Kotkamills to Discontinue Its Operations in Imatra by the End of 2018
In accordance with a lease agreement with Stora Enso, Kotkamills' lease of PM 7 at Stora Enso's Imatra Mill expires at the end of 2018. PM 7 produces saturating base kraft (laminating papers).
July 3, 2017 - The Kotkamills group has been producing Saturating Base Kraft (laminating papers) in Tainionkoski, Imatra, Finland on Paper Machine 7 (PM 7) leased from Stora Enso since the separation of Kotkamills from Stora Enso in 2010. The operations are part of the Group's Industrial Products segment.
Stora Enso has notified Kotkamills that the leasing agreement concerning Tainionkoski PM7 will be terminated in accordance with its terms to expire at the end of 2018.
To serve its existing customers and fulfill the needs arising from increasing demand for laminating papers, Kotkamills is planning to increase the production capacity of Paper Machine 1 (PM1) on Kotkamills' site in Kotka.
In addition, Kotkamills has started preparations to procure external production capacity for laminating papers. The external capacity is planned to be available during the first half of 2018. The planned additional external capacity (excluding PM1 increased capacity) will be higher than the present capacity of Tainionkoski PM 7.
The discontinuation of the Group's operations in Imatra is not expected to have a material impact on the Group's financial position or results of operations.
Kotkamills produces laminating base papers, impregnated products, consumer boards and sawmill products. To learn more, please visit: www.kotkamills.com.
SOURCE: Kotkamills Oyj