FULL STORY
In response to the reduction in European consumption of coated magazine paper arising from the global recession it is apparent that the industry is experiencing overcapacity. Sappi has taken a substantial amount of commercial downtime since the beginning of the year in response to a reduction in demand. Sappi Finland I Oy has today announced that it will enter into a consultation process with its Kangas mill employee representatives. The aim of this process is to identify the best way of improving company profitability, which may include a full closure of Kangas mill. The continued level of downtime is no longer considered viable and it is, therefore, necessary to review production capacity. Possible redundancies would be implemented by the end of the year 2009.
The Sappi Finland I Oy’s, Kangas site employs around 150 employees. Sappi employs around 800 people in Finland.
In the event that the Kangas mill ceases production the Galerie Silk range would be supplied to customers from the Sappi Lanaken mill in Belgium. Sappi would also launch a complementary grade, Galerie Fine Silk, from Sappi Finland I Oy’s, Kirkniemi mill, thereby widening the customer offer of its coated magazine paper range while ensuring that there is no supply interruption.
Kangas mill, has the capacity to produce 210,000 tonnes of coated magazine paper annually. The consultation does not concern Sappi Finland I Oy’s Kirkniemi mill and its Sales Office.
© Graphic Repro On-line, 27 October 2009.
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