Three Century-Old Paper Mills Shut Down Globally in 15 Days—This Time, A 150-Year-Old German Mill!

On February 28, 2025, Marusumi Paper Co., Ltd. officially filed for civil rehabilitation proceedings under Japanese law, marking the company's inability to continue operations amid severe industry challenges. Headquartered in Shikokuchuo City, Ehime Prefecture, Japan, the company reported liabilities of approximately 59 billion yen (about 2.85 billion RMB), making it one of the largest bankruptcy cases in Japan's paper industry in recent years. 

With a history spanning over a century, Marusumi Paper traces its origins back to 1919, starting with the production of handmade Japanese paper. Over time, the company expanded its production to include various types of paper, such as newsprint, printing and writing paper, business communication paper, packaging paper, and kraft pulp, as well as other publishing materials, with an annual production capacity of about 700,000 tons. Once a leading and renowned paper manufacturer, Marusumi Paper operated two large factories in its hometown of Shikokuchuo City, which were long-standing pillars of the local industry.

On March 6, the well-known paper manufacturer Kabel Pulp & Paper Plant (KPPP) in Hagen also filed for bankruptcy. This historic factory, which had been producing paper since 1896, recently saw its production activities nearly come to a halt due to a severe lack of orders, leading to the implementation of reduced working hours. The future of the company and the fate of its 420 employees remain uncertain. For the city of Hagen, KPPP is as integral as Lake Hengstey or the Osthaus Museum, having been a cornerstone of the local economy for nearly 130 years, despite undergoing several name changes over its long history.

Recently, the historic Koehler Paperboard Co., Ltd. announced its bankruptcy. This traditional enterprise, with a history of over 150 years, had long been dedicated to producing high-quality paperboard for the packaging and gaming industries using various raw materials such as waste paper, grass clippings, and wood pulp. Employing 90 people, the company had an annual production capacity of 48,000 tons of paperboard. Its products were not only supplied to the German domestic market but also exported internationally, earning a strong reputation in the industry. The papermaking history of Koehler dates back to the Middle Ages. As early as 1490 to 1705, the Bemgut Reithaus Paper Products Company produced top-grade paper in this region, primarily supplying printing houses in Strasbourg and distributors in northern Germany, the Netherlands, and Belgium.

However, like many others in the paper industry, Koehler Paperboard Co., Ltd., an energy-intensive enterprise, had struggled for years with energy prices significantly higher than international standards. Compounding the issue, the overall economic downturn led to a sharp decline in demand for packaging materials, causing a drastic deterioration in the company's order situation and ultimately pushing it into financial distress.

Currently, Dr. André Berber of BSK Law Firm has been appointed by the court as the provisional insolvency administrator. On Tuesday, Dr. Berber visited the company's site in Gengenbach, met with the management, inspected the company's operations, and conducted a preliminary assessment of the current situation. Fortunately, the company's business operations are still ongoing. The wages and salaries of the 90 employees will be secured through insolvency benefits, ensuring their basic livelihoods. In the coming weeks, lawyers and restructuring experts from BSK Law Firm (which specializes in providing restructuring services for medium-sized enterprises) will work on developing solutions to guide this historic company toward a stable and sustainable future.

Dr. André Berber, the provisional insolvency administrator, stated: "Today's on-site visit to Koehler Paperboard has given me a preliminary understanding of the company's situation. I am confident that we can find a solution that benefits all parties involved. Koehler Paperboard Co., Ltd. has a solid corporate structure and is still operating normally; the employees' wages and salaries have also been secured through pre-financed insolvency benefits. We have already begun discussions with key stakeholders crucial for the sustainable management of this crisis."

The challenges faced by Koehler Paperboard Co., Ltd. primarily stem from its energy costs, which are significantly higher than international standards, and the ongoing decline in demand for packaging materials. These adverse factors have placed immense pressure on the company's economic operations, leading to a reduction in orders. The initiation of insolvency proceedings aims to seek a long-term solution for the company. Nevertheless, restructuring lawyer Basil Spähr remains optimistic about the company's future.

He noted: "The order situation for the next few months remains stable, and all customers will continue to receive their goods as scheduled. This provides a solid foundation for the company's successful restructuring." Whether Koehler Paperboard Co., Ltd. will remain independent or require the introduction of investors remains to be seen.

Behind these successive bankruptcy events, we witness not only the fall of several century-old enterprises but also a microcosm of a traditional industry undergoing profound transformation amid the waves of global economic change. The sighs of early spring 2025, like the chilly winds of a lingering cold season, herald the deepening winter of the paper industry. The persistently high energy prices, increasing environmental pressures, and the structural impact of the digital wave on traditional paper demand have collectively become the final straw that broke these long-established companies.

The massive debt of Marusumi Paper, the order drought at Kabel Pulp & Paper Plant, and the cost struggles of Koehler Paperboard Co., Ltd. all point to the same core issue: in the new economic environment, the traditional business model of the paper industry is facing unprecedented challenges. These bankruptcy cases are not isolated incidents; they are like scattered pieces on the chessboard of our times, warning the entire industry—and even the broader traditional manufacturing sector—that deep reflection and proactive adaptation to change are essential to finding new vitality in the tide of the era. Otherwise, the dust of history will mercilessly bury those who fail to turn in time.