Ziegler Papier AG, Switzerland, announced this past Wednesday that the company will be ceasing production of fine and special papers at the company's Grellingen plant in Switzerland. The decision to discontinue production was taken because of persisting over-capacities, the negative exchange rate situation, and the major price pressure as a result. With a subsequent Swiss National Bank decision of January 15 of this past year, the situation has worsened again. 

Over recent years, Ziegler Papier has implemented various innovation and efficiency improvement projects and continued to invest at the Grellingen site. But the possibilities have now been exhausted. Further cost reductions make no sense. In addition, one can assume that the situation and prospects for the Grellingen plant will not fundamentally improve over the next few years, especially in view of the fact that there are no signs of price relaxation on the raw materials side.

Production will thus be ceased, probably at the end of April 2016. The company will re-purpose the plant site. 

The managing owners have by this week personally informed the mill's employees of the decision.The authorities of the Canton of Baselland and the local council, as well as the KIGA, have also been informed. The consultation process has now been initiated. Together with the trade union, SPV, Ziegler Papier will now finalize the Social Plan as provided for in the collective bargaining agreement and look for the best possible solutions for its around 100 employees. 

The managing owners of the 155-year-old family business regret that, despite the great commitment of the employees and despite innovative and cost-saving measures, production at the Grellingen site has to be ceased because of the adverse circumstances.