Paper production at Burgo Duino mill was down for three weeks due to weak market demand and lack of orders. Production resumed on 6 November, say employee representatives.
Paper production at Burgo‘s Duino magazine paper mill in Italy was down for three weeks due to weak market demand and a lack of orders. Production was halted on 17 October and the downtime was originally planned to last until 27 October. However, the company decided to extend it for ten more days. Paper production was resumed as of 6 November, said employee representatives.
The Duino mill near Trieste houses one paper machine which produces coated magazine paper MWC and LWC for offset and rotogravure printing. The machine has a wire width of 8.25 m and operates at a maximum construction speed of 1,300 m/min. The company puts the PM’s production capacity at 205,000 tpy.
The Burgo Duino paper mill employs approximately 220 people. The three-week downtime and temporary layoffs were covered by short-time working allowances under Italy’s wage guarantee fund scheme (cassa integrazione guadagni), according to Burgo and trade union representatives.
Last August, Burgo has agreed to divest the Duino mill to the international paper and packaging company Mondi for €40m. The transaction is scheduled for completion by the end of the year.
Mondi plans to rebuild and convert the mill’s paper machine from magazine paper to recycled corrugated case material production. However, the mill is said to continue producing LWC and MWC through 2023 with Burgo managing sales and customer service.