South Korea’s Ssangyong C&B is reducing raw material costs by approximately 20–30% compared with virgin pulp through the use of recycled paper, discarded milk cartons and waste corrugated board, while expanding exports under its parent company’s international brands.

At the company’s Sejong plant in Jochiwon, recycled materials account for approximately 50–55% of production. The facility processes recovered printing paper and separates fibers from coated materials, including milk cartons, paper cups and aseptic beverage cartons. Its annual paper-carton recycling volume exceeds 3,000 tonnes.

The plant also holds patented technology for producing brown toilet tissue from waste corrugated board. However, maintaining consistent product quality remains a challenge, as recovered paper varies in fibre characteristics and contamination levels depending on its source.

The facility manufactures approximately 200 products, including toilet tissue, facial tissue and kitchen towels. Product differentiation includes the use of cotton fibers, loess and lotion applications to improve softness and surface feel.

Exports expand under APP ownership

Ssangyong C&B is also expanding its finished-product exports following the acquisition of MSS Holdings by Indonesia-based Asia Pulp & Paper (APP).

Completed in November 2024, the transaction was valued at approximately KRW 422.1 billion and included Ssangyong C&B and hygiene products company Mona Lisa.

The company began manufacturing APP’s premium Paseo tissue brand in South Korea for export to Thailand in July 2026. Following additional orders, production volumes were increased to approximately twice their previous level in October, according to Yonhap News Agency.

Export volumes remain a small proportion of total production, but the company plans to develop its international business further.

Under the arrangement, Ssangyong C&B imports pulp from APP’s Indonesian mills, manufactures tissue parent rolls and finished products in South Korea, and uses APP’s overseas sales network to reach international markets.

Thai-bound products carry South Korean origin labelling, including the “Made in Korea” designation.

Recycling faces higher energy costs

Despite the raw material cost advantage over virgin pulp, increasing recycled-fiber utilization presents operational challenges. The recycling process requires more electricity than producing tissue parent rolls from virgin pulp, according to the company’s production management.

Ssangyong C&B reported that electricity prices had risen by approximately 70%, adding to manufacturing costs. The company therefore plans to balance recycled-material use against market demand, energy costs and production economics rather than increase the recycled-content share indiscriminately.

The development comes as South Korea moves to strengthen paper-carton collection and recycling. An industry agreement signed in September 2026 brought together the government, paper manufacturers, dairy companies and carton producers to improve collection, sorting and recycling.

Separate collection began on a voluntary basis at designated apartment complexes in October, ahead of mandatory implementation planned for January 2027.

Improved collection infrastructure could help recyclers secure more consistent supplies of recovered carton fiber, although the economics of processing will continue to depend on energy consumption, material quality and the cost of competing raw materials.