İzmit-headquartered Essel Pulp and Paper Industry can reel off a list of achievements … 100% pure cellulose and recycled jumbo rolls, Türkiye’s widest and highest capacity tissue PM, fully closed-loop automation, production targets exceeded, and exports to 60 countries. TWM Senior Editor Helen Morris spoke to Bülent Can, Converting Manager.
“From the outset until today, we are committed to using the most efficient and advanced technology,” says Bülent Can, Converting Manager of Türkiye’s Essel Pulp and Paper Industry. It has been a key strategy for the business since Co-Owners Cumhur Esen and Abdurrahman Esen entered the tissue market in 2011. Most recently, Essel Pulp and Paper Industry has invested in a Toscotec-supplied AHEAD 2.2L which came onstream as PM3 at its site in Osmaniye in 2021. “We chose Toscotec due to the company’s strong expertise and comprehensive support services,” Can adds. “And, as a result, we have commissioned the country’s widest and highest capacity tissue paper machine. We produce all types of tissue paper semi-products, and PM3 also reached a milestone after the line exceeded its guaranteed production target of 270tpd in 2022, reaching 290.5tpd.”
Geographical location was key for this investment and Can says the company decided to invest in this region – located in the south of Türkiye near Syria’s border, and the Turkish hub of Mersin – because a substantial section of its target market is the Middle East, Iraq, and Syria.
Two Futura converting lines – launched simultaneously with PM3 at the facilities in Çaycuma and Osmaniye – are one of the company’s “key investments”, geared towards end consumers: “The line operating in conjunction with PM3 has significantly boosted production there,” he says. “Both of Essel’s factories are among the few in Türkiye that can truly operate in a fully closed-loop production system.”
Digital automation is also advancing. Can says the Futura machines, for example, feature a fully automated process, from packaging to automatic stretch wrapping. “Products are packaged and stacked without any manual intervention, and we also have a software system in place that allows us to track all production processes, from semi-finished to finished products. This means we can monitor our products from the main machine, starting with the cellulose, all the way to the finished product stage.”
As of October 2024, the company’s total production capacity is 140,000tpy – 30,000tpy on PM1 at Çaycuma, 35,000tpy on PM2 at Osmaniye, and 75,000tpy at the company’s PM3 in Osmaniye. Some 60% of the company’s products are now exported to five continents.
Within the Turkish tissue market, Can says recent trends are closely linked to shifts in consumer behaviour and global tendencies: “Sustainability, hygiene, and digitalisation, in particular, are playing a decisive role in shaping the market. As is well known, hygiene products experienced a surge in demand globally due to the Covid-19 pandemic, surpassing pre-pandemic levels. According to 2020 data, the global tissue paper market was valued at $20.86bn in 2021 – these figures are expected to expand at a compound annual growth rate (CAGR) of 3.3% until 2028.” In 2024, the global tissue paper market size was valued at $85.81bn in 2023. Between 2024 – 2032, a CAGR of 5.2% is expected, resulting in a market valued at $118.1bn in 2032. According to Statistica, Toilet Paper holds the largest market volume, amounting to US$113.80bn in 2024.
Within Türkiye, Covid-19 caused “significant changes in paper purchasing habits,” he says. “In the early stages of the pandemic, concerns about hygiene led to a sudden surge in demand for hygiene products such as toilet paper, paper towels, and tissues. This resulted in empty shelves and stock shortages in supermarkets. However, as the pandemic continued and hygiene habits became ingrained, this sudden surge in demand returned to normal levels. Despite this, consumers remained sensitive about hygiene and adopted a more conscious approach to using paper products. The demand for high-quality and hygienic products increased, and there was also a growing interest in environmentally-friendly and recycled paper products.”
Over the past four years, machinery investments have reflected that increase in demand: “Further investments at paper mills in southern Türkiye over the past few years have been steadily boosting the region’s economic value. As Essel, with the 75,000-ton capacity the Toscotec-supplied PM3 that we commissioned at our existing facility in Osmaniye in 2021, we made a significant investment not only for the region but also for the country. Being the Türkiye’s widest and highest-capacity tissue paper machine, this facility is just one of the Esen family’s steps towards managing the current global raw material and energy crisis well, with state-of-the-art products and environmentally-friendly approaches.”
Türkiye’s AfH market, he adds, experienced a decline during the pandemic but is now showing signs of recovery with the normalisation process. The revitalisation of the tourism sector, in particular, he adds, is positively impacting the market. Retailers are also increasingly gaining market share with their own private-label paper products, and Can says this trend intensifies competition while offering consumers more choices.
Specifically for Essel, in line with growth objectives in the local market, the business is reaching wider audiences by launching new products and responding to new tissue trends. It has strengthened its collaborations with chain stores, which means it can “connect with more consumers nationwide while effectively utilising various sales channels.” This has led to the launch of the Aqua Bambu family of toilet paper, paper towels, and facial tissue products, which he says offers extra softness thanks to its puffy layers and bamboo fibres. The Drop Natura range consists of toilet paper, paper towels, and napkins, and is produced entirely from recyclable materials, and Aqua pocket tissues are also among the company’s new products.
Consumers, Can adds, are increasingly showing growing interest in environmentally-friendly and recycled paper products: “This is encouraging manufacturers to adopt more sustainable production methods and products. Demand for certified products, such as those with the FSC label, is also on the rise. For Essel, in the past year our growth strategy in the local market has undergone a sustainability-focused transformation. We no longer solely prioritise profitability, but also our environmental and social impact. We are investing in increasing the use of recycled raw materials, improving our energy efficiency, and reducing the environmental impact of our products throughout their lifecycle. In this way, we aim to meet the evolving expectations of our customers while contributing to a more sustainable future. Our priority moving forward is to transform all our existing factories, both old and new, into environmentally-friendly ones.”
In line with this commitment, he says the company is sourcing 100% pure cellulose from FSC-certified forests: “Our goal is to achieve both social, economic, and environmental sustainability whilst providing high-quality tissue paper products to the Turkish and global markets.” Investments in high-tech factories across Türkiye are also key, and the company has recently commissioned “Türkiye’s newest and highest-quality recycling deinking system” and a treatment plant that Can says supports zero-waste production at the business’ Çaycuma facility. “We now produce and deliver to consumers products made from 100% recycled paper, without any manual intervention. Our treatment plant, which performs both organic and chemical treatment, is also the first and largest of its kind in the Çaycuma Organised Industrial Zone. This plant ensures that the water discharged from our deinking system complies with the regulations of the Ministry of Environment. We designed this treatment plant in such a way that more than 60% of the water can be reused, investing €1.5m in this treatment system alone.”
Growth targets for 2024 within Türkiye include enhancing the efficiency of existing facilities and invest in environmentally-friendly production technologies: “This will enable us to meet the growing demand while reducing our carbon footprint.”
In international markets, the main goal is to expand its strategic partnerships and export network: “Currently, we export approximately 60% of our products to over 60 countries. Exports are heavily concentrated in the Middle East and African markets, and the US is also an important market for Turkish manufacturers, but high container prices are currently a disadvantage. Elsewhere, in Europe paper production is shrinking due to high energy prices and costs. We aim to gain a competitive advantage through our sustainable and innovative products. In the first nine months, exports have risen to $80m. In 2024, our production capacity reached 30,334 tons in the first quarter and 60,258 tons in the second quarter.”
Increased export will remain a vital for the business: “We are currently observing some overcapacity in the Turkish paper market. This situation intensifies competition and puts pressure on prices. However, we are implementing various strategies to overcome this challenge. Primarily, we are focusing on gaining a competitive advantage by differentiating our products and creating added value. We invest in innovation and R&D efforts to develop products that better meet the needs of our customers and offer them unique benefits.”
Additionally, he says the company places great importance on efficiency and cost optimisation initiatives: “By continuously improving our production processes and utilising our resources more effectively, we are reducing our costs and enhancing our competitiveness. Our sustainability efforts also set us apart from our competitors. Our Drop Natura brand, made entirely from recyclable materials, is the perfect example of this. As Essel Pulp and Paper Industry, today we are a world leading manufacturer of 100% pure cellulose and 100% recycled jumbo rolls for toilet paper, facial tissues, napkins, and paper towels.
He adds the local market may also see more merger and acquisition activity in the coming period. “However, we believe that such transactions should be managed carefully to ensure they do not negatively impact the competitive environment or harm consumers.”
An increased demand for recycled paper is also being seen, a consequence of the energy crisis: “The energy crisis has caused significant changes in the paper market, affecting both producers and consumers. As paper manufacturers, we have taken several steps to increase our energy efficiency and manage costs in response to this crisis. We focused on reducing energy consumption by optimising our production processes and investing in energy-saving technologies. This can be seen as a positive development, both in terms of saving energy and conserving natural resources. For consumers, changes have also been observed as people have started to prefer recycled paper products due to environmental concerns and cost factors. Their preference for more durable and long-lasting paper products to reduce costs is also a notable trend.”
There is a “moderate increase” in the gross sales of paper and towel products in the local market: “The market isn’t completely stagnant, but it’s not experiencing rapid growth either. Consumers are leaning towards softer, more absorbent, more durable, and environmentally-friendly tissue papers. Therefore, innovation and product development are vital for companies in the sector. It’s essential for tissue paper manufacturers to develop strategies focused on innovation, sustainability, and efficiency, and to evaluate new market opportunities.”
Consumers, he says, are increasingly making more conscious choices, especially when it comes to sustainable products: “This presents a significant opportunity for us. We anticipate a growing demand for products made from recycled or sustainably sourced raw materials. Therefore, we are investing in making our production processes more environmentally-friendly and expanding our range of sustainable products. We have also observed that consumers’ expectations for hygiene and quality are increasing. In line with this, we are prioritising R&D efforts to improve the performance and user experience of our products.”
And the key opportunities and challenges for the year ahead? “First and foremost, I want to express our optimism for the future of the paper industry. While there are challenges, advancements in areas such as sustainability, innovation, and digitalisation are creating new opportunities for our sector. We will continue to grow and develop by seizing these opportunities.
“Absolutely a growing environmental awareness is driving a surge in demand for sustainable and recycled paper products. This presents a significant growth potential for Essel, given our investments in eco-friendly production processes and products. Moreover, the fact that we source most of our raw materials from domestic sources provides us with a crucial advantage against global supply chain disruptions, further bolstering our sustainable growth.”
