Business News

Mitsubishi HiTec Paper Bielefeld GmbH is planning to shut down equipment

Monday 29. December 2008 - Mitsubishi HiTec Paper Bielefeld GmbH is planning to shut down one of its two paper machines and four of its seven coating machines at the location by the middle of next year.

This move comes in response to drastic production cost increases in the affected segments. In particular, the increase in energy costs over the past few years has significantly worsened the business situation. Rising costs of raw materials, logistics and other areas have also had a negative impact on the economics of the industry. The fierce competition in the industry meant that these cost increases could not be compensated for by similar price increases on the international markets. Many companies in the paper industry have therefore reduced capacity or closed down entire plants.

The present capacity adjustment is part of a comprehensive cost-cutting project designed to critically review all divisions of the company. Many actions to improve the company’s efficiency have already been identified and are already being put into practice.

As part of the capacity adjustment, about 150 employees will have to be let go. The company is trying to implement this action in the most socially responsible way possible. Talks with employee representatives will be started now.