Smurfit Kappa Group to Cut Containerboard Capacity
March 27, 2008 - Smurfit Kappa Group said that it plans to permanently close 130,000 tonnes of less-efficient containerboard capacity, along with reducing production capacity in 2008 by up to 80,000 tonnes through market-related downtime.
The permanent capacity reduction will be the result of the closure of SKG's Valladolid recycled containerboard mill in Northern Spain in the second quarter of 2008. The Valladolid mill has an annual capacity of 130,000 tonnes. The closure will reduce SKG's recycled containerboard capacity in 2008 by 70,000 tonnes, the company said.
In addition, SKG will take up to 80,000 tonnes of market-related downtime—the majority of which will be taken during March/April 2008—to optimize the Groupís supply-demand balance and to address an increase in inventory levels of recycled containerboard.
SKG said it will continue to review its production capacity, the cost profile of its mills relative to integration requirements, broader market demand and industry inventory levels.
SOURCE: Smurfit Kappa Group