Rottneros to Implement Cost-Cutting Program
Feb. 3, 2006 - Stockholm-based market pulp producer Rottneros announced that it will carry out a new cost-cutting program to save SEK 100 million with a special focus on variable costs, including staff cutbacks that the company said will affect about 70 positions.
Rottneros made the announcement in its 2005 year-end report.
Rottneros anticipates a cost increase of SEK 55 million for electricity in 2006 over 2005, and said with the current price structure for electricity, the company could face additional cost increases in 2007.
Initial stages of the program will be implemented immediately, Rottnreos said.
Rottneros produces market pulp and has an annual production capacity of around 700,000 tonnes of pulp produced at four mills in Sweden and one in Spain. The company employs 835 people.