Sappi Fine Paper Europe to Close Nijmegen Mill in the Netherlands
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Sappi Fine Paper Europe (SFPE), Brussels, Belgium, this week reported that, due to the continued market decline and resulting overcapacity in the European coated paper markets, combined with high raw material costs not compensated for by higher selling prices, it will concentrate its production at fewer sites. To help return the company's operations to profitability, it will close the Nijmegen Mill in the Netherlands and shift its entire production to other Sappi mills in Europe.
The decision comes after an exhaustive review of Sappi's European production assets indicated that shutting down the Nijmegen Mill would be the preferred option. The aim of this action would be to optimize Sappi's entire heat set web offset (HSWO) business.
To identify possible alternatives for the future of the Nijmegen Mill, SFPE says it has initiated a process of consultations with its Nijmegen Mill employee representatives and social partners as well as the works council. The mill currently employs 192 people.
Should the relocation go ahead, SFPE capacity for WFC reels would reduce by 240,000 tons.
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