Holmen Paper to Reduce Hallsta Mill Workforce by 150
June 25, 2010 - Swedish paper producer Holmen Paper said that negotiations are underway on reducing the workforce at its Hallsta paper mill in Hallstavik, just north of Stockholm in Sweden.
About 150 people will be affected by the decision.
"As the market for printing paper continues to be weak, we are forced to take steps to maintain our competitiveness and improve profitability," said Arne Wallin, head of Holmen Paper. "Unfortunately, these measures mean that a number of employees will have to leave the company."
Holmen Paper said that it has already reduced its staff, improved the product mix and shutdown unprofitable production capacity. In Hallsta, the recovered paper operation and one paper machine was shutdown in 2008.
"We’ve succeeded in reorganizing production at Hallsta so that we manufacture more improved products such as MF Magazine and book paper," Wallin said. "But to achieve acceptable profitability, we also need to lower our fixed costs.
"Combined with the continuous efforts of further developing our products, among others through a rebuild of PM 11, this lays the foundations for securing a future for the mill that is sustainable in the long term," Wallin added.
The Hallsta mill operates three machines and has a total production capacity of about 700,000 tons of MF Magazine, MF specialities (improved grades of newsprint) and SC paper.
SOURCE: Holmen Paper