Saber Swiss Quality Paper, New Delhi, India, plans to shutdown TM 5, one of the two machines at its mill in Balsthal, Switzerland, and eliminate 57 of 113 jobs at the mill, as well as reduce staff salaries by up to 10% in the first half of 2012. TM 5, produces approximately 9,000 metric tpy of tissue. The company attributes the shutdown and staff reductions to high pulp prices, the insolvency of a major customer, and the appreciation of the Swiss franc.
The company’s lending bank reportedly imposed the restructuring. The trade union Unia said it is demanding reduced working hours instead of layoffs. Also, it reportedly wants the company to negotiate more favorable credit terms with the bank.
Saber Swiss Quality Paper also produces approximately 28,000 metric tpy of specialty paper on its PM 3 at the Balsthal site. Saber Group acquired the mill from Papierfabrik Horgen in 2009.
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