Consumables

Sappi Fine Paper Europe contemplates cessation of production

Wednesday 06. August 2008 - Sappi Fine Paper Europe contemplates cessation of production at its Blackburn Mill and intends to cease production from Paper Machine PM5 at its Maastricht Mill in response to overcapacity and unrelenting input cost pressure

As a result of continued overcapacity in the European Coated Fine Paper market, it has not proved possible to recover the sharply increased costs of raw material and energy over recent years. Sappi has therefore undertaken a review of its European production activities.
Despite our best efforts to curb costs, Blackburn Mill and paper machine no 5 at Maastricht Mill have been unable to generate acceptable returns. Consequently, Sappi has entered into a consultation process with employee representatives at both facilities with a view to cease production at Blackburn Mill and PM 5 at Maastricht Mill.

The sales office for Coated Fine Paper in the UK will continue operations as will the Specialities Sales and Marketing Organisation.

In the event that these production lines do cease to produce then customers will be offered comparable products and services from other Sappi sites in Europe and no supply interruption would be anticipated.

Blackburn has the capacity to produce 120,000 tonnes of Graphic coated fine paper annually. Paper machine PM5 at Maastricht has the capacity to produce 60,000 tonnes of speciality paper annually.

If the closure of Blackburn mill and PM 5 at the Maastricht mill were to happen and as a result of reallocation of products, Sappi would reduce its Graphic coated fine paper capacity by 190,000 tonnes.