Duni, Malmö, Sweden, reports that it will enter into trade union negotiations with the intention to close one of three production units of its Sweden-based Rexcell Tissue and Airlaid AB subsidiary The unit, which produces and sells material focused on the hygiene products sector, is not profitable and the assessment has been made that acceptable profitability also cannot be achieved in the foreseeable future. The decision affects approximately 110 employees at its Rexcell subsidiary.
The closure of the production unit entails a one-off cost of SEK 83 million, which was incurred in the fourth quarter of 2012. However, it is calculated that Duni's net debt will fall in the long-term as a result of the closure. Sales from the production unit primarily involve external sales for the Tissue business area. The reduction in sales is not expected to have any negative impact on the Duni Group’s operating income. It is estimated that the unit will be fully closed during the first quarter of 2014.
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