A&R Carton to Close Norrköping Folding Carton Plant

A&R Carton, Sweden, this week said that as part of an effort to optimize its production in the Nordic region, it will close its folding carton plant at Norrköping, Sweden. The plan would affect around 80 employees. An additional 12 people were given notice earlier in the year.

Competition on the European folding carton market is tough and it is not possible to make the products we make today in a competitive manner with the cost structure in the plant in Norrköping," said Per Lundeen, Group CEO of A&R Carton AB.

The factory has been unprofitable for many years. Despite numerous efficiency enhancements and investments in operations, it has not been possible to reverse the trend. The volumes that are currently produced in the factory will gradually be transferred primarily to A&R Carton's plants in Lund and Finland in 2012. Deliveries to customers will continue without interruption.

"We regret that we are forced to make employees redundant, but it is necessary to maintain our competitiveness. By concentrating production in specialized factories, we will create a number of competence centers that will make us more efficient and give us better opportunities to develop new products. This will benefit our customers, which will also protect the jobs in our other plants," Per Lundeen added.

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