A&R Carton to Close Norrkoping Plant in Sweden

Sept. 27, 2011 - Swedish packaging producer A&R Carton said that it is optimizing its production in the Nordic region and, as a result, plans to close its plant in Norrkoping, Sweden.

About 80 employees will be affected by the closure.

Negotiations with the trade union representatives have begun, A&R Carton said.

"Competition on the European folding carton market is tough and it is not possible to make the products we make today in a competitive manner with the cost structure in the plant in Norrkoping," said Per Lundeen, Group CEO of A&R Carton AB.

In a written statement, A&R said, "The factory has been unprofitable for many years. Despite numerous efficiency enhancements and investments in operations, it has not been possible to reverse the trend. The volumes that are currently produced in the factory will gradually be transferred primarily to A&R Carton's plants in Lund and Finland in 2012. Deliveries to customers will continue without interruption."

SOURCE: A&R Carton AB