Sappi to close PM2 at its Stockstadt mill in Germany
July 13, 2020
GERMANY (News release) -- Sappi announced the closure of Paper Machine 2 ("PM2") at its Stockstadt Mill in Germany.
Sappi Limited said the move will cumulatively remove capacity, reduce costs, improve machine utilization and increase competitiveness.
On 11 February 2020, Sappi Europe announced the initiation of a process to determine the future of PM2 at its Stockstadt Mill in Germany, in view of the continuing decline of the Coated Woodfree paper market. Following an exhaustive consultation process an agreement was reached with mill employee representatives to permanently close PM2, which has a Coated Woodfree paper production capacity of 240 000 tons per annum. Stockstadt will now focus on its strong and growing uncoated woodfree offering. Approximately 170 employees will leave the company with production expected to cease on 30 September 2020. The once-off restructuring charges amount to approximately €27 million (€15 million cash; € 12 million non-cash). The estimated annual saving will be approximately €15 million.
