Rottneros Mill Idled for 10-plus Days Due to High Power, Wood Costs

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Rottneros AB, Sweden, reported late last week that its mill at Rottneros, Sweden, has been idled for some 10 days, corresponding to a production loss of approximately 2,500 metric tons. The company says the downtime is due to the combination of extremely high electricity prices and high timber costs, resulting in sales of marginal volumes being unprofitable. The strong Swedish kronor also contributes to reducing export margins, Rottneros adds. Production during the remaining days of December depends on how these factors develop, the company notes.

The production line for groundwood pulp at the Rottneros Mill has not been affected by the stoppage. The group's other manufacturing unit, Vallvik Mill, which produces chemical pulp, is not as sensitive to electricity prices and is being run at full capacity, the company advises.

Rottneros Mill produces two grades of mechanical pulp—groundwood and CTMP pulp. The mill has a production capacity of around 170,000 metric tpy. In 2009 131,500 metric tons were produced, a reduction of 9%. The mill employs 125 people. Vallvik Mill produces two grades of long-fiber sulfate pulp—fully bleached ECF and unbleached—and UKP (unbleached kraft pulp). The mill has a permit to produce 220,000 metric tpy. In 2009, it produced 193,400 metric tons, a reduction of 4%.