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Sappi Mulls Paper Capacity Cuts in Europe

Aug. 5, 2008 - Sappi Fine Paper Europe today said that it is considering the reduction of production capacity within its coated and specialty papermaking operations in Europe.

The operations involved in the possible capacity cuts are Sappi's Blackburn Mill, located in Lancashire, North West England and PM5 at Maastricht Mill, which is in the Netherlands.

Neither production line has been able to generate acceptable returns, Sappi said.

According to the company, overcapacity in the European coated fine paper market continues to play a negative factor, along with escalating costs of raw materials and energy.

As a result, Sappi said that it has "entered into a consultation process with employee representatives at both facilities with a view to cease production at Blackburn Mill and PM5 at Maastricht Mill."

The sales office for Coated Fine Paper in the UK will continue operations as will the Specialties Sales and Marketing Organization, the company said.

Blackburn has the capacity to produce 120,000 tpy of graphic coated fine paper annually. Paper machine PM5 at Maastricht has the capacity to produce 60,000 tpy of specialty paper.

SOURCE: Sappi Fine Paper Europe




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