Spanish producer of fine and specialty papers Lecta is responding to high production costs by taking downtime. The company announced it would temporarily stop production at several of its paper mills. It did not specify which mills will be affected and when the stoppages will take place.
"The current market environment is characterised by very high production costs, in particular energy costs, and weaker demand primarily due to destocking in the value chain," the company said, explaining the measure. The service for customers will be maintained. Lecta added it remained nevertheless confident in its financial outlook for the fourth quarter.
Lecta is a producer of specialty papers for labels and flexible packaging as well as coated and uncoated paper for publishing and commercial printing, amongst others. The company operates seven paper mills in Spain, France and Italy, which have a combined capacity of around 1.7 million tpy. It also has several sales offices around the world. Lecta employs a total of nearly 3,000 people.