Sappi to Close Nijmegen Mill (Coated Fine Paper) in the Netherlands

Sappi plans to close its Nijmegen Mill in the Netherlands. The mill has the capacity to produce 240,000 tons per year of coated fine paper.

Sept. 30, 2014 (Press Release) - As a result of the continued market decline and consequent overcapacity in the European coated paper markets, combined with high raw material costs not compensated for by higher selling prices, Sappi has generated a loss in its European activities.

To return its European operations to profitability, Sappi has undertaken a review of its European production assets and has identified the need to concentrate its production at fewer sites. Exhaustive analysis has indicated that the preferred option would be to relocate the entire production of Nijmegen Mill to other Sappi mills in Europe. The aim of this action would be to optimise Sappi's entire Heat Set Web Offset (HSWO) business.

In order to identify possible alternatives for the future of the Nijmegen Mill, Sappi Fine Paper Europe (SFPE) has today initiated a process of consultations with its Nijmegen Mill employee representatives and social partners as well as the works council.

Should the relocation go ahead, Sappi Fine Paper Europe's capacity for WFC (Woodfree Coated) reels would decrease by 240,000 tons.

The mill currently employs 192 people.

About the Nijmegen Mill
Nijmegen Mill (The Netherlands), which began operation in 1908, is one of Europe’s largest suppliers of coated fine paper in reels, specifically designed for heatset web offset printing, as well as special coated fine paper for use in digital printing. The mill operates a single paper machine.

SOURCE: Sappi Limited