Palm Group shifts King's Lynn PM7 to produce 700,000 tonnes of lightweight containerboard

A Strategic Pivot in the European Paper Market

The structural decline of the European newsprint market has claimed another high-profile casualty, but this time, it is a calculated strategic pivot rather than a retreat. Palm Group has announced a massive transformation at its King’s Lynn mill in the UK, converting its colossal PM7 machine from newsprint to lightweight corrugated case material (CCM). Scheduled for completion in the first quarter of 2027, this overhaul will see the 10.6-meter-wide machine—currently the world's widest for newsprint—reconfigured to produce up to 700,000 tonnes per year of recycled containerboard.

This move highlights a broader industry trend in 2026: the aggressive transition of graphic paper assets into packaging grades. With newsprint demand in Western Europe having plummeted by roughly 60% over the past decade, major players are forced to adapt. Palm’s decision to repurpose a greenfield site built just in 2009 demonstrates the rapid pace at which market fundamentals are shifting toward e-commerce and sustainable packaging.

The Technical Feat with Voith

Converting a machine of this scale is no small undertaking. Palm has once again partnered with Voith to execute this complex retrofit. The two companies share a long-standing relationship, having previously collaborated on major projects like the BlueLine OCC stock preparation system at Palm’s Aalen site in Germany.

The upgraded PM7 will focus heavily on the lightweighting trend that is currently dominating the corrugated sector. Key specifications for the converted machine include:

• Annual Capacity: 700,000 tonnes of CCM.
• Machine Width: 10.6 meters, allowing for maximum flexibility in reel widths.
• Basis Weights: Starting at an ultra-light 60 g/m².
• Fiber Source: 100% recycled paper furnish.

By targeting basis weights as low as 60 g/m², Palm is directly addressing the packaging industry's demand for material efficiency. Lightweight containerboard reduces transport emissions, lowers raw material consumption, and aligns perfectly with the stringent sustainability targets of major FMCG brands in 2026.

Market Dynamics and the Dual Strategy

The injection of 700,000 tonnes of lightweight CCM into the European market by early 2027 will undoubtedly ripple through the supply chain. From March 2027, Palm will be able to supply its UK and mainland European customers with corrugated products from four different mills across Germany, France, and the UK, significantly shortening lead times and increasing supply chain resilience.

However, Palm is not entirely abandoning its roots. The company has made it clear that it intends to maintain its position as Europe’s largest supplier of newsprint. To secure this flank, Palm recently invested €100 million in its Eltmann paper mill in Germany. With two machines and a combined annual capacity of 550,000 tonnes, the Eltmann site is designed to absorb the consolidated demand of Palm's remaining newsprint customers, ensuring long-term competitiveness in a shrinking but still essential market.

This dual strategy—aggressively expanding into high-growth packaging while consolidating and optimizing legacy graphic paper assets—is a textbook example of mature industrial management. It allows Palm to leverage its existing recycling infrastructure, managed by Palm Recycling, to feed both product lines with 100% recovered fiber, maintaining a closed-loop circular economy.

Palm’s decision to convert PM7 is a masterclass in industrial adaptation, turning a market vulnerability into a massive competitive advantage in the lightweight containerboard sector. Will the European market be able to absorb this sudden influx of 700,000 tonnes of CCM in 2027 without triggering a price war in the lightweight segment? Follow The Paper for daily news, market signals and key updates from the global paper, corrugated and packaging industry. — Sigue toda la actualidad del sector en www.thepaper.ai