Smurfit Kappa chief executive Gary McGann has warned industry rivals that it will no longer help support paper prices by shutting factories if others are opening new mills.
In an interview with the Financial Times, the Smurfit chief said the industry was seeing increased profitability due to 'a reasonably disciplined supply demand balance'.
But he said his company would not act as 'sweeper-upper' by closing its factories to keep supply in check.
Smurfit Kappa has shut down 700,000 tonnes of capacity since its 2005 merger. But three of its rivals have recently revealed plans for new paper mills, leading to fears this could increase capacity and depress prices.
