Sappi to Permanently Shut Kangas Paper Mill in Finland

Dec. 10, 2009 - Sappi Fine Paper Europe today said that it will shut down its Kangas paper mill in Jyvaskyla, Finland.

The permanent closure of its Kangas mill is expected to take place no later than the early part of the first quarter of 2010, Sappi said.

Sappi Finland I Oy concluded an agreement with its Kangas mill employee representatives on December 9 which specifies redundancy terms and includes provisions for outplacement and training support for all employees, to ensure that people have the best possible opportunity to secure new employment, Sappi said.

The Kangas mill employs around 150 employees and has an annual production capacity of 210,000 tonnes of coated magazine paper (Sappi's Galerie Silk) on one paper machine, PM 4.

The plant has operated in Finland for 137 years. "We recognize this is a difficult decision affecting our employees, their families and the communities surrounding the mill," commented Berry Wiersum, CEO of Sappi Fine Paper Europe. "Unfortunately this action was necessary to address the impact of the global recession, which has caused a structural drop in demand for mechanical coated paper."

Sappi noted that it's working with the local towns of Jykes and Jyvaskyla to investigate the possibility of the site being used as an industrial area in the future.

Sappi said its Galerie Silk range will be supplied to customers from the Sappi Lanaken mill in Belgium and a complementary grade, Galerie Fine Silk, will be introduced from the Sappi Kirkniemi mill.

There will be no supply interruption to customers during the mill closure and transfer of production, the company added.

SOURCE: Sappi Limited

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