Maintained or increased Capex in the forest
European paper and forest product companies will maintain or increase their capital expenditure, capex, in 2015 to meet their expansion plans, says Moody's Investors Service.
"This reflects our expectation that increased operating earnings from rated packaging companies will outweigh those from paper producers, which continue to face secular declines, which is why our outlook for the sector is stable," observes Mr Volkmer.
Metsa will increase its capex fourfold in 2015, on the back of the expansion of its folding boxboard production capacities. Portucel is set to increase its capex significantly in 2015. Smurfit Kappa's growth and acquisition strategy has also been expansive. Ence Energia y Celulosa is likely to maintain its capex level, albeit at a relatively low level on a historical basis.