Sappi to Cease Coated Graphic Paper Production at Biberist Mill
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Sappi Fine Paper Europe, Brussels, Belgium, announced this week that it will cease production of coated graphic paper at its Biberist paper mill in Switzerland. The company noted that it made the definitive decision "after due and thorough consideration during the consultation process with local employees ending on May 16." Production is expected to cease by the end of July.
Sappi added that it is continuing to investigate possibilities for the sale and alternative industrial use of the site. "Promising leads are being followed up, with a clear emphasis on those that generate maximum employment opportunities. To give potential acquirers interested in converting the mill to alternative products the opportunity to complete a transaction, a decision regarding the future of PM 6 and PM 9 as well as associated support departments has been postponed. However, those employees working on PM 8 and associated people in finishing and supporting departments will be served notice of redundancy by the end of May," the company explained. In consultation with and supported by the Cantonal government of Solothurn, a decision concerning the remaining employees will be made by the end of July. The Biberist Mill employs around 550 employees in total.
"We recognize this is a very difficult and unfortunate outcome for those employees concerned, their families, and the communities surrounding the mill," Berry Wiersum, CEO of Sappi Fine Paper Europe, said. "Unfortunately this action was unavoidable and essential given the continued overcapacity and sustained increases in input costs."
Volumes produced at the mill will be transferred to other Sappi sites. Production of the uncoated Cento brand will continue unless a suitable new owner for the mill is not found by the end of July. There will be no supply interruption of coated paper to customers during the transfer of production.
With the cessation of coated graphic paper production at Biberist mill, Sappi will reduce its coated graphic paper capacity by 500,000 metric tpy.
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