The buffer period for small and micro enterprises has been extended, and the competitive landscape of the market has changed

The EU has extended a six-month graceperiod for compliance for small and micro enterprises until June 30, 2027.However, industry data shows that only 20% of small and medium-sized paperenterprises in Europe have the ability to trace the geographical coordinates ofraw materials. In contrast, Chinese exporters such as Gali have securedcompliant raw paper supplies. In 2025, their kraft paper exports to Europe areexpected to increase by 2% compared to the previous period, and the gapcontinues to widen.