Paper shortage puts graphic industry at risk, warns Intergraf

The European association Intergraf warns that the current paper crisis will have serious economic repercussions on many sectors using printed products.

The graphic industry supports all economic activities with their products, whether it is information, entertainment, education, advertising or packaging. Print plays a huge role in everyday life, so much so that it is often overlooked. "This support is now threatened by the current tensions in the supply chain." beatrice Klose, secretary general of Intergraf, the European printing industry association, warns.

Over the past two years, with the health measures due to covid, graphic products have seen a sharp decline. While demand is now almost back to pre-pandemic levels, the industry is now faced with soaring prices and raw material supply issues.

"The strike in progress in some Nordic paper mills (from the UPM Group eDITOR'S NOTE) worsens the situation, especially for paper grades such as LWC (light weight coated) and MWC (medium weight coated) paper." In some countries, nearly half of this paper for heatset printing comes from a single manufacturer, Intergraf estimates.

"Printers' inventories will not last until the strike is resolved and printers will be forced to tell their customers of their inability to fulfill orders."

By mid-February, 40% of the paper needed will be missing

Intergraf is getting very worrying feedback from its members. "The situation regarding paper deliveries is critical to the point that some customers are forced to go digital," a major heatset printer reported to the association. For another company specializing in large format, "we are losing loyal print buyers, catalog users, due to production costs and paper shortages. There's a big risk that those print buyers won't come back. That puts our industry at risk and we will suffer irreparable damage."

Based on feedback from the field, the association estimates that by mid-February 40% of the paper needed will not be available.

"The inability to print will result in significant financial losses not only to the printing company, but also to the end customer. This will lead to foreseeable shortages of many printed consumer goods and some products, including food and medical supplies, that cannot be brought to market due to a lack of packaging."

Intergraf therefore calls on the paper industry to establish a collaborative approach and a transparent discussion on the current and future supply of graphic paper in Europe.

The association also calls on the European and national authorities to take the current situation seriously and to ensure an adequate supply of raw materials (fresh and recycled fibers) to guarantee the continued production of essential goods such as packaging, newspapers, magazines and books.

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