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Sappi Eyes Closure of Kangas Coated Paper Mill

Oct. 23, 2009 - Sappi said that it may close its Kangas coated paper mill in Jyvaskyla, central Finland.

Talks have started with workers' representatives, and Sappi in a written press statement said, "The aim of this process is to identify the best way of improving company profitability, which may include a full closure of Kangas mill."

The potential closure would be the result of reduced demand in Europe for coated magazine paper which has in turn created overcapacity in the market, Sappi explained.

Sappi noted that it has taken a substantial amount of commercial downtime since the beginning of the year, but the continued level of downtime is no longer considered viable and it is therefore necessary to review production capacity.

The Kangas mill has 150 employees and operates one paper machine, PM 4, which produces 210,000 tpy of coated magazine paper (Galerie Silk)

Sappi said that in the event that the Kangas mill ceases production, the Galerie Silk range would be supplied to customers from the Sappi Lanaken mill in Belgium.

SOURCE: Sappi Limited




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