Lessebo Paper Says Unprecedented High Prices for Electricity to Disrupt Production

Lessebo Paper said its electricity cost has "unprecedently" increased from EUR 3 million to EUR 19 million per year.

Aug. 31, 2022 - Lessebo Paper announced that the drastically increased price for electricity is forcing the company to halt production at its paper mill in Lessebo, Sweden, effective today, August 31.

According to the company, its electricity cost has "unprecedently" increased from EUR 3 million to EUR 19 million per year.

"The spot price for electricity in south of Sweden has significantly increased for the past months. Today, Wednesday, August 31, the electricity price is at a level of EUR 518,73 per MWh resulting in a daily electricity cost of more than EUR 58,000 for Lessebo Paper. As a result, on Wednesday, August 31, production at Lessebo Paper will be paused. Going forward a decision for production will be taken daily depending on the electricity price for the upcoming day," the company stated.

Jens Olson, CEO at Lessebo Paper, explained, "Since autumn 2021, the electricity price has gradually increased, and we cannot see that the increases have slowed down, rather to the contrary. Historically, the winter period usually entails high electricity prices and the fact that we already have record high electricity prices in August is a concern."

Lessebo Paper is a manufacturer of uncoated graphical premium paper with the highest quality possible. To learn more, visit: lessebopaper.com.

SOURCE: Lessebo Paper