Voith Paper sees four trends in its paper markets.
- Accelerated decline for graphic paper machines due to increasing digitalization
- Rise of new market segment: "medium-size" board and packaging machines, especially in Asia
- Measurement package launched to adapt to new market situation
- Plans to cut approxmately 710 jobs at German and Austrian locations
On the one hand, the ongoing digitalization of everyday life through tablets like the iPad and the ensuing changes in consumer behavior is faster than expected having a negative impact on the demand for so-called graphic papers. These paper grades are, for example, used for printing newspapers or magazines. As a result of this continued development, Voith Paper has experienced a noticeable slow-down in business in this fiscal year and a deterioration of its medium to long-term perspectives for graphic paper machines.
On the other hand, the demand for paper machines will continue to grow in the medium and long term, especially in Asia. These countries are, however, increasingly asking for medium-size plants, particularly for board and packaging papers, which are less investment-intensive. In this newly arising segment, Voith has to fight for a market share against stiff competition from local suppliers. Due to the ensuing cost pressure, these machines are already largely produced locally. The fast-growing demand in this new segment therefore results in a lower share in value creation and sales in and from Europe.
The company is adapting to these developments with a comprehensive catalogue of measures. The German and Austrian Voith Paper locations, which mainly develop, design and produce large plants with high investment costs, are particularly affected by the market changes and are to be streamlined. Wherever it appears feasible, it is planned to amalgamate and pool production and engineering capacities from several locations, in order to adapt the resources in the German-speaking area to the new market situation.
