The pulp and paper industry is constantly transforming, marked by both the economic challenges stemming from fluctuations in international prices and a firm commitment to sustainability and technological specialization. Ence EnergÃa y Celulosa , one of Spain's leading companies in the sector, is facing a period of change in its strategy and business model, in parallel with the technological advances that are revolutionizing the manufacture of cellulosic fibers and biomaterials worldwide.
The last few months have been particularly intense for the sector, which has seen pulp prices fall in international markets and global competition push companies to innovate and diversify to maintain their competitiveness . Faced with this scenario, the industry is responding with pioneering projects that seek to reduce environmental impact, improve efficiency, and focus on higher value-added products.
Financial losses and strategic transformation at Ence
Ence closed the first half of the year with net losses of €6,9 million , in contrast to the positive results obtained in the previous year. This situation is closely linked to the drop in pulp prices and a context of tariff uncertainty that has affected the entire industry. The company reported revenue of €379,2 million to the CNMV (Spanish National Securities Market Commission), representing a 15,5% decrease compared to the previous period.
Despite the challenging environment, Ence has strengthened its commitment to specialty pulps , which now account for 32% of its sales volume, compared to 23% a year ago. The company expects this segment to exceed 60% by 2028, supported by the commissioning of a new fluff pulp production line , geared towards absorbent hygiene products. This innovation is expected to position the company as the only European producer of fluff made from short fibers, a more efficient and sustainable alternative to traditional long fibers.
In parallel, the company has achieved a significant operational improvement by reducing the average cost per ton of pulp ( cash cost ) to 488 euros, that is, 22 euros less per ton compared to the previous quarter, thanks to energy optimization and efficiency in its Navia and Pontevedra plants.
Evolution of sales, revenues and prospects
During the second quarter, Ence achieved revenues of €192 million , 3% higher than in the previous quarter, supported by increased sales volume in both pulp (243.000 tons, up 12%) and renewable energy (303 GWh, up 9%). However , gross operating profit (EBITDA) fell to €58 million, a 42,5% year-on-year decrease.
Net financial debt stood at €362,5 million at the end of June, distributed between the pulp and renewables divisions. The company also carried out sales of Energy Saving Certificates (EACs) , totaling 252 million kWh equivalent and generating net proceeds of €40 million.
The average price of short fiber (BHKP) in Europe stood at $1.177 per ton between April and June, falling to $1.060 in July, a figure that no longer covers costs for part of the industry. Ence is confident that, after the restocking process and once regulatory uncertainties are resolved , demand and prices will gradually recover.
Commitment to renewable energy and decarbonization
Ence's strategy is not limited to pulp alone. The company continues to strengthen its renewables division , with projects in biomethane and renewable industrial heat. By 2030, it expects to reach an annual production of 1 TWh of biomethane and 2 TWh of thermal energy , making significant contributions to EBITDA.
Furthermore, the company is currently modernizing its Pontevedra biofactory , aiming to maximize efficiency, diversify its product range, and reinforce its commitment to generating over 60% of its sales from specialty pulps in the coming years. This transformation is supported by investments in technology that enable a substantial reduction in energy costs and greater environmental sustainability.
Global innovation: the regenerated cellulose fiber plant in China
While the European sector is moving towards specialization and efficiency, examples of disruptive innovation are emerging internationally, such as the recent commissioning of the first industrial cellulose fiber plant using ionic liquids in Henan, China. This pioneering facility achieves an annual production of 1.000 tons using a technology free of toxic solvents and with a solvent recovery rate exceeding 99%.
The system developed by the Chinese Institute of Process Engineering represents a revolution for the textile industry and the circular economy: the production of regenerated fibers is carried out without emissions or toxic waste, reducing the carbon footprint by 5.000 tons of COâ‚‚ each year. This translates into a safer, more stable , and more environmentally friendly process that meets international standards for textile quality and strength.
This breakthrough, the result of a decade of R&D investment, demonstrates that technological innovation is key to transforming traditional, resource-intensive industries. The Chinese plant represents a replicable model for other markets seeking to decarbonize the textile sector and can coexist with other European initiatives focused on more sustainable cellulose fibers.
One of the major advantages of ionic liquid technology is its ability to eliminate the use of hazardous compounds and facilitate advanced textile recycling . Furthermore, it enables more efficient and decentralized production , integrating renewable energy sources and promoting the transition to more eco-efficient materials in fashion, packaging, and other industrial applications.
The pulp industry is emerging as a key player in the transition to a low-carbon industry , combining innovation, sustainability and adaptability to the sector's global challenges.
