified rosins, maleic rosins, and fumaric rosins made by concentration with maleic anhydride and
fumaric acid.
d. Excludes starch and polyvinyl alcohol, which are sometimes classified as surface sizes. (Usually they are referred to as “clear coatings.” They are covered in the Specialty coatings section of this report.)
e. Recently the average percent active has tended to increase because the number of 20%-active-basis products has been increasing.
f. Recently the average percent active has tended to increase because the number of 50%-active-basis products is increasing from 30% in the past.
g. The metal soap of an ASA made from the reaction of a C13–C14 olefin with maleic anhydride.
In 2017, the market value for specialty paper sizes amounted to ¥28.1 billion ($251 million). Rosin emulsions are the
major size used in Japan and accounted for about 76% of the volume consumption of sizes in 2017. Sizes that can be used
in neutral pH conditions are especially useful with calcium carbonate. This type is preferred for production processes of
plain paper. In the alkaline-reactive sizes market, the share of AKD was around 60% in 2017. The total paper size market is
expected to decrease at 1.2% annually through 2022.
Market participants
The leading suppliers of each type of sizing agent in Japan are summarized in the following table. Arakawa Chemical
Industries produces a wide product line and accounts for most of the market.

Leading Japanese suppliers of specialty paper
sizes—2018
Size Supplier
Alkaline reactive sizes
AKD Arakawa Chemical
Harima Chemicals
Seiko PMC
ASA Arakawa Chemical
Seiko PMC
Japan NSC
Cationic sizes Arakawa Chemical
Seiko PMC
Harima Chemicals
Emulsion sizes Arakawa Chemical
Harima Chemicals
Seiko PMC
Rosin sizes Arakawa Chemical
Harima Chemicals
Seiko PMC
Surface sizes Arakawa Chemical
Seiko PMC
Harima Chemicals
Prices
Japanese market prices for paper sizes in 2017 are shown in the following table.
Japanese market prices for specialty paper sizes—2017a

(100% basis)
Yen per Dollars per Active
kilogram kilogramb ingredients
Alkaline-reactive sizes
AKD 1,100 9.82 20-30
ASA 800 7.14 100
Cationic polymer 900 8.04 20-100
Rosin emulsion 600 5.36 50
Rosin soap 570 5.09 50
Surface sizes 760 6.79 20-30
Synthetic sizes 700 6.25 40
a. Specialty starches (which may be multifunctional) are excluded here and are accounted for in the sections on Pigment binders, Dry-strength addi-
tives, and Specialty coatings.
Source: IHS Markit.

Although Japan has less resources of rosin, Japanese manufacturers of rosin-based sizes have established a strong position
in the domestic marketplace. This suggests the importance of R&D capability and development of close relationships with
papermaking companies.
Increasing use of wastepaper has provided size suppliers with a growing market opportunity for AKD, ASA, and rosin
emulsions for the production of neutrally sized papers.

Surface sizing has become important because of the production of high-quality paper, particularly for ink-jet printing.
Ink-jet printing technology requires more sophisticated sizes and sizing technology to provide faster print speeds and
finer full color printouts.
In Japan, basic dyes, direct dyes, pigments, and fluorescent whitening agents are consumed in paper making. The most
common dyes used are shown below.
Common dyes used in papermaking in Japan

Basic dyes Basic Green 4
Basic Violet 1, 3, and 10
Basic Yellow 2 and 12
Direct dyes Direct Blue 86, 200, 201, and 203
Direct Orange 26 and 39
Direct Red 23 and 81
Direct Yellow 11, 125, 127, and 142
Yellow is the major color shade, accounting for approximately 60% of colored paper manufactured in Japan. Direct dyes
are used for the yellow pages of telephone directories, colored quality paper, and colored paper in some books. Direct
Yellow 11 is used mainly for paperboard. Direct Orange 26 is the major dyestuff consumed for printing paper. Direct
Yellow 12, Direct Red 261, and Direct Blue 15 were also used in the pulp and paper industry, but their consumption
declined because they release amines that are considered to be hazardous.
Basic dyes are used for paperboard, corrugated board, newsprint, and lower-quality paper for magazines. Representative
dyes by color shade are Basic Yellow 2, Basic Violet 1, and Basic Green 4. Basic dyes have a higher solubility in water, so
they are supplied in aqueous solutions in concentrations ranging from 40% to 75%. The largest disadvantage of basic dyes
is their weaker lightfastness than direct dyes.

The following table presents Japanese consumption of dyes and pigments in papermaking.
Japanese consumption of dyes and pigments in papermakinga

Average annual
Volume Value volume
2014 2017 2022 yen dollarsb (percent)
Basic dyes 1.9 1.9 1.8 2,321 20.7 -0.3
Direct dyes 5.1 5.1 5.0 2,300 20.5 -0.3
Fluorescent whitening agents (FWA) 6.4 6.4 6.3 1,592 14.2 -0.3
Organic pigments 1.0 1.0 1.0 454 4.1 -0.3
Total 14.3 14.3 14.1 6,667 59.5 -0.3%
a. Data do not include Japanese consumption of leuco dyes.
In 2017, approximately 7,000 metric tons of dyes, 6,400 metric tons of fluorescent whitening agents (FWAs), and 1,000
metric tons of organic pigments were consumed in the Japanese pulp and paper industry. Overall consumption of dyes and
pigments totaled 14,300 metric tons with a value of ¥6.7 billion ($60 million) in 2017.
Future demand is expected to decrease at 0.3% annually through 2022.

Market participants
The leading producers of dyes and pigments for papers in Japan are shown below.
Leading Japanese producers

Pleaseofuse
dyesAdobe,
and pigments for papermaking—2018
Basic dyes Direct dyes FWA
Archroma Japan X X X
BASF Japan X X X
Hodogaya Chemical X X
Nippon Chemical Works
Contact Customer CareX (customercare@ihs.com)
X
Nippon Kayaku X X
Nippon Soda X
BASF Japan has a facility for paper dye formulation at its Yokkaichi plant site in the Mie Prefecture. The company is quite
active not only in the paper dye business but also in other paper chemicals such as wet-strength agents.
Archroma Japan supplies imported dyes to the Japanese market.
Nippon Kayaku holds the leading position in the direct dyes segment, but the company is not active in the basic dyes
segment, where BASF Japan is the leader, followed by Hodogaya.
Nippon Kayaku is the leading supplier of FWAs to the paper industry, followed by Nippon Soda, Archroma, and BASF.
Prices
In Japan, direct dyes for the paper industry are a little more expensive than those used in the textile industry, but FWAs
for paper are much less expensive than those for textiles. Some representative prices for paper dyes in Japan are tabulated
below.
Japanese list prices for selected paper dyes—2017

Liquid Powder
Dye content Yen per Dollars per Yen per Dollars per
(percent) kilogram kilograma kilogram kilograma
Basic Green 4 50% 1,250 11.16 — —
Basic Violet 1 40% 1,250 11.16 — —
Direct Blue 86 25% 450 4.02 1,100 9.82
Direct Orange 26 20% 470 4.20 2,400 21.43
Direct Yellow 11b 20% 250 2.23 — —
Direct Yellow 142 25% 450 4.02 1,800 16.07
Fluorescent whitening agents 20% 250 2.23 — —
b. Currently the major yellow dye in the papermaking industry.

In Japan, human health and safety, preservation of the environment, and the responsible care program in the pulp and
paper industry have all driven the development of new dyes used for papermaking. Japanese paper manufacturers tend to
prefer cationic direct dyes because they have a better affinity with cellulose than acidic direct dyes. For example, Nippon
Kayaku supplies cationic direct dyes, including seven shades of Kayafect® for paper use. Basic Yellow dyes have almost
disappeared from the market because of increased human health concerns about basic dyes, and have been replaced by
cationic direct dyes.
The trend of reusing wastepaper requires that dyes be suitable for the paper recycling system. In particular, the use of
waste magazines affects the shades of dye to be used, because magazines generally contain a larger amount of colored
paper than waste newsprint does. Since the complete removal of dyes from waste magazines is difficult, sometimes larger

amounts of dyes and/or different shades of dye are required to compensate for the remaining color in order to obtain the
desired shade. The need for dyes that have good colorfastness is an ambivalent requirement because they must also be
easily removed in the deinking process
With regard to FWAs, Please use isAdobe,

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of FWAs, mainly from China, will
continue to supply the domestic market.
Currently, almost all paper dyes and FWAs are supplied in liquid form. However, there is worsening pressure from
customers for Contact
price reductions.
CustomerDye suppliers have responded by increasing the
Care (customercare@ihs.com) solubility
if you haveofany
dyesquestions.
to save transportation
costs. In general, FWAs are supplied as 20–25% aqueous solutions. Direct dyes are supplied in a range of solids content,
while basic dyes are supplied in more concentrated liquid form (40–75%).
Wet-strength resins
Polyamide-epichlorohydrin resins are the major wet-strength papermaking resins used in Japan. Urea- formaldehyde (UF)
and melamine-formaldehyde (MF) resins are only used for a very limited number of special applications, such as
construction paper. Even in this application, however, the use of these formaldehyde-based resins, particularly UF, has
been phased out over of health and safety concerns in both the manufacturing environment and in the consumer end,
such as the so-called sick-house syndrome in Japan.
With regards to polyamide-epichlorohydrin resins, conventional products include a few percent of low-molecular-weight
contaminants (e.g., dichloropropanol) derived from epichlorohydrin that can cause a positive Ames test. Advanced
products include less than 0.4% of these contaminants, since the production process has been improved.

The Japanese consumption of specialty wet-strength resins in papermaking is shown in the following table.
Japanese consumption of specialty wet-strength resins in papermaking

(dry weight basis)
Average annual
Volume Value volume
Polyamide-epichlorohydrin resins 5.6 5.6 5.6 4,511 40.3 -0.3
Melamine-formaldehyde resins neg neg neg neg neg —
Urea-formaldehyde resins neg neg neg neg neg —
Total 5.6 5.6 5.6 4,511 40.3 -0.3%
In 2017, about 5,600 metric tons of polyamide-epichlorohydrin wet-strength resins with a value of ¥4.5 billion ($40
million) were consumed in papermaking in Japan. Consumption of wet-strength resins is expected to decrease at 0.3%
annually through 2022.
Market participants
In Japan, polyamide-epichlorohydrin resins are supplied by Arakawa Chemical, Seiko PMC, Harima Chemicals, and Toho
Chemical Industry. Seiko PMC and Arakawa Chemical are the leading suppliers.
Prices
In 2017, Japanese market prices for polyamide-epichlorohydrin resins were ¥800 ($7.14) per kilogram.

Consumption of tissues and paper towels is expected to remain relatively stable and Japanese consumption of wet-
strength resins is expected to remain flat to declining in the next five years.
Specialty coatings
In Japan, a variety of chemicals are sometimes used as a topcoat over coated paper and paperboard mainly to increase
water resistance and/or oil and grease resistance. For a clear topcoat, oxidized starch and polyvinyl alcohol are usually
used. This kind of coating is popular because it adds surface strength and size to plain paper using the sizing press process.
Functionally, these clear coatings could be classified as surface-strength agents, but in Japan they are considered specialty
coatings. Polyvinyl alcohol is also used as a binder for thermo-sensitive and pressure-sensitive paper.
Polyacrylamide, which is used as a dry-strength additive, is also used at size press machines for specialty coatings.
However, it is included in the dry-strength additive segment in this report. Silicones are coated on paper as either water-
and oil-repellent agents or release agents, mainly for release liners and casting paper.
Polyethylene resins and some types of metal complex compounds are used as water-repellent wax emulsions in Japan.
Polyvinylidene chloride, carboxymethylcellulose (CMC), fluorochemical finishes, and polyvinyl alcohol are used as oil-
and water-repellent agents. Nitrile-butadiene latex (NBR) is also sometimes used as topcoat.

The following table shows Japanese consumption of coating specialties.
Japanese consumption of specialty coatings for paper

Average annual
Volume Value volume
Oxidized starch 193.3 221.4 218.4 23,247 207.6 -0.3
Silicones 5.8 5.8 5.7 4,954 44.2 -0.3
Polyvinyl alcohol 12.4 11.0 10.8 4,717 42.1 -0.3
Carboxymethylcellulose 0.5 0.5 0.4 135 1.2 -0.3
Total 211.9 238.6 235.4 33,053 295.1 -0.3%
In 2017, about 239,000 metric tons of specialty coatings with a value of ¥33.1 billion ($295 million) were consumed in
papermaking in Japan. Consumption is expected to decrease at 0.3% annually through 2022.
Newspaper publishers have adopted clear coatings to meet new printing technologies such as offset printing. More than
80% of newspaper publishers have adopted offset printing in order to meet increasing color printing needs. Increasing
printing speeds require improved paper strength, which can also be achieved using topcoats. (See also the Dry-strength
additives section.)
Major participants
Japanese producers of specialty coating products include many companies that market dry-strength agent products. They
are summarized in the following table.

Major Japanese producers of specialty coatings—2018
Company Remarks
Carboxymethylcellulose DSK Leading supplier.
Daicel FineChem
Nippon Paper Group
Oxidized starch Japan Corn Starch
Nihon Shokuhin Kako Leading supplier.
Oji Corn Starch Leading supplier.
Polyvinyl alcohol Kuraray
Contact Customer Leading supplier.
Care (customercare@ihs.com) if you have any questions.
Nippon VAM & POVAL
Japan Coating Resin
Silicones Dow Corning Toray Leading supplier.
Momentive Performance Materials
Shin-Etsu Chemical
DSK, Daicel FineChem, and Nippon Paper Group supply CMC.
Nihon Shokuhin Kako and Oji Cornstarch are the leading suppliers of oxidized starch in Japan. Nihon Shokuhin Kako
supplies its products mainly to Mitsubishi Paper, Hokuetsu Kishu Paper, Nippon Paper, and Daio Paper, while Oji
Cornstarch supplies oxidized starch mainly to Oji Paper, Chu-etsu Pulp, and Hokuetsu Kishu Paper.
Kuraray is estimated to hold approximately 40% of the polyvinyl alcohol paper use market in Japan. Nippon Synthetic
Chemical follows with a market share of approximately 30% and Nippon VAM & POVAL with an estimated 20% share in
recent years.
Shin-Etsu Chemical is the leading supplier of silicones, followed by Dow Corning Toray and Momentive Performance
Materials.
Prices
Representative prices for selected special coatings in Japan are given below.
Typical Japanese prices for specialty coatings—2017

(dry basis)
Yen per kilogram Dollars per kilograma
Carboxymethylcellulose 300 2.68
Oxidized starch 105 0.94
Polyvinyl alcohol 430 3.84
Silicone fluids 850 7.59

Japanese paper producers and processing companies have been trying to find useful new applications for paper and also to
meet existing market requirements. Usually, these new uses are made possible by coatings. Examples of high-value-added
papers now used in Japan are as follows:
• Ink-jet printing paper (having higher printing speed compatibility and photo-grade quality)
• Bitokoshi (ultralightweight coated paper)
• Flame-retardant paper
• Release paper

• Adhesive paper
• Recyclable moisture-prevention packaging paper
Please
• Oil- and water-repellent paperuse Adobe, Chrome, or Internet Explorer to read this file.
R&D into suitable chemicals for these and new types of paper is expected to continue further. Because the profitability of
the Japanese pulp and paper industry has remained sluggish, the industry will seek to improve profitability by launching
high-value-added products
Contact into the market.
Customer Care Requirements for higher-speed paper
(customercare@ihs.com) if youcoatings,
have anyhigher-speed printing, and
questions.
easily recyclable paper will support growth in demand for specialty coatings in the future.
China
The following table shows the size of the specialty paper chemicals market in China in terms of value as well as the
volume growth rates for the individual product groups. Consumption of specialty paper chemicals in China is forecast to
grow at an average rate of 1–2% per year to 2022.
Chinese consumption of specialty paper chemicalsa

Average annual
volume
growth rate,
2017–22
2011 2014 2017 (percent)
Pulping specialties 9 9 9 1.0
Processing aids
Retention/drainage aids 243 273 250 2.8
Slimicides/biocides 72 95 120 1.0
Defoamers 70 71 70 1.5
Pitch-control agents 32 34 37 2.0
Pigment binders/coatings 1,900 2,100 2,231 1.5
Dry-strength additives 520 542 631 2.2
Sizes 395 429 545 1.2
Dyes, pigments, and fluorescent whitening agentsb 195 200 280 1.3
Specialty coatings 105 112 91 1.1
Total 3,781 4,129 4,554 1.7%
a. Based on an exchange rate of 6.46 renminbi per dollar in 2011, 6.16 renminbi per dollar in 2014, and 6.75 renminbi per dollar in 2017.
b. As-is basis.
Although the paper produced in China is relatively lower in cost and quality than in the United States, Western Europe,
and Japan, and requires fewer specialty chemicals, this situation is changing. Demand for paper chemicals in terms of
product variety and product volume is growing.

Deinking agents
In China, the technology for manufacturing pulp from wastepaper has been comparable with those in the developed
regions since 2000. Large paper mills have imported the most advanced wastepaper pulp manufacturing lines including
the specialty chemicals requirement. Thus, deinking technology is quite common in China. Consumer preference for

brightness also meant increased use of deinking and bleaching agents. Presently, wastepaper is processed by traditional
alkaline deinking technology. The chemicals involved in the deinking process include sodium hydroxide (NaOH), sodium
silicate (Na2SiO3), deinking agents, and chelants. The major deinking agents consumed in China are fatty acid soaps and
nonionic surfactants. The amount of fatty acid soap added into the wastepaper ranges between 0.2–0.4% and the quantity
Please
of surfactants are around 0.1%. use Adobe, Chrome, or Internet Explorer to read this file.
China has been investigating the use of enzymatic deinking agents. It is believed that some enzyme deinking agent has
been tested and applied in paper mills; however, adoption is slow because of the high cost.
The following table shows estimated volume consumption of deinking agents in China. The value of consumption
amounted to $130 million in 2017.
Chinese consumption of deinking agents—2017

Surfactants 35-40
Fatty acids 25-30
Total 60-70
From 2008 to 2011, wastepaper pulp consumption increased 28% per year. Growth decelerated considerably in 2011–16 to
2% per year following a slowdown in the paper industry. It is expected growth will be minimal in the next five years.
Corresponding growth in consumption of deinking agents will be minimal at about 1% per year during 2017–22. The
following table presents the consumption of wastepaper pulp in China.
Chinese consumption of wastepaper pulp

2008 44,390
2011 56,600
2014 61,890
2015 63,380
2016 63,290
Market participants
The main producers of deinking agents in China are listed in the following table.

Major Chinese producers of deinking agents—2018
Company and location Product
Guangdong Shenzhen Leveking Biotechnology
Engineering Co., Ltd.
Shenzhen, Guangdong Enzymatic deinking agent
Hanghua Harima Co., Ltd.
Hangzhou, Zhejiang Deinking agents
Henan Titaning Chemical
Technology Co., Ltd. Contact Customer Care (customercare@ihs.com) if you have any questions.
Zhengzhou, Henan Deinking agents
Hubei Zhongzhitian Technology Limited Company
Jiayu, Hubei Deinking agents
Jiangmen Dazhong Technology Co., Ltd.
Jiangmen, Guangdong Deinking agents
Liaoning Yingkou Kangru Chemical Co., Ltd.
Yingkou, Liaoning Deinking agents
Ningbo Yazhong Fine Chemical Co., Ltd.
Ningbo, Zhejiang Deinking agents
Shanghai Liansheng Liansheng Chemical Co., Ltd.
Shanghai Deinking agents for floation method
Shanghai Tiantan Auxiliaries Co., Ltd.
Shanghai Deinking agents
Xiaoshan, Zhejiang Noionic surfactant deinking agent
Well (Fujian) Co., Ltd.
Fuzhou, Fujian Deinking agents at 5,000 metric tons of annual
capacity
Zhejiang Hangzhou Greenphile Bioindustrial
Solution Co., Ltd.
Hangzhou, Zhejiang Enzymatic deinking agent
Zhejiang Hangzhou Jerry Fine Chemical Co., Ltd.
Hangzhou, Zhejiang Deinking agents for solvent method
Zhejiang Hangzhou Research Institute of
Chemical Technology
(Hangzhou Research Institute of Chemical
Technology Co., Ltd.)
Hangzhou, Zhejiang Formulated deinking agents for both solvent
method and flotation method
Prices
In 2017, the price of fatty acid soap deinking agents was in the range of $0.60–0.65 per kilogram and the price of
surfactants was in the range of $2.10–2.40 per kilogram. Prices of imported enzyme deinking agents were around $220 per
kilogram.

In the near term, capacity for wastepaper pulp will remain at current levels. The goal is to improve the quality of pulp
while lowering energy consumption. Surfactant types of deinking agents will have a better future than fatty acid soaps
because of their high efficiency and well-established application technology. With the replacement of fatty acid soaps
with surfactants, the volume of consumption of deinking agents will decline steadily. Enzymes are expected to gain some
share of the deinking market, albeit very slowly. Deinking agent producers should focus on improving the quality of
existing product lines while developing new products. Quality service and close collaboration with customers are the keys
to success.

The major chemicals involved in pulp bleaching process include H2O2, sodium hyposulfite (Na2S2O4), formamidine sulfinic
Please
acid (FAS), soldium silicate, anduse Adobe,
chelates Chrome, diethylenetriamine
of pentasodium or Internet Explorer to read(DTPA)
pentaacetate this file.
and
ethlylenediaminetetraacetic acid (EDTA). FAS is more commonly known as thiourea dioxide in China, and is widely used
in combination with hydrogen peroxide or other commodity bleaching agents. FAS consumption has grown rapidly, with
consumption reaching 10,000 metric tons in 2017. However, future growth is hindered by its high price.
DTPA and EDTA are the two most commonly used chelates for bleaching in China. DTPA has an advantage over EDTA
because of its good performance in pulp manufacturing lines. DTPA and EDTA chelates are widely used in hydrogen
peroxide bleaching systems. The quantity of DTPA added into the pulp is 0.2–0.3% of the pulp in the hydrogen peroxide
bleaching system. In 2017, China consumed 18,000 metric tons of these chelants. Consumption is expected to grow at 2%
per year in the next five years. DTPA and EDTA help improve paper whiteness and reduce the amount of hydrogen
peroxide required. Consumer preference for white paper makes bleaching a necessary step in paper mills.
As recently as 2010, pulp bleaching chemicals were based mainly on sodium hypochlorites. Environmental protection
pressure pushed the upgrade of bleaching technology for pulp industry. More than half of the wood pulp capacity in China
has adopted hydrogen peroxide (H2O2) as a bleaching agent, following the start-up of large scale totally chlorine-free (TCF)
wood pulp capacities. The older pulp plants were also converted to TCF or elemental chlorine–free (ECF) technology. The
ECF process refers to three-step bleaching using chlorine dioxide–H2O2-chlorine dioxide. The TCF process refers to H2O2
technology. Both TCF and ECF bleaching have been adopted in wastepaper pulps as well. As mandated in the Chinese
government’s action guide “Action Plan for Prevention and Control of Water Pollution”, the use of chlorine as a bleaching
agent in paper processing will no longer be allowed. By 2020, all chlorine bleaching systems in paper-making plant will be
discontinued.
The following table shows the consumption of bleaching specialties in China.
Chinese consumption of bleaching specialties

Average annual
volume
2017 2022 growth rate,
Thousands of Millions of Millions of Thousands of 2017–22
metric tons renminbi dollarsa metric tons (percent)
EDTA and DTPA chelants 18 324 53 20 2.0
Formamidine sulfinic acidb (FAS) 10 180 27 11 1.5
Total 28 504 79 31 1.8%
a. Based on an exchange rate of 6.75 renminbi per dollar.
b. FAS is more commonly known as thiourea dioxide in China.
Market participants
The biggest FAS producer in China is Hongye Holding Group with 50,000 metric tons of annual capacity. The major
producers are listed below.

Major Chinese producers of formamidine sulfinic acid
Annual capacity
as of 2018
Company and (thousands of
location metric tons)
Haosen Biological Technology Co., Ltd.
Weifang, Shandong 7
Henan Huifeng Chemical Co., Ltd.
Puyang, Henan 15
Hexing Chemical Co., Ltd.
Puyang, Henan 12
Hongye Holding Group Corporation Limited
Puyang, Henan 50
Puyang Kaixin Chemical Co., Ltd.
Puyang, Henan 16
Qingzhou Guangda Chemical Co., Ltd.
Qingzhou, Shandong 3
Shandong Weifang Ruimin Chemical Co., Ltd.
Weifang, Shandong 4
Shandong Weifang Shenghe Auxiliary Co., Ltd.
Weifang, Shandong 5
Yantai Dasteck Chemical Co., Ltd.
Yantai, Shandong na
Prices
In 2017 the price of FAS was 15–21 renminbi per kilogram ($2.22–3.11 per kilogram); prices for DTPA and EDTA were 14–19
renminbi per kilogram ($2.07–2.81 per kilogram).

In China, consumers equate paper whiteness with good quality. Consequently, bleaching will be an important and
growing process in paper mills. Hydrogen peroxide will continue to replace sodium hypochlorites as the preferred
bleaching agent. This provides growth opportunity for DTPA/EDTA chelants and FAS to a certain extent. FAS will be used
in high-end paper production but its price will be an obstacle to wider adoption
Enzymes
Enzyme production began in China some 20 years ago. The very first applications were in the food and feed industries. In
2016, production reached 1.28 million metric tons and exports were 86,000 metric tons. Consumption growth averaged
10% annually in the last five years. Almost 70% of domestic consumption went into the food and feed industries. The
remainder went into other industries including pharmaceuticals, detergents, textiles, and paper.
China is facing severe pollution brought about by 30 years of rapid industrialization. Enzymes are recognized as
environmentally friendly biocatalysts or additives for manufacturing industries. Increasing number of companies in the
textile and paper industries are devoting R&D budgets to study the use of enzymes as replacements for traditional
processing chemicals. Major applications in the papermaking industry include deinking agents, pulp fiber treatment, pulp
bleaching, starch modification, and wastewater treatment.

The added content of enzymes in paper pulp is usually very small, in the level of 20–200 grams per metric ton of dry pulp.
They can be used to replace traditional chemicals in either alkaline or acidic paper making processes. In alkaline
conditions, enzymes can reduce the amounts of NaOH needed to meet the high PH value requirement while still keeping
the chemical oxygen demand (COD) value of the treated water at reasonable values. In the acidic environment, enzymes
can replace traditional bleaching agents chlorine or chlorinated compounds. Chlorine is regarded as dangerous, and it is

difficult to remove it from the wastewater or recycled water. Enzyme application in papermaking could reduce the
consumption of traditional chemicals and decrease the water treatment cost. It is apparent that enzymes are
environmental friendly products for papermaking industry.
Since 2015, the ChinesePlease use Adobe,

government Chrome,
has intensified ortoInternet
efforts improve Explorer to readand
the environment, this
hasfile.
introduced regulations
to guide its manufacturing industry. One of the most important policies is the Made in China 2025 Technology Roadmap
in Key Areas, in which enzymes are listed as industrial biocatalysts that are supported by the government. Another
important policy is the Action Plan for Prevention and Control of Water Pollution, in which the papermaking industry is
Contactunder
listed as a key industry Customer Care
governance. (customercare@ihs.com)
The if you
policy stipulates that all chlorine havewill
bleaching anybequestions.
replaced by ECF
bleaching process or other environmental processes by 2020. These regulations bode well for the increased use of enzymes
in the paper industry.
Government regulations have driven consumption of enzymes in the paper industry since 2015. The market is still fairly
small and is estimated to be about $20 million in 2017.
Market participants
The following companies manufacture enzymes in China.
Major Chinese producers of enzymes for paper processing—2018

Company and location Product
Beijing Smistyle Sci. & Tech. Development Co., Ltd.
Beijing Major enzyme producer in China, involved in producing enzymes for paper-
making.
Guangdong Shenzhen Leveking Biotechnology Engineering Co., Ltd.
Shenzhen, Guangdong Produces enzymes for various industries, including food, textile, paper, and
cosmetics. For the paper industry, produces enzymes for deinking and
bleaching.
Guangdong VTR Bio-Tech Co., Ltd.
Zhuhai, Guangdong Produces enzymes for various industries, including food, textile, paper, and
cosmetics.
Hunan Lier Kang Bio-Tech Co., Ltd.
Yueyang, Hunan Produces enzymes for various industries, including food, textile, paper, and
feed.
Jienuo Enzyme Co., Ltd.
Zaozhuang, Shandong Produces enzyme for surface sizing.
Novozymes China
Beijing Novozyme Denmark invested in plants located in Tianjin, Shenyang, and
Suzhou.
Rising Star Bio-Tech Co., Ltd.
Guangzhou, Guangdong Produces enzymes for papermaking applications.
SuKaHan Biotechnology Co., ltd.
Weifang, Shandong Produces enzymes for the food, textile, and paper industries.
Wuhan Sun HY Biological Co., Ltd.
Wuhan, Hubei Major enzyme producer in China with enzyme capacity for pulp bleaching.
Youtell Biochemical Co., Ltd.
Shanghai Major enzyme producer in China.
Zhejiang Hangzhou Greenphile Bioindustrial
Solution Co., Ltd.
Hangzhou, Zhejiang Produces enzymes for enzymatic deinking, pitch-control, bleaching-boosting,
and biocide.
Most producers manufacture enzymes only for the food and feed industries. Textiles and paper are just an extension to
their existing business. Zhejiang Hangzhou Greenphile Bioindustrial Solutions is the only company known to focus
exclusively on paper applications.

Prices
Although there are active R&D efforts to develop enzymes for paper applications and domestic production is growing
rapidly, enzyme quality still lags below the requirements of paper industry. Consequently, consumers rely on imported
material, which commands
Please higher
useprices than Chrome,
Adobe, domestic product. The following
or Internet Explorershows current
to read enzyme
this file. prices in China.
Domestic Chinese market prices for enzymes
Suggested
Specified Renminbi per Dollars per added
application kilogram kilogram amount
Formulated by using imported enzymes Deinking 1,400-1,600 207.00-237.00 30-50 grams per ton dry pulp
Domestic produced enzymes (formulated) Deinking 200-230 30.00-34.10 75-125 grams per ton dry pulp
Pitch-deposit-control 650-800 96.00-119.00 30-50 grams per ton dry pulp
Pulp processing for tissue 650-800 96.00-119.00 45-70 grams per ton dry pulp
Bleaching improvement 650-800 96.00-119.00 45-50 grams per ton dry pulp
Starch modifier 65-75 9.60-11.10 500-1,000 grams per ton starch
Wastewater treatment 700-880 103.70-130.40 0.3-9 grams per ton water
Pulping specialties
In China, anthraquinone (AQ) and its derivatives are the most commonly used digestion aid in alkaline pulping. Other
often-used digestion aids include sodium polysulfide, sodium sulfite, and green oxygen. AQ use is prevalent among
domestic paper manufacturers as a digestion assistant or a cooking agent to improve pulp yield, reduce digestion time, and
to reduce alkali usage. Total wood pulp and nonwood pulp production was estimated at around 16 million metric tons in
2016. About 50% of pulp producers used AQ in process pulping. It is estimated that total AQ consumption was 3,500
metric tons, valued at $8.7 million in 2017.
Major participants
China’s major producers of AQ for the pulp and paper industry are listed in the following table.

Major Chinese producers of anthraquinone for pulp
and paper—2018
Company and plant location
Hebei Wuqiao Shunda Chemical Co.
Wuqiao, Hebei
Jiangsu Changzhou City Zaojiang Chemical Factory
Changzhou, Jiangsu
Jiangsu Jiangdu Fine Chemical Plant
Yangzhou, Jiangsu Contact Customer Care (customercare@ihs.com) if you have any questions.
Jiangsu Jiangyin Huaxi Tongda Chemical Industry Co., Ltd.
Jiangyin, Jiangsu
Jiangsu Jiangyin Mazhen Town Organic Chemical Co., Ltd.
Jiangyin, Jiangsu
Jiangsu Nanjing Hengxinda Chemical (Group) Co., Ltd.
Nanjing, Jiangsu
Jiangsu Xingchangjiang Group Co.
Jiangyin Changjiang Chemical Plant
Jiangyin, Jiangsu
Jiangsu Xuzhou Kaida Fine Chemical Co., Ltd.
Xuzhou, Jiangsu
Jiangsu Yabang Group Company
Changzhou Synthetic Materials Plant
Changzhou, Jiangsu
Qingdao Main Fine Chemical Co., Ltd.
Qingdao, Shandong
Shandong Minsheng Coal Chem. Co., Ltd.
Jining Kemcoal Chemical Company Ltd.
Jining, Shandong
Shandong Shengong Chemical Co., Ltd.
Zaozhuang, Shandong
Zhejiang Jihua Group
Hangzhou, Zhejiang
Prices
In China, AQ prices typically vary with those of phthalic anhydride and benzene, the primary raw materials for AQ
production. In general, AQ made via oxidation is priced about 5–10% higher than AQ made from the synthetic route. AQ
prices are highly dependent on both raw material prices and overseas demand for pulp. The domestic price of AQ pulping
agents in China ranged from 15.0 to 30.0 renminbi per kilogram in 2017. The prices of tetrahydroanthraquinone (THAQ)
salts are as diverse as the different varieties. The following table shows market prices for AQ in China.
Domestic Chinese market prices for anthraquinone

Renminbi per Dollars per Exchange rate
kilogram kilogram (renminbi per dollar)
2008 19.0-23.0 2.73-3.31 6.94
2011 18.0-25.0 2.79-3.87 6.46
2014 14.0-32.0 2.27-5.19 6.16
2017 15.0-30.0 2.22-4.44 6.75

In China, THAQ, a derivative of AQ, is believed to be even more efficient as a digestion aid than AQ, and may emerge as a
substitute for AQ. However, environmental friendliness and safety issues have become primary concerns for pulping
specialty producers. Production costs to meet environmental regulations are increasing. This trend is expected to slow
down the consumption of AQ in the paper and pulp industry.

Processing aids
Polyacrylamide (PAM), in particular cationic PAM (CPAM), is the most common synthetic retention aid for paper
processing in China. PAM used as a retention aid is generally in the middle molecular range. CPAM was originally used as a
single-polymer system. However, as the volumes of recycled furnish grew, single-polymer retention systems became less
effective in paper processing. Dual-polymer systems were developed to improve efficacy. The most commonly used
Contact
polymers include Customer
CPAM/anionic Care (customercare@ihs.com)
polyacrylamide (APAM), PAM/bentonite-based if you have any questions.
microparticles, and PAM/colloidal silica
microparticles. Other retention aids include polyethyleneimine (PEI) and polyamines, but they have limited usage in
paper because of the high prices and imperfect performance.
In China, the dual-polymer retention system has been widely used at large and midsized papermaking mills, and most
small papermaking plants still use a single-polymer retention system.
An estimated 66,000 metric tons of PAM with a value of $225 million were consumed as retention and drainage aids in
paper processing in 2017. Microparticles, which are colloidal silica and bentonite- based products, were used in dual-
polymer systems. Consumption amounted to 32,000 metric tons in 2017. The estimated market data on retention and
drainage aids are shown in the table below.
Chinese consumption of retention and drainage aids in papermaking

Average annual
volume
Polyacrylamides 66.0 1,518 224.9 74.7 2.5
Microparticles 32.0 145 21.5 38.0 3.5
Otherb 0.6 25 3.7 0.7 2.0
Total 98.6 1,688 250.1 113.3 2.8%
b. Other includes polyethyleneimine, polyamines, polyamide-epichlorohydrin resins (PAE), polydiallyl dimethyl ammonium chloride (PDADMAC), and polyethylene oxide (PEO).
Market participants
The following table lists China’s major producers of PAM and their annual capacity in 2017.
Major Chinese producers of polyacrylamides

Annual capacity
as of 2018a
Company and (thousands of
plant location metric tons) Remarks
Anhui Jucheng Fine Chemicals Co., Ltd.
Huaibei, Anhui 70 Annual PAM capacity expanded to 70,000 metric tons in 2016.
Cationic PAM products capacity is 25,000 metric tons.
Anhui Tianrun Chemicals Co., Ltd.
Bengbu, Anhui 50 Annual cationic PAM capacity is 5,000 metric tons.
BASF (Nanjing) Co., Ltd.
Nanjing, Jiangsu 20 Produces cationic PAM for water treatment and paper process-
ing.
Beijing Hengju Chemical Group Corporationb
Beijing 100 Annual cationic PAM capacity is 20,000 metric tons. Most PAM
are marketed for oil production, very little for paper processing.
Dongying Guangzheng Chemicals Co., Ltd.
Dongying, Shandong 10 Produces ionic PAM for oil production; no PAM for paper pro-
cessing.

Major Chinese producers of polyacrylamides (continued)
Annual capacity
as of 2018a
Company and
Please use Adobe, Chrome, or(thousands
Internetof
plant location metric tons) Remarks
Henan Nanpu Chemical Co., Ltd.
Zhengzhou, Henan 10 Produces cationic PAM for paper processing and water manage-
ment.
Henan Zhengjia Green Enerrgy Co., Ltd.
Xinzheng, Henan 60 The company does not produce PAM for paper processing.
Jiaozuo Yisheng Chemical Co., Ltd.
Jiaozuo, Henan 51 Annual PAM production in 2016 was only 10,000 metric tons.
The company produces PAM for paper processing.
Jilin Oulian Chemical Technology Co., Ltd.
Jilin, Jilin 25 The company originally produced acrylamide and later began
production of PAM, including PAM for paper processing.
PetroChina Daqing Refining &
Chemical Company
No. 1 Polymer Factory
Daqing, Heilongjiang 130 All PAM produced for oil production.
No. 2 Polymer Factoryc
Daqing, Heilongjiang 25 All PAM produced for oil production.
Shandong Wanda Chemical Co., Ltd.
Dongying, Shandong 20 All PAM produced for oil production.
Sinopec Shengli Oilfield Chang’an Group
Shandong Polymer Bio-Chemicals Co., Ltd.
Dongying, Shandong 43 Came onstream in late 2000. In 2017, part of capacity was oper-
ated intermittently. All PAM are for oil production.
SNF (China) Flocculants Co., Ltd.
Taixing, Jiangsu 160 Annual cationic PAM capacity is 20,000 metric tons.
Solenis
(formerly Ashland Beijing Tianshi
Special Chemical)
Beijing 15 PAM products are used mainly for the paper industry.
Xinyong Biochemical Co., Ltd.
Ningbo, Zhejiang 10 The company is a major acrylamide producer, and built PAM ca-
pacity recently.
Total 799
a. Capacities are based on 100% active ingredient.
b. Formerly known as Beijing Chaoyang Water Treatment Agents Factory.
c. In January 2005, PetroChina Daqing Refining & Chemical Company acquired the 21,000 metric ton-per-year PAM plant, which originally belonged to Daqing Petroleum Administration Bureau (DPAB) Donghao Polymers Factory, and
took it as its No. 2 Polymer Factory.
Prices
The following table shows prices for PAMs in China.
Chinese prices for polyacrylamide

Anionic/nonionic Cationic
Renminbi per Dollars per Renminbi per Dollars per
kilogram kilograma kilogram kilograma
2010 20.0-22.0 2.94-3.25 30.0-35.0 4.41-5.15
2013 13.5-17.0 2.21-2.79 23.0-28.0 3.77-4.60
2014 13.0-16.0 2.11-2.60 22.0-27.0 3.57-4.38
2017 12.8-16.9 1.90-2.50 18.2-27.0 2.70-4.00
a. Based on the following exchange rates (renminbi per dollar): 2010, 6.8; 2013, 6.1; 2014, 6.16; 2017, 6.75.

APAM prices have been weak because of overcapacity. The price of CPAM has also been declining steadily since 2010.
Microparticles had the lowest price at 4.00–6.00 renminbi per kilogram ($0.60–0.90 per kilogram) in 2017.
Future trends and strategic issuesuse Adobe, Chrome, or Internet Explorer to read this file.
Please
Retention and drainage aids are necessary to reduce the loss of pulp and accelerate desorption of free water in a short time.
With stricter regulatory control on process water, retention and drainage aids will playa very important role in treatment
of recycled water.
Contact
In general, future growthCustomer
will dependCare
on the(customercare@ihs.com)
health of the paper industry. Toifweather
the sluggish market, producers of
retention aids should focus on improving product quality and performance. In particular, dual-polymer systems should be
optimized and use of various polymers should be explored.
Biocides
Organic biocides have been widely used for paper processing in China. However, large-scale paper mills are adopting
chloramines as the preferred biocide. Important biocides for the paper processing industry include methylene
bisthiocyanate, thiazine, isothiazolinone, organic bromide compounds, and chloramine. Chloramine is frequently used in
pulp processing, and the normal added quantity is 0.03–0.05% of the pulp.
The market value of the biocides for paper processing was estimated at $150–200 million in 2017. The specialty biocide
market accounted for 65–75% of the total market, at $120 million.
Market participants
The following table lists China’s major producers of slimicides and biocides.
Major Chinese producers of slimicides and biocides—2018

Company and plant location Isothiazolinones Chloramine-T Triazine Othera
Beijing Changhua Fine Chemical Factory
Beijing X
Best Chem. Co., Ltd.
Quzhou, Zhejiang X
Boya Xinyi Technology Co., Ltd.
Shijiazhuang, Hebei X
Chenlong Chemical Co., Ltd.
Jining, Shandong X
DICO Chemical Co., Ltd.
Wuhan, Hubei X
Foshan Liyuan Chemical Company Limited
Foshan, Guangdong X
Gongyi Jiezhiyuan Material Recovery Co., Ltd.
Gongyi, Shandong x
Hangzhou Yinhu Chemical Co., Ltd.
Hangzhou, Zhejiang X
Hebei Liangfang Aoke Chemical Co., Ltd.
Liangfang, Hebei X
Henan Luoyang Yingdong Chemical Co., Ltd.
Luoyang, Henan X
Hongxin Ruiyu Fine Chemical Co., Ltd.
Wuhan, Hubei X
Hubei Xiantao Zhongchu Chemical Industry Co., Ltd.
Xiantao, Hubei X
Jiangsu Changzhou Zhongnan Chemical Co., Ltd.
Changzhou, Jiangsu X
Jiangsu Nanjing Naco Water Treatment Technology Co., Ltd.

Major Chinese producers of slimicides and biocides—2018 (continued)
Company and plant location Isothiazolinones Chloramine-T Triazine Othera
Nanjing, Jiangsu X
Jiangsu Taicang Yanlin Chemical Plant Please use Adobe, Chrome, or Internet Explorer to read this file.
Taicang, Jiangsu X
Jiangsu Wujin Fine Chemical Factory
Jiangsu Xinyuan Bio-technology Development Co., Ltd.
Yixing, Jiangsu Contact Customer Care (customercare@ihs.com) if Xyou have any questions.
Jiaxing Anrui Material Technology Co., Ltd.
Jiaxing, Jiangsu X
Jiaxing Jinli Chemical Co., Ltd.
Jiaxing, Jiangsu X
Jinxi Yunxiang Pharmaceutical Co., Ltd.
Jinxi, Jiangxi X
Liaoning Dalian Bio-Chem Co., Ltd.
Dalian, Liaoning X
Liaoning Tieling Yuanneng Chemical Co., Ltd.
Tieling, Liaoning X
Shandong Bright Environmental Technology Co., Ltd.
Zibo, Shandong X
Shandong Huantai County Jinlong Chemical Co., Ltd.
Zibo, Shandong X
Shandong Huayou Technical Service Center
Jinan, Shandong X
Shandong Taihe Water Treatment Co., Ltd.
Zapozhuang, Shandong X
Shandong Zibo Keyu Chemical Co., Ltd.
Zibo, Shandong X
Shandong Zouping Country Dongfang Chemical Industry Co., Ltd.
Zouping, Shandong X
Shanghai Jianpin Chemical Industry Co., Ltd.
Shanghai X
Shanghai Liansheng Chemical Co., Ltd.
Shanghai X
Shanghai Weilai Enterprise Co., Ltd.
Shanghai X
Shanghai Zhujing Chemical Works
Shanghai X
Shanxi Tianji Group Fine Chemical Co., Ltd.
Lucheng, Shanxi X
3D Bio-Chemical Co., Ltd.
Shanghai X
Tianjin Tiancheng Pharmaceutical Co., Ltd.
Tianjin X
Xinxiangxian Xinhai Chemical Plant
Xixiang, Henan X
Zhongwan Biocide Co., Ltd.
Guangzhou, Guangdong X
a. Including azines, carbendazim, and cyanurates.
Prices
The prices of several specialty biocides used for paper processing in China are listed in the table below.

Domestic Chinese prices for slimicides and biocides—2017
Renminbi per Dollars per
Purity kilogram kilograma
Chloramine-T 90% Adobe, Chrome,
Please use 27.00-40.00or Internet Explorer
4.00-5.93 to read this file.
Hexahydrotriazine 74-78% 16.00-19.00 2.37-2.81
Isothiazolinones 14-15% 13.50-20.00 2.00-3.00

Increasing paper machine speed, combined with “zero” emissions in wastewater, are resulting in the abundance of carbon,
nitrogen, and mineral substances in the pulp fluids, providing a breeding ground for bacteria in the system. These factors
support the continued growth of biocides/slimicides in the paper industry. They are essential in preventing machine
corrosion which can result in expensive, unscheduled shutdowns in paper mills.
Formulators will need to develop a wide spectrum of biocides to prevent bacteria from developing resistance to existing
biocides.
Defoamers
Organosilicone compounds in emulsion form are the dominant foam control agents consumed in China. R&D in foam
control are currently focused on water-soluble chemicals, such as polyethers. Fatty alcohol surfactants are also being
investigated for defoaming. The consumption of foam control agents was estimated at $65–75 million in 2017. The market
will grow at an average annual rate of 1–2% in the next five years.
Market participants
The following table shows the producers of defoamers in China.

Major Chinese producers of defoamers—2018
Other
Organic Poly- or not
silicones
orethers
Internetclassified
a
Please use Adobe, Chrome, Explorer to read this file.
Beijing Chemical University Fine Chemical Plant X
Beijing
Changzhou Penghua Chemical Co., Ltd.
Datian Chemical Co.,Ltd. Contact Customer Care (customercare@ihs.com) if you have any questions.
Foshan, Guangdong X X
Deffeng Defoaming Co., Ltd.
Dongguan, Guangdong X X
Jiangsu Huajin Chemical Technology Co., Ltd.
Huai’an, Jiangsu X
Jiangsu Jianyu Auxiliary Technology Co., Ltd.
Yancheng, Jiangsu X X
Nanjing Huaxing Defoamer Co., Ltd.
Nanjing, Jiangsu X X
Shenzhen Anli Environmental Protection Technology Co., Ltd.
Shenzhen, Guangdong X X
Soaif Environmental Protection Co., Ltd.
Funing, Jiangsu X
Tengda Defoamer Co., Ltd.
Yancheng, Jiangsu X X
Thinking Fine Chemical Co., Ltd.
Yantai, Shandong X
Wancheng Technology Co., Ltd.
Hefei, Anhui X
Xinhaida Chemical Co., Ltd.
Zigong, Sichuan X X
Zhonglianbang Fine Chemical Co., Ltd.
Dongguan, Guangdong X X
Zhongwan New Material Co., Ltd.
Guangzhou, Guangdong X
a. Including fatty acid amides, fatty acid salts, and mineral oil.
Prices
Historical market prices for organic silicone defoamers are shown in the following table.
Chinese market prices for organic silicon defoamers

Renminbi per Dollars per Exchange rate
kilogram kilogram (renminbi per dollar)
2008 18.00-35.00 2.59-5.04 6.94
2011 12.58-28.00 1.95-4.33 6.46
2014 13.00-16.00 2.11-2.60 6.16
2017a 15.00-25.00 2.22-3.70 6.75
a. Formulated product.

The focus of defoamer research is on water-soluble products. Polyether- and fatty alcohol–types of defoamers will share
the market in the future. The defoamer market will grow only modestly in the future because of the slowdown in the
papermaking industry.

The market value of pitch-and deposit-control agents was estimated at $35–40 million in 2017. Currently, pitch deposit is
not a common problem Please use Adobe,
for papermaking Chrome,
plants or Internet Explorer
so many manufacturers do not taketopitch
readand
this file. agents as necessary
deposit
processing chemicals. However, they will become more important in the future as the share of recycled wastepaper pulp
in furnish continues to increase. Organic phosphates and carboxylic acid salts are used to eliminate inorganic types of
deposits. Organic types of deposits (such as adhesives) are controlled with the use of talcum, aluminum sulfate, and
organic fixing agents.
Market participants
The table below lists the major producers of pitch-deposit control agents.
Major Chinese producers of pitch-deposit additives—

2018
Company and plant location
Chenglan Chemical Co., Ltd.
Langfang, Hebei
Copolymer (Zhangjiagang) Chemicals Co., Ltd.
Zhangjiagang, Jiangsu
Fermer Technology Co., Ltd.
Zhangjiagang, Jiangsu
Hanghua Harima
Hangzhou, Zhejiang
Hubei Jiayun Chemical Technology Co., Ltd.
Xiantao, Hubei
Jining Jinhansi Environmental Material Co., Ltd.
Jining, Shandong
Shandong Huisen Papermaking Auxiliary Co., Ltd.
Shouguang, Shandong
Shandong Ruilong Environmental Technology Co., Ltd.
Jinan, Shandong
Xi’An Jinquan Chemical Additives Co., Ltd.
Xi’An, Shaanxi
Xinlanka Technology Co., Ltd.
Chengdu, Sichuan
Prices
In 2017, the price of formulated pitch-and deposit control agents (32–35% active ingredient) ranged between 30 and 50
renminbi per kilogram, equivalent to $4.44–7.41 per kilogram.
Pigment binders
With the rapid rise of coated paper and paperboard production, demand for pigment binders experienced rapid growth.
Styrene-butadiene (SB) latex is the dominant synthetic pigment binder for paper processing in China. In 2016, the
country produced 7.55 million metric tons of coated graphic paper and 13.5 million metric tons of coated white
paperboard. The total consumption of synthetic pigment binders was estimated at 1.14 million metric tons and valued at
$2.231 billion in 2017.
Carboxylated SB is widely used as pigment binder in China for its low price and better gloss. However, it is not an
environmentally friendly product because of its heavy odor and instability under lengthy exposure to light.

The use of acrylic acid and copolymers latex is very limited in China because of its high price. However, acrylics are stable
to light exposure and considered environmentally friendly. With the growing demand for high-quality paper and
paperboard, particularly food contact packaging paper, demand for acrylic acid and copolymer is expected to increase
gradually in the future.
Small quantities of polyvinyl alcohol is used as pigment binder for paper processing.
The following table shows Chinese consumption of synthetic pigment binders.

Chinese consumption of synthetic pigment binders
Average annual
volume
Carboxylated styrene-butadiene latex 960 12,480 1,849 1,034 1.5
Styrene acrylate copolymer latex 100 1,900 281 122 4.0
Polyvinyl acetate 50 440 65 48 -1.0
Polyvinyl alcohol 30 240 36 27 -2.0
Total 1,140 15,060 2,231 1,231 1.5%
Market participants
China’s major producers of synthetic pigment binders are listed in the following table.

Major Chinese producers of synthetic pigment binders—2018
Styrene acrylate Carboxylated
Company and copolymer styrene-butadiene
plant location latex latex
BASF Paper Chemical (Jiangsu) Co., Ltd.
Zhenjiang, Jiangsu X X
Cangzhou Kanghong Chemical Co., Ltd.
Cangzhou, Hebei X
Champion Chemical Co., Ltd.
Jiangyin, Jiangsu X X
Dongguan AoDa Chemicals Co., Ltd.
Dongguan, Guangdong X
Foshan Jinjia New Material Technology Co., Ltd.
Foshan, Guangdong X
Hangzhou Lanli New Materials Co., Ltd.
Jiangsu Dow SB Latex (Zhangjiagang) Co., Ltd.
Zhangjiagang, Jiangsu X
Jilin Chemical (Group) Corporation
Jilin Organic Synthesis Factory
Jilin, Jilin X
Jinxiang Science & Technology Co., Ltd.
Zaoyang, Hubei X
Nantong Tenglong Chemical Technology Co., Ltd.
Nantong, Jiangsu X
Rixin Chemical Co., Ltd.
Xinxiang, Henan X
Rizhao Kumho Jinma Chemical Co., Ltd.
Rizhao, Shandong X
Runyang Weiye Technology Co., Ltd.
Danyang, Jiangsu X X
Shanghai Gaoqiao-BASF Latex Co., Ltd.
Shanghai X X
Shanghai Xinsheng Pigment Chemical Co., Ltd.
Shanghai X
Weifang Jinshui Science & Technology Co., Ltd.
Weifang, Shandong X
Zibo Qixiang Petrochemical Industry Group Co., Ltd.
Zobo, Shandong X
Many SB latex producers are owned by major petrochemical companies like Sinopec and China National Petroleum
Corporation (CNPC), which provides them with easy access to raw materials styrene and butadiene. Shanghai Gaoqiao-
BASF Latex Co., Ltd. is the largest SB latex producer in China, followed by BASF Paper Chemical (Jiangsu) Co., Ltd. After
BASF acquired Ciba Company, BASF integrated the Ciba SB latex plant with an annual SB latex capacity of 15,000 metric
tons. In mid-2012, BASF modified the 5,000 metric ton SB latex producing line into an acrylic acid copolymer line.
Therefore, BASF’s annual capacity includes 10,000 metric tons of SB latex and 5,000 metric tons of acrylic acid copolymer.
Domestic companies Champion Chemical Co., Ltd. and Runyang Weiye Technology Co., Ltd. began producing styrene
acrylate copolymer latex over the last five years.
Prices
In 2017, the price of carboxylated SB latex (50% solids) was between 10 and 50 renminbi per kilogram, equivalent to
$1.48–7.40 per kilogram.

Coated paper production is not expected to increase rapidly in the next five years, which will hamper further growth in
consumption of pigment binders. Moreover, paper producers’ profits have been depressed to very low levels; they have no
reason to use high-cost pigmentuse
Please binders unlessChrome,
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Explorer producers
to read thisto shift their production
file.
to high-end grades that require specialty pigment binders.
Stricter government regulations on food contact applications could encourage a shift away from SB latex to acrylic acid
copolymers.
Cationic modified starch and cationic polyacrylamides are the two major types of dry-strength additives used in paper
processing in China. Although cationic starch is not the optimal choice in terms of performance, the low price makes it
attractive to users. Polyacrylamide (PAM) is the second-largest-volume paper dry-strength additive. Cationic
polyacrylamides have replaced anionic polyacrylamides in this end use.
Detailed information on Chinese consumption of dry-strength additives is shown below.
Chinese consumption of dry-strength additives for paper

Average annual
volume
Cationic starches 545.0 2,998 444.1 572.8 1.0
Polyacrylamides 45.0 1125 166.7 57.4 5.0
Otherb 8.0 136 20.1 9.3 3.0
Total 598.0 4,258.5 630.9 639.5 2.2%
b. Other includes carboxymethylcellulose.
Market participants
The following table lists China’s major producers of modified starch for the paper industry:
Major Chinese producers of modified starch for paper—2018

Company and plant location Products
Global Bio-chem Technology Group Company
Changchun, Jilin Modified starches
Guangxi State Farms Mingyang Biochemical Co., Ltd.
Nanning, Guangxi Zhuang Cationic, anionic, and amphoteric starch
Hongxin Technology Co., Ltd.
Zhongshan, Guangdong Modified starches
Jiangsu ROQUETTE Starch Co., Ltd.
Lianyungang, Jiangsu Modified starches
Papermate Science & Technology Co., Ltd.
Hangzhou, Zhejiang Modified starches
Shandong Qingzhou Chenming Modified Starches Co.,
Ltd.
Qingzhou, Shandong Cationic starches
Shandong Shouguang Juneng Golden Corn Co., Ltd.
Shouguang, Shandong Cationic starches
Shandong Yuanda Shiye Co., Ltd.
Zaozhuang, Shandong Cationic starches

Major Chinese producers of modified starch for paper—2018 (continued)
Shijiazhuang Galaxy Modified Starch Co., Ltd.
Shijiazhuang, Hebei Modified
Please use Adobe, starches or Internet Explorer to read this file.
Chrome,
Yanzhou Xilai Fine Chemical Co., Ltd.
Yanzhou, Shandong Catiionic starches
Zhejiang Yizhi Starch Technology Co., Ltd.
Hangzhou, Zhejiang Cationic and anionic starch complex, ampho-
Contact Customer Careteric starch
Zhucheng Xingmao Corn Developing Co., Ltd.
Zhucheng, Shandong Modified starches
Prices
The following table shows prices for retention and drainage aids and dry-strength additives in China.
Chinese prices for retention and drainage aids and dry-strength additives
2014 2017
Renminbi per Dollars per Renminbi per Dollars per
kilogram kilograma kilogram kilogramb
Cationic polyacrylamides 22.00-27.00 3.57-4.38 18.20-27.00 2.70-4.00
Modified starches 4.00-6.50 0.64-1.06 4.00-7.00 0.60-1.04
b. Based on an exchange rate of 6.75 renminbi per dollar.

Companies are exploring the use of amphoteric ionic PAM and carboxymethylcellulose as dry-strength additives. To
achieve better strength, cationic starch will be replaced by better-performing products like cationic PAM.
Sizes
Alkyl ketene dimer (AKD) has been the dominant paper internal size in China since 2010. Shanghai Paper Manufacturing
Company was the first paper mill to use AKD as paper size in 1989. However, the market for AKD did not take off rapidly
because of the high price of imported AKD. Domestic production began in 1996. Longkou Liaoyuan, Suzhou Tianma, and
Zhenjiang Tianyi were constantly improving AKD product quality and expanded producing capacity to decrease the
market price. This allowed AKD to dominate the market.
The use of alkenyl succinic anhydride (ASA) was not as successful even though ASA was introduced to the Chinese market
at the same time as AKD. However, it was gradually accepted in the marketplace. By 2006, AKD and ASA had dominated
90% of the graphic paper processing and 50% of packaging paper processing.
AKD sizes have gradually replaced rosin sizes since 2005. The major drivers for the trend include environmental pressure
and price increases for rosin. Aluminum sulfate has to be used when sizing with rosin-based sizes. The released sulfate
ionic is very difficult to remove from the wastewater and increases the cost of wastewater treatment. After paper mills
switched to AKD, consumption of aluminum sulfate fell by 90%.
Surface sizing has gained some industry acceptance since 2015 because of better performance over internal sizes. The
trend has somewhat negatively impacted the consumption of AKD sizes.
In 2017, domestic consumption of AKD powder was estimated at 50,000 metric tons. To improve the efficiency of AKD
size, emulsifiers are usually combined with AKD to form a 15% AKD emulsion. Compounded AKD sizes have the

advantages of promoting sizing efficiency, rapid curing, and smaller-volume consumption. The equivalent consumption of
AKD emulsions (15%) in 2017 was 510,000 metric tons.
These AKD products are not only consumed locally but also exported to the international market.
The following table shows the consumption of Chinese sizes for paper processing.
Chinese consumption of major paper sizes

Contact Customer Care (customercare@ihs.com) if you have any questions. Average annual
volume
Internal sizes
Alkyl ketene dimer (AKD) 510 3,060 453 536 1.0
(15% emulsion)
Alkenyl succinic anhydride (ASA) 11 297 44 12 2.0
Rosin (35%) 15 83 12 13 -3.0
Surface sizes 20 240 36 28 7
Total 556 3,680 545 589 1.2%
Market participants
The table below lists the major AKD suppliers in the Chinese market and their market segment.
Major Chinese suppliers of internal sizes—2017

Company and
plant location Products
Kemiira Nanjing
Nanjing, Jiangsu 10,000 metric tons of AKD and rosin annual capacity
started up at the end of 2017. The plant also produces
ASA.
Longkou Lianyuan Paper Auxiliary Co., Ltd.
Longkou, Shandong
Shandong Tongchuang Fine Chemical Co., Ltd.
Linyi, Shandong Annual capacity for AKD is believed to be 20,000 metric
tons.
Suzhou Tianma Pharma Group–Tianhe
Chemicals (Suzhou) Co., Ltd.
Suzhou, Jiangsu Annual capacity for AKD power is 30,000 metric tons.
Yanzhou Tiancheng Chemical Co., Ltd.
Yanzhou, Shandong Annual AKD capacity is 60,000 metric tons.
Zhenjiang Tianyi Chemical Industry Research
and Designing Institute Co., Ltd.
Zhenjiang, Jiangsu Annual capacity for AKD power is 10,000 metric tons.
Total
Yanzhou Tiancheng Chemical Company is China’s largest AKD producer. It began operation at a joint venture plant with
Kemira in 2010. The original plant had an annual design capacity of 10,000 metric tons. Investments since 2013 have
expanded capacity to 60,000 metric tons by 2017. Most production is exported.
Kemira invested in a new AKD manufacturing unit at the Nanjing plant five years ago; it came online at the end of 2017.
The new manufacturing line has an annual capacity of 16,000 metric tons of AKD emulsion.

As for ASA, Suzhou Tianma is the sole local producer, with an annual capacity of 1,000 metric tons. Most ASA products are
supplied by Nalco (Suzhou) Co., Ltd. and Kemira Chemical (Shanghai) Co., Ltd.
Prices Please use Adobe, Chrome, or Internet Explorer to read this file.
The following table shows market prices for sizes in China.
Chinese prices for sizes—2017

kilogram kilograma
Alkenyl succinic anhydride (100%) 25.00-30.00 3.70-4.44
Alkyl ketene dimer (15%) 4.00-7.00 0.59-1.04
Cationic rosin (35%) 4.50-6.50 0.67-0.96

Much research into AKD has been done in China, some of which is highlighted below.
• Improvements to AKD manufacturing technology. At first, local AKD producers adopted solvent technology, which
involved the use of organic solvents like toluene and phosphorus trichloride. These solvents led to pollution during the
manufacturing process. The larger domestic AKD producers have shifted to nonsolvent technology. Producers are also
exploring converting to a continuous manufacturing process instead of the more common batch process. Continuous
processing should lead to better product quality at a lower cost.
• Liquid AKD products. Sizing with powders causes the paper to slip during processing. Low-molecular-weight liquid
AKD could solve this problem.
• AKD products with high solids content. Improving the content of C18 could increase the melting point of the
product. A high melting point is good for widening the temperature range of AKD applications. At the same time, the
performance of emulsification agents has to be improved to work well with high-molecular-weight AKD.
• Other research involves improving the performance of AKD emulsions.
ASA is another important size that has good potential for wider application in China. The current obstacle for domestic
production of ASA is the shortage of supply for the internal olefins used as raw material for its synthesis. Local ASA
producers have to import internal olefins to produce ASA. In 2014, Suzhou Tianma achieved some success in
manufacturing internal olefin raw material, but the quality and properties of internal olefins still need improvement. In
addition, ASA’s field emulsion capability also needs to be improved.
Surface sizing is slowly being adopted by the paper industry because of its low cost. It is also easier to control the surface
properties of paper when surface sizes are used. Currently, various types of polymers are used for surface sizing, the most
important of which are styrene esters. Surface sizes are usually used in combination with internal sizing. As the
technology becomes more refined, surface sizing should gain wider market acceptance. Its impact on existing uses of
internal sizes is uncertain at this time.

The dyestuff market value was estimated at $280 million in 2017. Liquid dyes are widely used for paper processing. Direct
dyes are the major type of colorants for paper manufacturing.
The market value of fluorescent whitening agents (FWAs) was estimated at $90 million in 2017. The value of consumption
has been static in recent years because of lower prices. Competition is severe, which will force the closure of smaller,
uneconomic plants.

The following table provides market information on dyes and FWAs in China.
Chinese consumption of dyes and fluorescent whitening agents

Please use Adobe, Chrome, or Internet Explorer to read this file. Average annual
volume
Paper dyes 32 1280
Contact Customer Care (customercare@ihs.com) 189.6 have any questions.
if you 35.3 2.0
Fluorescent whitening agents (35%) 81 607.5 90.0 85.1 1.0
Total 113 1,888 279.6 120.5 1.3%
Market participants
In China, the most commonly used dyes in the paper industry are direct dyes and basic dyes. Tianjin Yadong Chemical and
Dyestuff Factory and Tianjin Zhongjin Chemical Co., Ltd. are representative dye suppliers to the paper industry. Both
companies have specific paper dye product ranges. Tianjin Yadong Chemical and Dyestuff Factory have 5,000 metric tons
of annual capacity for cationic liquid dye for paper dye production and 5,000 metric tons of capacity for direct scarlet.
Tianjin Zhongjin Chemical Co., Ltd.’s capacity for paper-specific dyes has reached 1,000 metric tons per year. The company
also offers basic dyes and other dyes that can be used in paper processing. Transfar Whyyon Chemical Co., Ltd. is the
leading fluorescent manufacturing company in China; its fluorescent agents dominate 90% of the Chinese paper market.
The following table lists China’s major producers of dyes, pigments, and FWAs.

Major Chinese producers of dyes, pigments, and fluorescent whitening
agents—2018
Company and Acid Basic Direct
plant location dyes dyes
dyes FWAs
Jiangsu Suzhou Dongwu Dyestuff Co., Ltd.
Suzhou, Jiangsu X
Jiangsu Suzhou Lintong Dyestuff Chemical Co., Ltd.
Suzhou, Jiangsu X
Jiangsu Wujiang Meiyan Sanyou Dyestuffs &
Chemicals Plant
Wujiang, Jiangsu X
Jiangsu Wujiang Tongluo Dyestuffs Chemicals Plant
Wujiang, Jiangsu X
Liaoning Jinlong Dyestuff Development Co., Ltd.
Jinlong, Liaoning X
Meiernuo Chemical Co., Ltd.
Wenzhou, Zhejiang X
Shandong Jining Yunhe Dyeing Co., Ltd.
Jining, Shandong X
Shandong Qilu Chemical Dye Co., Ltd.
Jining, Shandong X
Shandong Tongda Chemical Co., Ltd.
Jining, Shandong X
Shandong Yongjiu Dyestuff Chemical Co., Ltd.
Jining, Shandong X
Shandong Zhaoyuan General Chemical Plant
Zhaoyuan, Shandong X
Shanghai Jiaye Dyestuff Enterprise Co., Ltd.
Shanghai X
Shanghai Luojing Dyeing Chemical Co., Ltd.
Shanghai X
Shanghai Qingcheng Dyestuff Chemical Co., Ltd.
Shanghai X
Shanghai Tiantan Auxiliary Plant
Shanghai X X
Shuanghong Chemical Co., Ltd.
Jinhua, Zhejiang X
Taixue Dyestuff Chemical
Luoyang, Henan X X
Tianjin Sanhuan Chemical Co., Ltd.
Tianjin X X
Tianjin Tianshun Chemical Dyestuff Co., Ltd.
Tianjin X X
Tianjin Yadong Group
Tianjin X X
Tianjin Zhongjin Chemical Co., Ltd.
Tianjin X X X
Hangzhou, Zhejiang X X
Zhejiang Jin-Jiang Chemical Dyestuff Co., Ltd.
Zhejiang Runtu Co., Ltd.
Shangyu, Zhejiang X X

Prices
Most dyes used in paper are supplied in liquid form. The following table shows the average prices for dyes and FWAs in
2017.
Chinese prices for dyes and fluorescent whitening agents—2017
kilogram kilograma
Acid dyes 30-58 4.44-8.60
Basic dyes 35-65 5.18-9.63
Direct dyes 15-30 2.22-4.44
Fluorescent whitening agents (35% active 7.00-8.50 1.04-1.26
content)
Wet-strength resins
In China, the major wet-strength agents used include melamine-formaldehyde resin (MF), urea-formaldehyde resin (UF),
and polyamide-epichlorohydrin resin (PAE). MF and UF resins are still widely used for kraft paper and packaging
paperboard processing. Paperboards that are used for fruit or seafood packaging require wet strength during the shipment.
Personal and household products such as tissue and paper towels need to be wet sustainable for short time. Chinese paper
mills consumed MF and UF resins as wet strength agents until the introduction of PAE in 2005. PAE has gained wider
acceptance because of its properties and perceived environmental friendliness. In 2017, PAE has become the dominant
wet-strength resin in the paper-making industry.
The table below shows the market for wet-strength agents in China.
Chinese consumption of wet-strength additives

Average annual
volume
Polyamide-epichlorohydrin resins (12.5% solid) 90 423 62.7 120 6.0
Urea-formaldehyde resins 10 65 9.6 8 -5.0
Melamine-formaldehyde resins 50 59 8.7 48 -1.0
Total 50 59 81.0 48 -1.0%
Market participants
The table below lists the major producers for wet-strength chemical in China.

Major Chinese producers of PAE for wet strength—2018
Jinri New Material Co., Ltd.
Lanxi, Zhejiang Please use Adobe,PAE
Junneng Chemical Co., Ltd.
Foshan, Guangdong PAE and modified PAE
Qingzhou Xindi Chemical Co., ltd.
Qingzhou, Shandong PAE
Shandong Tongchuang Fine Chemical Co., Ltd.
Linyi, Shandong PAE annual capacity at 36,000 metric tons
Shouguang Desheng Paper Chemical Co., Ltd.
Shouguang, Shandong PAE
Tai’an Qineng Chemical Co., Ltd.
Tai’an, Shandong PAE
Tai’an Wanrun Chemical Co., Ltd.
Tai’an, Shandong PAE
Xiangtan Lu’an Paper Chemical Research Institute Co., Ltd.
Xiangtan, Hunan PAE
Yangzhou Yingshun Material Co., Ltd.
Yangzhou, Jiangsu PAE
Zouping Hongsheng Zaozhizhuji Co., Ltd.
Zouping, Shandong PAE
Prices
The following table shows market prices for wet-strength additives in China.
Chinese prices for wet-strength additives—2017

kilogram kilograma
Melamine-formaldehyde resins (45% solid) 7.00-9.00 1.04-1.33
Polyamide-epichlorohydrin resins (12.5% solid) 3.50-5.50 0.52-0.81
Urea-formaldehyde resins (60%) 6.00-8.00 0.97-1.30
In the China market, PAE products are sold mainly as 12.5% solid. The prices vary among different products with different
applications. The least expensive is PAE for packaging paperboard, priced at 3.5–3.7 renminbi per kilogram. PAE for tissue
processing is priced at 4.0–4.5 renminbi per kilogram, and the most expensive one is for food-contact paper with a price of
more than 5 renminbi per kilogram.

With stricter environmental regulations in China, PAE has become the dominant type of wet strength agent in larger
paper-making plants. However, the use of UF and MF resins continue at smaller plants because of their low cost. The paper
industry is very competitive, which dampens the profitability of many companies. As environmental regulations force the
closure of mid-scale and smaller paper plants that still consume MF and UF resins, the larger paper manufacturers should
be able to raise prices and improve profitability. PAE is the wet-strength resin of choice in larger paper mills.
There will be increased focus on other new types of wet-strength agents in China, including glyoxylated polyacrylamide
polymers.

Specialty coatings
Paper surface treatment chemicals in China are mainly surface coatings. These specialty coatings act as protective agents
Pleasechemicals.
from water, oil, and corrosive use Adobe, Chrome,
Polyvinyl alcoholor Internet
(PVA), Explorer to read(CMC),
carboxymethylcellulose this file.
and other synthetic
polymers, such as silicones and fluorochemicals, act as specialty functional materials for paper surface treatment. It is very
difficult to estimate the market for specialty coatings because the market is very small and fragmented. PVA and CMC are
more popular in China, but fluorochemicals and silicones have limited use because of their high cost.
The following table shows the consumption of specialty coatings in China.
Chinese consumption of specialty coatings for paper

Average annual
volume
Polyvinyl alcohol 56 560 83.0 58.9 1.0
Carboxymethylcellulose 3 36 5.3 3.2 1.5
Otherb 1 18 2.7 1.2 3.0
Total 60 614 91.0 63.2 1.1%
b. Other includes silicones and fluorochemicals.
Major participants
The following table lists China’s major producers of CMC and PVA:
Major Chinese producers of carboxymethylcellulose and polyvinyl alcohol—

2018
Company
Carboxymethylcellulose Anqiu Eagle Cellulose Co., Ltd.
Chongqing Lihong Fine Chemicals Co., Ltd.
Lude Chemical Co., Ltd.
Shandong Shenxian Shengda Chemical Co., Ltd.
Shanghai Shenguang Edible Chemicals Factory
Wealthy Chemical Industry (Suzhou) Co., Ltd.
Polyvinyl alcohol Anhui Wanwei Updated High-Tech Material
Chang Chun (Jiangsu) Chemical Co., Ltd.
Hunan Xiangwei Co., Ltd.
Shanxi Sanwei Group Co., Ltd.
Sinopec Sichuan Vinylon Works
Prices
The following table lists prices for major specialty coatings in China.
Chinese prices for specialty coatings—2017

kilogram kilograma
Carboxymethylcellulose 8.50-14.00 1.26-2.07
Polyvinyl alcohol 8.00-15.00 1.18-2.22

The production of coated paper has slowed down since 2014–15, with the growth rate averaging less than 1% per year.
With such sluggish conditions, there is very little incentive for paper companies to enter the market. Thus, the demand
for specialty coatings is not expected
Please to grow very
use Adobe, much until
Chrome, industry Explorer
or Internet profitabilitytoimproves.
read this file.
Other Asia
South Korea is the largest consumer of specialty paper chemicals in Other Asia, followed by Indonesia and India. Total
regional consumption
Contactwas estimated at
Customer about
Care $1.6 billion in 2017, with volume
(customercare@ihs.com) consumption
if you have anyexpected to increase at 0.7%
questions.
annually through 2022.
The following table shows the value of consumption for specialty paper chemicals in Other Asia.
Other Asian consumption of specialty paper chemicals—2017

South Rest of
India Indonesia Korea Taiwan Thailand Other Asiaa Total
Pulp and fiber treatment
Deinking agents 5.0 4.0 8.4 2.9 3.1 4.2 27.5
Pulping specialties 1.6 6.9 0.6 0.4 1.0 0.6 11.1
Bleaching specialties 0.7 0.5 1.1 0.4 0.4 0.5 3.6
Processing aids
Defoamers/deaerators 9.1 8.8 12.1 3.5 4.2 5.2 42.8
Retention and drainage aids 7.0 6.8 9.3 2.7 3.2 4.0 32.9
Biocides 6.9 6.7 9.2 2.6 3.2 3.9 32.5
Pitch-control agents 5.8 4.6 9.6 3.3 3.6 4.8 31.8
Dry-strength additives 84.7 82.7 113.4 32.6 38.9 48.3 400.6
Pigment binders/coatings 74.0 72.3 99.0 28.5 34.0 42.2 350.0
Specialty coatings 61.5 60.0 82.3 23.7 28.2 35.0 290.7
Sizes 48.5 47.9 77.4 15.8 21.6 22.0 233.4
Dyes, pigments, and fluorescent whitening agents 17.7 17.3 23.7 6.8 8.1 10.1 83.8
Wet-strength resins 1.7 10.8 7.4 2.8 1.4 6.1 30.3
Total 324.2 329.4 453.6 126.0 150.9 186.8 1,570.9
Average annual growth rate
(percent)
2017–22 1.1 1.0 0.1 -0.9 1.7 1.2 0.7%
a. Rest of other Asia includes Bangladesh, Malaysia, Pakistan, Philippines, and Vietnam.
Demand for paper chemicals by country depends on
• The pulp and paper production portfolio in each country
• Individual situations influencing unit consumption of chemicals such as
• Wastepaper recycling
• Wastepaper deinking
• Environmental quality regulations and/or concerns, particularly about waste effluents
• Type of paper and paperboard being produced, such as coated paper, tissue paper, kraft paper
• Type of papermaking process, either acidic, neutral, or alkaline

There are some common features in the paper chemicals industry in Other Asia.
• Wastepaper is used as an important pulp source in all of these countries. The percentage of wastepaper that is deinked
continues to increase. Thus, consumption of deinking agents is growing.
• Dry-strength additives, pigment binders, sizes, and coating specialties are the major paper chemicals in terms of dollar
value.
• Control of foam and slime

Contact is becoming
Customer Caremore important in all countries because
(customercare@ihs.com) of have
if you environmental concerns. Recycling of
any questions.
water has gained importance. The need for defoamers and slimicides is growing and substantial amounts are being
imported.
Oceania
This region covers Australia and New Zealand. Estimated consumption of paper chemicals in 2017 is shown below.
Oceanian consumption of specialty paper chemicals—2017a

Pulping specialties 4.5
Deinking agents 1.8
Bleaching specialties 0.2
Processing aids
Defoamers/deaerators 4.2
Retention and drainage aids 3.2
Biocides 3.2
Pitch-control agents 2.1
Dry-strength additives 39.0
Pigment binders/coatings 34.1
Specialty coatings 28.3
Sizes 17.5
Dyes, pigments and fluorescent whitening agents 8.2
Wet-strength resins 4.3
Total 150.6
Average annual growth rate
(percent)
2017–22 -0.8%
a. Australia and New Zealand.
The consumption value of paper chemicals was estimated at $151 million in 2017, with volume consumption projected to
decrease at 0.8% annually through 2022.

Revisions
IHS Markit Customer Care

CustomerCare@ihsmarkit.com
Americas: +1 800 IHS CARE (+1 800 447 2273)
Europe, Middle East, and Africa: +44 (0) 1344 328 300
Asia and the Pacific Rim: +604 291 3600
Disclaimer
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names contained in this report that are subject to license. Opinions, statements, estimates, and projections in this report (including other media) are solely those of
the individual author(s) at the time of writing and do not necessarily reflect the opinions of IHS Markit. Neither IHS Markit nor the author(s) has any obligation to up-
date this report in the event that any content, opinion, statement, estimate, or projection (collectively, “information”) changes or subsequently becomes inaccurate.
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Yoshio Inoguchi Specialty Chemicals Update Program

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The specialty paper chemicals

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• Pulp and ﬁber treatment

World consumption of specialty paper chemicals—2017

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Central and South

Total = $15.2 billion

Source: IHS Markit © 2018 IHS Markit

World consumption of specialty paper chemicals by product class—2017

Pulp and fiber

Total = $15.2 billion

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Other Asia and

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World consumption of processing aids for paper and board—2017

Central and South Japan

Other Asia and

Total = $2.2 billion

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The largest suppliers

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The global paper industry—2016a

World production of paper and paperboard—2016

Central and South

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