Leipa to Idle Operations at PM1 at its Schwedt Mill
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In a strategic measure to strengthen its competitive position, LEIPA plans to concentrate the production of graphic papers on the technologically more advanced PM4 paper machine and discontinue operation of the older PM1. This decision is part of a comprehensive approach to site optimization, which is also being pursued in Schrobenhausen, albeit with investment volumes adapted to the current market environment. In view of the challenges facing the paper industry due to external factors such as political decisions, a weak economic environment and declining demand for graphic papers, LEIPA is taking proactive measures. The adjustment and optimization of production capacities is essential in order to remain competitive as a reliable business partner and employer in the long term. From mid-2024, LEIPA will therefore concentrate the production of graphic papers up to 90 gsm in Schwedt on PM4 and discontinue the operation of PM1.
"Our customers continue to benefit from our high-quality range of graphic papers up to a weight of 90 gsm. PM4, with an annual capacity of 340,000 tons in the magazine paper sector, based on 100% recycled material, represents the state of the art in terms of technology, resource efficiency and sustainable papermaking. We are aware of the implications of the decision to close PM1 and its impact on around 100 of our employees. In cooperation with the works council, LEIPA is striving to find socially responsible solutions," explain Peter Probst and Antonio Bellante, Managing Directors of the LEIPA Group.
The investment programs at both production sites will be continued in order to ensure LEIPA's long-term competitiveness. For example, the recently communicated planned investments in Schrobenhausen, including a new energy center with significantly reduced CO2 emissions and projects in the area of flexible packaging, will be implemented in line with the original scope. Future-proof measures will also be continued in the cartonboard sector, albeit with adjusted investments.
"These strategic decisions strengthen our market position and reaffirm our commitment to the region, our employees and our business partners," emphasize Probst and Bellante.
