Marcal Paper has acquired the St. Catharines Tissue Mill in Ontario, Canada, from BiOrigin Specialty Products, strengthening its position in the North American premium tissue market.

While financial terms were not disclosed, the acquisition represents a strategically important move for Marcal as demand continues shifting toward:

• premium tissue products,
• high-absorbency towel grades,
• and value-added specialty paper segments.

Why the St. Catharines Mill Matters

Founded in 1912, the St. Catharines facility has a long history in tissue and specialty paper manufacturing.

The mill produces:

• TAD parent rolls
• premium paper towel grades
• bath tissue products
• and specialty paper products

The key detail here is the mill’s TAD capability.

What Is TAD Technology?

TAD stands for:

Through-Air Drying

It is one of the most advanced tissue manufacturing technologies in the global tissue sector.

Compared with conventional tissue production, TAD technology enables:

• higher bulk,
• improved softness,
• greater absorbency,
• and stronger wet strength.

TAD tissue products are commonly used in:

• premium kitchen towels,
• high-end bath tissue,
• Away-From-Home hygiene products,
• and institutional paper systems.

However, TAD production also requires:

• significantly higher capital investment,
• greater energy consumption,
• and more complex process engineering.

Because of these barriers, TAD assets remain relatively scarce and strategically valuable across North America.

Strategic Importance for Marcal

Before this acquisition, Marcal Paper already operated nine tissue production facilities across the United States.

Adding the St. Catharines mill provides several strategic advantages:

1. Expansion into Premium Tissue Segments

The acquisition strengthens Marcal’s ability to compete in:

• premium retail tissue,
• private-label towel products,
• and institutional hygiene markets.

Consumer demand continues moving toward:

• softer tissue,
• stronger absorbency,
• and higher-performance paper products,
  particularly in North America.

2. Cross-Border Manufacturing Footprint

The Canadian mill gives Marcal:

• broader geographic manufacturing coverage,
• improved logistics flexibility,
• and additional supply-chain resilience.

This is increasingly important as:

• freight costs remain volatile,
• energy prices fluctuate,
• and regional supply security becomes more critical.

3. Diversification into Specialty Papers

Beyond tissue, the facility also produces specialty paper grades.

This diversification may help Marcal:

• reduce dependence on traditional tissue cycles,
• improve product mix,
• and access higher-margin specialty markets.

North American Tissue Industry Continues Consolidating

The acquisition reflects broader structural changes in the North American tissue industry.

Large tissue producers are increasingly pursuing:

• capacity optimization,
• premiumization,
• and vertical integration.

At the same time, older mills face mounting pressure from:

• rising fibre costs,
• labour inflation,
• energy volatility,
• and environmental compliance requirements.

Facilities with:

• modern TAD assets,
• experienced labour,
• and specialty converting capability
  are becoming more attractive acquisition targets.

Labour and Workforce Considerations

Marcal emphasized the importance of the existing workforce, including members of:
Independent Paper Workers Union Unit 124.

Experienced tissue-machine operators remain highly valuable in the paper industry because:

• TAD systems require advanced operational expertise,
• tissue quality consistency is difficult to maintain,
• and machine efficiency strongly affects profitability.

The integration of skilled operational teams is often as strategically important as the equipment itself.

Market Context: Premium Tissue Demand Remains Strong

Despite digitalization affecting printing paper demand, tissue remains one of the most stable fibre-based paper sectors globally.

Growth drivers include:

• household hygiene demand,
• Away-From-Home consumption,
• healthcare tissue applications,
• and premium consumer preferences.

Meanwhile, retailers increasingly compete through:

• private-label premium tissue,
• sustainability positioning,
• and product performance differentiation.

TAD technology plays directly into these trends.

Industry Perspective

This acquisition highlights an important reality in the pulp and paper industry:

Not all paper sectors are declining.

While printing and writing papers continue facing structural pressure, tissue and hygiene products remain strategically attractive because they are:

• essential,
• less digitization-sensitive,
• and increasingly premiumized.

For Marcal, acquiring an established TAD tissue asset may provide:

• long-term production flexibility,
• premium market access,
• and a stronger competitive position in North American tissue manufacturing.

Last Updated on 20/05/2026 by Jota Machinery