GERMANY (News release) -- Sappi Europe completed a consultation process on the closure of Stockstadt mill in Germany and agreed on the social plan for the employees. In addition, an agreement has been signed for the sale of the site. The closure of the site should be completed during the first calendar quarter of 2024. Once all closure elements are taken into account, the impact is expected to be cash neutral.
Marco Eikelenboom, CEO of Sappi Europe stated: "These are globally challenging times and Sappi Europe is faced with overcapacity in graphic paper forcing us to take extended periods of costly commercial downtime. As the recent over-stocking by customers reduces it has become very clear that demand will not return to previous levels. Combined with input cost pressure, we do not see this situation, caused by factors beyond our control improving in the foreseeable future.
"We have therefore decided to inform both the mill management and the Works Council that we are today starting the consultation process on the potential closure of the Lanaken mill. In parallel we are reviewing how best to reduce overall fixed and other overhead costs."
Sappi Lanaken Mill is an integrated pulp and paper mill located in Belgium, currently employing a total 644 workers with a production capacity of 165,000 tpa of pulp which is used to produce 530,000 tpa of coated woodfree paper mainly sold into the European print market.
Sappi Stockstadt Mill is an integrated pulp and paper mill located in Germany, with a production capacity of 145,000 tpa of pulp (for internal use) and 220,000 tpa of coated and uncoated woodfree paper mainly sold into the European print market.
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