Sappi Exploring Closure of Biberist Mill

Sappi Fine Paper Europe (SFPE), Brussels, Belgium, is considering the closure of its Biberist Mill in Switzerland in response to market conditions and sustained increases in input cost. Sappi notes that due to continued overcapacity in the European coated and uncoated fine paper markets, it has not been possible to recover the sharply increased costs of raw material and energy during recent years. The company has therefore undertaken a review of its European production activities.

"Despite our best efforts to curb costs and gain better margins, Biberist Mill has been unable to generate acceptable returns. Consequently, SFPE is entering into a consultation process with its Biberist mill employee representatives and social partners," the company explained in a press release. "The aim is to identify the best way of improving SFPE's profitability, which may also include a full closure of Biberist Mill. The continued, unrelenting increases in input costs and the excessive local energy prices, combined with overcapacity in the European market, have led to unacceptable returns for SFPE and it therefore became necessary to review production capacity."

In the event that production at Biberist Mill does cease, customers for the coated fine paper products would be offered comparable products and services from other Sappi sites in Europe and no supply interruption would be anticipated, the company added. The uncoated product lines consisting of the Cento family of brands would be discontinued. The sales office in Switzerland will continue operations.

If the Biberist mill is closed, Sappi would reduce its coated fine paper capacity by 435,000 metric tons and its uncoated fine paper capacity by 65,000 tons. Should the mill close, approximately 550 employees would be affected.

TAPPI
http://www.tappi.org/