Sofidel

1. Sustainability in pulp and paper has moved from compliance to competitiveness. From your perspective, which sustainability metrics now directly influence customer acquisition, pricing power, or long-term contracts?

In the tissue paper industry, retailers’ expectations increasingly converge around a few key priorities: decarbonization, combating deforestation, and circular economy principles understood, in this last case, as all actions aimed at optimizing packaging use, both in design and in material selection. Today, customers expect to entrust their supply needs to partners who demonstrate both a sufficient level of ambition and a proven ability to honor publicly stated commitments, with transition plans aligned to declared objectives. Another implicit requirement is the ability to report accurately and comprehensively on a growing set of environmental and social indicators. The volume of information that customers expect companies to provide continues to rise, despite the company’s efforts to publish dedicated sustainability reports. This makes it essential to have a very robust internal system for data collection and processing.

2. Energy and water intensity remain critical pressure points. Which process-level innovations - mechanical, chemical, or digital - have delivered the most measurable efficiency gains in your operations over the past few years?

In recent years, our industry has gone through a profound transformation. What we are witnessing is not simply the upgrade of individual machines, but a rethinking of the entire production chain. And it is this integrated transformation that is allowing us to make real progress in energy efficiency, operational excellence, and sustainability.

On the mechanical side, we have made significant advancements, particularly in the drying phase, historically the largest energy bottleneck. Technologies such as Steel Yankee Dryers, Shoe Press systems, and hybrid platforms like Advantage NTT are raising performance standards, reducing energy consumption, and redefining the way we produce high quality tissue. At the same time, we are strengthening heat recovery systems and exploring new solutions, from superheated steam to advanced heat pump technologies. Digitalization has also entered a new phase. Digital twins, AI based controls, and real time optimization tools are making our mills more stable, more predictable, and more efficient than ever before.  All these innovations point in the same direction: building a production model that is more efficient, more resilient, and more sustainable.

3. Carbon reduction strategies often require significant capex. How do you evaluate the ROI of decarbonization initiatives such as biomass boilers, electrification, or waste heat recovery in today’s volatile market conditions?

Technologies are evolving rapidly, investments are becoming more costly, and payback times are getting longer. All of this is happening in an institutional environment that is itself shifting, where priorities and objectives may be redefined and where investments face a growing risk of obsolescence. In this context, Sofidel is moving forward with a strategy grounded in pragmatism and a practical approach: a multi option strategy that considers the best available technologies, as well as the infrastructure and incentive frameworks in each country where we operate. At this stage, we believe this is the most appropriate way forward. Which ultimately means embracing an approach based on the principle of “technological neutrality”.

4. Process optimization is increasingly data-driven. How are advanced analytics, AI, or digital twins being used to improve yield, reduce downtime, and minimize raw material waste?

For many years at Sofidel, we have invested in a unified system for collecting and managing data across all our production lines. This allows us to turn the vast amount of information generated every day into clear, useful dashboards that support timely and informed decision making. Today, thanks to new computing capabilities and advanced data mining techniques, this wealth of information is becoming even more strategic in driving efficiency, quality, and operational excellence. Our vision of digitalization goes beyond production technologies and includes the enabling infrastructure behind them: communication networks, data centers, and virtual environments capable of hosting all the mission critical applications used in our industrial operations. We chose an innovative model that brings most of the software used in our paper mills and converting plants into site level data centers rather than installing it directly on individual machines. This approach reduces complexity, enhances security, and ensures greater operational continuity. At the moment, this architecture covers all our European facilities and 90% of our sites in the United States. Our goal is to achieve full global integration, including the most recent acquisitions. This infrastructure is a key enabler for the next phase of our digital evolution.

5. Water stewardship is under growing regulatory and public scrutiny. How does Sofidel position itself as a responsible industry leader while maintaining production scale?

Sofidel has a long standing commitment to responsible water management. We pursue this with a consistent, integrated approach that combines technological investment, strong process controls, and dedicated training for our people. Across all our facilities, we use advanced wastewater treatment systems, balancing chemical physical and biological processes based on each site's needs. At the same time, we have introduced measures that allow us to use water far more efficiently: from internal reuse where fresh water was once required, to dry seal pumping systems, to the capture and use of rainwater. These efforts are supported by monitoring systems that immediately flag any abnormal consumption and enable rapid intervention. Among our most significant projects, I would highlight our Waste Water Reuse plant at the Soffass Cartiera Giuseppe Lazzareschi mill in Porcari, in Italy, which, through a three stage treatment system – biological processes, ultrafiltration, and reverse osmosis – allows us to recover and reuse around 230,000 m³ of water each year. Another key initiative is the rainwater harvesting system installed at our Baglan facility in the United Kingdom, covering more than 73,000 m² and reducing consumption by about 65,000 m³ annually.

6. Chemical usage optimization is key to both sustainability and cost control. How are modern additives, enzyme technologies, or alternative chemistries reshaping pulp processing efficiency?

Over the years there have been significant advancements. Chemical additives have evolved toward solutions that are safer for both people and the environment. In some cases – such as enzymatic technologies – they have also enhanced pulp performance and enabled reductions in energy consumption. Today, the new frontier is represented by polymers: increasingly sophisticated technologies, including those of biological origin, that support the transition toward fibers with a lower environmental impact. 

7. Supply chain transparency is becoming a decisive factor for global brands. How are you strengthening responsible sourcing and traceability across your fiber supply chain?

Sofidel has long implemented rigorous policies for sourcing forest-based raw materials, prioritizing suppliers that comply with the main forest stewardship standards – most notably FSC® – and PEFC. This approach has allowed us to build long term supply relationships based on the continuous exchange of information throughout the value chain, strengthening both the quantity and quality of transparency toward our customers and consumers. These are more than commercial relationships, they are true partnerships. This enables us to maintain consistently high levels of supply security, both in terms of volume and quality, while keeping the use of spot purchases occasional and limited. The introduction in recent years of regulations such as the EUDR (EU Deforestation Regulation) and the CSDDD (Corporate Sustainability Due Diligence Directive), despite their implementation complexity, confirms that we are moving in the right direction.

8. Regulatory frameworks continue to tighten globally. How do you future-proof your operations while navigating evolving environmental regulations across different regions?

I believe that the ecological transition represents the challenge of all challenges for the paper industry. Reducing the impact that our processes have on natural capital is not only essential for environmental sustainability, but also for competitiveness and economic sustainability especially in a sector that is becoming increasingly global. This awareness has led us, over time, to make consistent investments in technological and process innovation, helping us set and meet goals in line with the international standards currently in place. And we intend to continue on this path.

9. Innovation often defines industry leaders. What role does innovation - whether technological, organizational, or strategic - play in maintaining Sofidel’s long-term growth trajectory?

A fundamental role. Much of our development has been driven by a forward looking mindset and a strong focus on process and product innovation. This approach has translated, for example, into consistent investments in production assets that are, on average, more advanced and higher performing than the industry standard. More recently, we created a new department dedicated to Artificial Intelligence, established to maximize the contribution this new technological evolution can bring to our Group. This new unit represents a strategic investment to evolve from a traditional Industry 4.0 approach toward a truly AI driven production model. These are just a few examples of a mindset we work hard to cultivate every day.

10. Automation and Industry 4.0 adoption vary widely across regions. What barriers still limit full-scale digital transformation in pulp and paper manufacturing?

We all know the obstacles: long investment cycles, fragmented data, uneven infrastructure, limited skills, cultural resistance, and uncertain ROI. But digital transformation isn’t just about adopting new tools, it’s about connecting flows, systems, and decisions across the entire organization.

In production especially, meaningful progress requires end-to-end processes. And the companies that invest early in unified systems, talent, and a secure digital backbone will be the ones to truly shape the next decade of change.

11. Talent and skills are often overlooked in sustainability discussions. How important is workforce upskilling in achieving long-term efficiency and environmental targets?

I’ve always believed that continuous learning is essential for keeping skills up to date, retaining talent, and keeping people motivated. Today – amid a dual transition and in light of the expectations of younger generations – this is even more critical. And I believe companies are increasingly aware of it. People are the real competitive advantage of any organization: success depends on training, social responsibility, and the development of critical thinking, a fundamental capability for driving innovation.

12. Customer expectations are evolving rapidly. How do sustainability-driven demands from FMCG, packaging, and tissue brands influence product development and production planning?

We work to deliver sustainable innovation through a strategic approach that puts customers and consumers at the center. This means that their needs play a major role in the development of our products and in the way we manage our processes, from sourcing to manufacturing. Since sustainability is integrated from product design, through production (including raw material procurement), to packaging, distribution, and beyond, there is no stage in which the perspective of customers and consumers is not treated as a key input, essential also for driving innovation.

A concrete example is the effort we’ve dedicated to offering the market products with more sustainable packaging. This has led us, for instance, to set an ambitious target to reduce the use of virgin plastic and to introduce paper-based packaging solutions.

13. Looking ahead to the next decade, which emerging technologies or process shifts do you believe will have the greatest impact on making pulp and paper manufacturing both more sustainable and economically resilient?

For the paper industry, the energy transition is without question the defining challenge of the next decade. And in this context, three areas will be decisive. We’ve already mentioned the first two: digitalization – including AI, machine learning, and digital twins – and the evolution of drying technologies. The third concerns the work underway on next generation fibers, materials, and chemical solutions.