Sappi Fine Paper Europe begins consultations regarding the future of its Nijmegen Mill in the Netherlands. Action required in response to market conditions and sustained increase in input costs

Sep 30, 2013, 08:17 ET from Sappi Limited

BRUSSELS, Sept. 30, 2013 /PRNewswire/ -- As a result of the continued market decline and consequent overcapacity in the European coated paper markets, combined with high raw material costs not compensated for by higher selling prices, Sappi has generated a loss in its European activities.

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To return its European operations to profitability, Sappi has undertaken a review of its European production assets and has identified the need to concentrate its production at fewer sites. Exhaustive analysis has indicated that the preferred option would be to relocate the entire production of Nijmegen Mill to other Sappi mills in Europe. The aim of this action would be to optimise Sappi's entire Heat Set Web Offset (HSWO) business.

In order to identify possible alternatives for the future of the Nijmegen Mill, Sappi Fine Paper Europe (SFPE) has today initiated a process of consultations with its Nijmegen Mill employee representatives and social partners as well as the works council.

Should the relocation go ahead, SFPE capacity for WFC reels would reduce by 240,000 tons.

The mill currently employs 192 people.

Issued by:

Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax +27 11 268 5747

For further information contact:

With regard to the decision of Sappi Fine Paper Europe:

Mat J H  Quaedvlieg
Director Manufacturing
Sappi Fine Paper Europe
Tel +32 2 67 69 703
Mobile: +32 495 588 703

With regard to the next operational steps in the mill:

Wayne Thomas
Mill Director
Sappi Fine Paper Europe – Nijmegen Mill
Tel +31 24 3710 600
Mobile +31 6 4623 3406

Corporate Communications :

Marjolein Vile   
Manager Corporate Communications           
Sappi Fine Paper Europe  
Tel +32 2 676 97 86 
Mobile +32 497 59 35 53                              

Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel + 27 11 407 8044
Mobile + 27 83 235 2973

SOURCE Sappi Limited