Holmen to Close Board Machine in the UK

Sept. 28, 2009 - Holmen said it will be closing down one of its two board machines (BM 1) at the Workington Mill in Cumbria, UK at the end of 2009.

BM 1, installed in 1967, has an annual capacity of 70,000 tonnes of folding boxboard in the lower quality segments, Holmen said.

The machine closure will affect about 100 jobs at the mill.

At the same time, the remaining board machine (BM 2), with a capacity of 180,000 tpy, will be upgraded to produce an additional 20,000 tpy. This will result in the mill's current annual capacity being reduced by 50,000 to 200,000 tons — a volume better adapted to the market, the company said.

BM 2 produces folding boxboard in the higher quality segments.

“This will make us even more competitive and further bolster our transition towards the highest quality segments,” said Magnus Hall, president and CEO of Holmen.

Staff Cuts at Braviken Mill
At Holmen's Braviken paper mill in Sweden, the company is conducting a review of the organization and work methods and expects to cut staff by about 100.

The Braviken mill primarily produces newsprint and colored telephone directory paper.

“The market for printing paper continues to be weak. We must continue our efforts to streamline the organization and make sure that our units maintain their competitive edge,” Hall said.

“At the same time, it's regretful that the measures now being taken mean that several of our employees will now be forced to leave the company,” he added.

SOURCE: Holmen

PaperAge. Copyright © O'Brien Publications, Inc. All rights reserved.