Dario Palma y Meza Espinoza, Chief Operating Officer, Papel San Francisco and Juan José Helú, Sales & Marketing Director, spoke to Tissue World Magazine Senior Editor Helen Morris.
“We remain committed to innovation, sustainability, and delivering high-quality solutions for our partners across all market segments,” Dario Palma y Meza, Chief Operating Officer at Papel San Francisco (PSF) says, from his office in Mexicali, Mexico. “Proudly celebrating our 45th anniversary this year, we see continued opportunities in the Mexican and American tissue markets, where we will continue to grow with our strong and diverse portfolio.”
PSF started up its first tissue machine in 1982 and now operates seven Valmet-supplied tissue machines. “Over the years we have secured a position among the top three Mexican suppliers in both the At-Home and AfH segments,” he adds. “Our strategic location in Northern Mexico provides natural access to the US market, where our brands – Golden Gate, Level, Truly Green and Virtue – are already gaining traction.”
The company’s export efforts have been supported by the launch of TM9 in July of last year, and the upcoming TM10, an Advantage DCT 100TS tissue machine, which is set to begin operations in the first quarter of next year. Both machines are located at the company’s Mexicali mill and will bring PSF’s total paper production capacity to 270,000 metric tons per year.
Supporting the new papermaking machines are several additions in the company’s converting capacity, including a brand-new converting plant in the city of Querétaro, central Mexico, which is due to also startup in the first quarter of 2026.
In terms of tissue trends across Mexico, Juan José Helú, Sales & Marketing Director, says the Mexican market is currently “more competitive” than ever: “Many companies are dealing with overcapacity and are aggressively pursuing sales in an increasingly tight market, which has driven down prices and profitability for both retailers and suppliers,” he says.
The AfH segment peaked around two years ago following the Covid-19 pandemic, but he says it has since become “just as challenging” as the At-Home segment and that prices today “are lower than they were two years ago.”
In the At-Home segment, private label products are the primary driver of growth, showing more than 20% year-over-year increases – whereas national brands have seen little to no growth. PSF is launching “Truly Green” this Autumn, which it said is an environmentally-friendly brand made with 100% post-consumer fibre. “Our goal is to lead the Mexican market in this growing and essential segment,” Helú adds.
However, the Mexican market is currently flat in terms of volume, and with ongoing price reductions the company doesn’t anticipate any growth – at least through 2026. “The current overcapacity across the industry is affecting all players and placing downward pressure on both margin and volume.”
Yet Mexican consumers continue to become more hygiene-conscious and are increasingly willing to purchase paper towels for sanitary purposes: “Additionally, they are opting for higher-quality bath tissue products – but at more competitive prices – particularly within the upper tiers of the market, where there is now a wide variety of options available.”
Palma y Meza says that sustainability remains a key opportunity for the business: “Sustainability has always been our focus as we operate one of the largest recycled-based facilities in North America,” he says. Specific projects for the coming years include water management facilities so that the company can achieve best industry practices.
“It is a significant opportunity for us to position ourselves as the leading environmentally-friendly tissue producer in Mexico,” Helú adds. “We are doing this through our “Truly Green” brand, among other initiatives. Our value proposition – “Save Money while You Save the Planet” – resonates with both retailers and consumers and aligns perfectly with current market trends.”
The challenge now is to “continue achieving growth above the national market average while protecting our low-cost strategy”, he says. “Maintaining strong margins is essential to support ongoing investments in capacity, technology and sustainability.”
Export will also continue to be key: “PSF has recently focused on exporting jumbo rolls on a consistent basis, with emphasis on our competitive advantage in recycled grades and our location on the northwest of Mexico.”
The business is currently supplying several tissue companies in the US and is expecting good growth in this segment.
