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Holmen’s PM closures to take place in September

Holmen's Hallsta paper mill
Source: Holmen
21 May 2013 − 

The capacity closures at Holmen's Hallsta and Braviken printing paper mills will be implemented in September. The company also plans temporary capacity reductions in Q3.

Holmen has set the date for the planned machine closures in Sweden. The company reported it would shut down PM 3 at the Hallsta mill and PM 51 at the Braviken mill towards the end of September. Furthermore, Holmen plans to temporarily reduce its available capacity in Sweden by 10 % during the third quarter due to conversion and adaptation to the new structure.

When explaining the decision, Holmen pointed to considerable losses in the business. "The extensive capacity cuts announced will gradually lead to a better market balance in 2013,” said Henrik Sjölund, head of Holmen Paper.

PM 3 at the Hallsta mill has an annual capacity of 140,000 t of SC paper. The site houses two other machines which produce machine-finished magazine paper and book paper with a combined capacity of 525,000 tpy. Recently, Holmen also announced it would invest SEK200m in energy efficiency improvements at the mill by summer 2014.

With the closure of PM 51 at Braviken, Holmen reduces its newsprint capacities at the mill by 200,000 tpy. Besides newsprint, the site also manufactures machine-finished magazine paper and directory paper. Following the PM closure, the paper mill will operate two machines with a combined capacity of almost 600,000 tpy of printing paper.

Once the capacity changes would be completed, the company’s Swedish units would be able to produce 1.15 million t of printing paper, of which 75% would be specialty paper, Holmen said in an earlier announcement. Holmen reportedly intends to increase the focus of its Swedish operations on specialty paper grades.

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