The paper industry promised them happiness at the end of last year when it managed to rise above even 2019 turnover levels after the complicated journey caused by the covid pandemic. But his joy was short-lived, ever since. inflationary scenario supported by The war in Ukraine had a brutal impact on the industry’s costs, which rose over 200%. because energy and raw materials continue to rise. The result, how could it be otherwise, has been a strong slowdown in the recovery path, which, in the case of companies in the province of Alicante, mostly focused on the hotel industry, will be exacerbated by the collapse of sales. the arrival of autumn.
The national production of the industry increased by 6.5% last year, following the decline in 2020 due to the coronavirus, and produced 6.7 million tons of paper and 1.8 million tons of pulp. allowed to exceed pre-pandemic numbers. Turnover also increased by 30.84% in this case, reaching 5,209 million Euros. These are predictable trends for the paper industry in the Community of Valencia, which accounts for 3.5% of production.
However, the situation worsened in 2022, mainly due to the Russian invasion of Ukraine and the general increase in prices. This is recognized by the Spanish Association of Pulp, Paper and Board Producers (Aspapel), which keeps nearly all its factories open despite the difficult and unusual situation, highlighting the industry’s strength as a core industry during the health crisis. , currently suffering from the onslaught of energy and raw materials as well as freight increase.. The result was a “slowdown” in recovery, moreover in the context of uncertainty about what might happen in the near future.
The impact of these cost increases is also felt by companies in the province of Alicante, in some cases over 200%. In the field of production, Hinojosa, owner of Papelera de la Alquería in l’Alqueria d’Asnar, stands out with its cardboard production facility. As the company explains, the increase in both gas and electricity is affecting them completely. However, thanks to the investments made in sustainable energy sources and waste recovery in recent years, To be able to continue the activity without jeopardizing business continuity and also providing services to customers. In any case, the same sources also acknowledge that this unpredictable state of volatility and uncertainty significantly complicates management and affects the margins of the value chain.
The same is true of the Alicante-based Saica group. had to stop three of the four cogeneration plants. Due to the strong increase in gas prices in Zaragoza. However, the firm’s managing director, Enrique de Yraolagoitial, describes the Government’s decision to allow such a facility to benefit from the so-called Iberian exemption as positive, which will “allow us to reopen our factories and regain lost competitiveness”, points.
Much of the Alicante paper industry is focused on the professional hospitality industry.allowed companies to take advantage of the great appeal of bars and restaurants this summer. But the panorama will change radically after that. This is expressed by Belén González, Mapelor’s manager in Beniarrés, and said two years after the pandemic, “people are on vacation without looking any further, which will allow us to increase turnover to the last 12.5 million”. the year we stayed at 8.5». In any case, the figures are misleading due to runaway costs. “At our company – emphasizes – the finished product has become between 60% and 70% more expensive, but the energy is going through the roof and the raw material has tripled”.
And everything is getting worse. Mapelor’s chairman is not shy to point out that a major recession is imminent and that activity in the hotel industry will decline. «There will be less demand, and not only that, because some items, such as table linens, will no longer be necessary, because tables can always be cleaned. And all this is in the scenario of increased costs that customers do not want to undertake, so we have no choice but to reduce margins.
Practicel from Gaianes is in a very similar situation and had a good summer with its year-end invoice estimates of 20m euros, which manager Manuel Orero did not hesitate to call false. “There – it is emphasized – is reflected in the rise in prices that we have to face. Companies that supply us with paper should excuse themselves in gas.shortages of electricity and supplies from South America and Asia. Fortunately, demand has worked well in recent months because otherwise we would be on the ropes ».
Orero doesn’t want to stop being optimistic “because people are out here,” but acknowledges that inflation will eventually affect consumption and costs will continue to rise rapidly. In fact, his company had no choice but to pass on these price increases because, as he put it, «if you don’t impress you will end up ruined».
Rising prices pull publishers in strings
The increase in costs affects not only the paper industry, but also all industries that depend heavily on this raw material. This is the case with publishers who fear a drop in book sales if they forego these increases.
An example of this is Ediciones Azorín, which specializes in writers from Alicante and Murcia. Publisher Javier Pérez explains that the rise in paper prices has led to a 30% increase in the cost of producing books, so “we may see readers stop buying because we’re talking about a must-have product.
According to Pérez, in their case, at least for the time being, they bear the price of the works they publish, “because we work in a complex industry, such as poetry, that in itself has no significant appeal to the general public, so we don’t want to take any risks or make it more complicated.”
The person in charge of Ediciones Azorín acknowledges that there are problems such as the increase in energy and raw materials. This is due to the increasing consumption of this product, which affects the rise in paper prices, but at the same time. “As plastic bags are banned, there is, among other things, more demand. The same thing should not have gone so fast in this regard,” he emphasizes.
He insists that the situation is complicated to the point that some publishers have blindly shut it down. “I don’t think about closing it yet, but I still have to think about it at some point,” he warns.