Holmen to Further Reduce Its Papermaking Capacity by 10 Percent

May 21, 2013 - Holmen Paper said that it will further permanently reduce its annual paper production capacity in Sweden by 10 percent or about 115,000 tonnes in the third quarter of this year.

The company did not disclose specific details of the additional capacity cuts.

Today's announcement follows Holmen's two previously announced paper machine closures.

In October of 2012, Holmen said it would shut down PM 3 at Hallsta Paper Mill. PM 3 manufactures 140,000 tpy of SC (Super Calendered) paper. Then, in March of this year, the company announced that it would cease production on PM 51 at its Braviken Paper Mill. PM 51 produces 200,000 tpy of newsprint.

Holmen said in a statement that the ongoing restructuring program is taking place against the backdrop of considerable losses in the business.

“The extensive capacity cuts announced will gradually lead to a better market balance in 2013,” said Henrik Sjölund, head of Holmen Paper.

SOURCE: Holmen Paper