Energy costs and imports squeeze Romania’s paper industry despite €200 million investment

Packaging demand recovers, but domestic paper output falls

Romania’s paper and board industry is losing market ground despite more than €200 million of investment over the past two to three years, as high energy costs and competition from imported products pressure local mills. According to Economica.net, the divergence is clearest in packaging: demand for corrugated board has begun to stabilize, while domestic production of the paper used to manufacture it is declining.

The corrugated-board market grew by about 0.5% in the first half of 2026 to 235,192 tonnes, although turnover slipped slightly to approximately €235 million. Volumes had fallen by around 2% in the first quarter before demand recovered in the second. Domestic production of paper for corrugated board, however, dropped by more than 6% to 240,277 tonnes over the same six-month period.

In 2025, the corrugated-board market had contracted by about 1.4% to 460,957 tonnes, while the market for corrugated-case material increased by roughly 1% to 494,540 tonnes. The reversal in domestic paper output during 2026 suggests that recovering packaging demand may increasingly be supplied by foreign mills rather than Romanian producers.

Energy and recycled fibre determine competitiveness

ROMPAP president Paul-Henri Kohler told Economica.net that energy represents approximately 25–30% of production costs, depending on the mill and period, and can rise toward 35%. Paper manufacturing is energy-intensive, and price volatility makes production planning and investment decisions more difficult.

Access to recycled raw material is another constraint. About 94% of the input used to produce paper for corrugated board comes from recovered paper and board. Across Romanian paper production, more than 95% of the fibre used is recycled. Yet over 30% of the recovered material collected in Romania is exported despite the availability of domestic recycling capacity.

Recovered-paper exports increased from approximately 169,000 tonnes in 2022 to 250,000 tonnes in 2025. Turkey is among the main buyers. Romanian mills therefore face a double pressure: locally collected fibre leaves the country, while finished paper returns to compete in a standardized, transportable product category where price is decisive.

Turkish capacity adds pressure to a stagnant European market

Kohler said new capacity in Europe and Turkey is seeking outlets in a stagnant European market, making nearby Romania an attractive destination. Turkey applies an $87-per-tonne protective duty on imports of packaging paper, equivalent to about 20% of the product’s value, and also controls recovered-paper exports to secure raw material for its mills.

Romanian producers, by contrast, compete with imports made under different energy costs, environmental obligations and domestic-market policies. Local corrugated board and packaging production still covers more than 90% of Romanian demand, and the segment remains the industry’s main engine. Tissue is the second pillar, with annual capacity exceeding 185,000 tonnes; its 2025 turnover remained near 1.5 billion lei despite a slight decline in activity.

Cost pressure can reach packaged goods

The industry’s base has narrowed substantially: Romania no longer produces pulp, and more than 40 paper and board grades, including newsprint and writing and printing paper, have disappeared from local production. This leaves packaging and tissue as the principal remaining segments.

Kohler warned that part of higher manufacturing costs inevitably passes through the supply chain into packaged-goods prices. A continued loss of local competitiveness would also increase reliance on imports and exposure to external supply shocks. ROMPAP is seeking government action on energy, access to recovered fibre and recycling, while arguing for comparable and predictable competitive conditions rather than protectionism.