Ziegler Papier to Cease Production at Grellingen Paper Mill
Ziegler Papier will cease production of fine and specialty papers at its mill in Grellingen, Switzerland by the end of April.
Jan. 15, 2016 - Ziegler Papier on Jan. 13 announced that the company will be ceasing production of fine and special papers at the Grellingen paper mill in Switzerland. The mill has the capacity to produce about 72,000 tons per year of woodfree fine and specialty papers on one paper machine, PM 3, and employs about 150 people.
The decision to discontinue production was taken because of persisting overcapacities, the negative exchange rate situation and the major price pressure as a result.
With the Swiss National Bank decision of 15 January 2015, the situation has worsened again.
(Editor's note: On January 15, 2015, the Swiss National Bank suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro.)
Over recent years, Ziegler Papier AG has implemented various innovation and efficiency improvement projects and continued to invest at the Grellingen site. But the possibilities have now been exhausted. Further cost reductions make no sense. In addition, one can assume that the situation and prospects for the Grellingen plant will not fundamentally improve over the next few years, especially in view of the fact that there are no signs of price relaxation on the raw materials side.
Production will thus be ceased, probably at the end of April 2016. The company will repurpose the plant site.
The managing owners have [on Jan. 13] personally informed the employees of the decision. The authorities of the Canton of Baselland and the local council, as well as the KIGA, have also been informed. The consultation process has now been initiated.
Together with the trade union, SPV, Ziegler Papier will now finalise the Social Plan as provided for in the collective bargaining agreement and look for the best possible solutions for its around 100 employees.
The managing owners of the 155-year-old family business regret that, despite the great commitment of the employees and despite innovative and cost-saving measures, the production at the Grellingen site has to be ceased because of the adverse circumstances.
With its headquarters in Grellingen, Switzerland, Ziegler Papier Mill produces about 72,000 tonnes per year of fine and specialty papers with weight ranges from 40 to 400 gsm. To learn more, please visit: www.zieglerpapier.com.
SOURCE: Ziegler Papier AG