Holmen Paper to Trim Workforce at Braviken Paper Mill in Sweden

Nov. 16, 2011 - Holmen Paper said that it is opening union negotiations to reduce the workforce at its Braviken Paper Mill, outside Norrköping, in Sweden.

The reasons for the cutbacks are continued poor profitability and increasing competition, the company said.

Holmen said that it has informed employees about the coming job cuts, which will affect about 80 of the mill's 600 workers.

"Holmen Paper’s profitability is already low and we are continuing to experience tough market conditions," said Henrik Sjölund, head of Holmen Paper. "We are therefore stepping up work on cutting our fixed costs. Unfortunately this will mean losing some employees."

In addition to job cuts at Braviken Paper Mill, Holmen is also overhauling its central functions such as marketing and sales. In addition, the company is switching to more refined products.

"Holmen Paper is in the middle of restructuring the Swedish units so that they produce more refined and thus more profitable products, and that strategy will remain in place," Sjölund said. "We are exploiting the competitive advantages that our access to virgin fibre brings and increasingly becoming a specialist paper company."

The Braviken mill produces newsprint, colored newsprint, telephone directory paper, and MF-magazine papers and has an annual production capacity of 750,000 tonnes.

SOURCE: Holmen Paper