In a strategic measure to strengthen its competitive position, Leipa is planning to reduce its production capacity for recycled graphic papers. In addition, investments at the Schrobenhausen mill will be adapted to the market environment.
The manufacturer of recovered fibre-based graphic papers said that operation of the older PM 1 at the Schwedt site will be discontinued by mid-2024. Production will focus on the technologically more advanced PM 4.
The closure of PM 1 will affect around 100 employees. Leipa is currently holding consultations with employee representatives.
The closure of the PM 1 is part of Leipa's strategy to streamline operations. Another measure affects the Schrobenhausen site, where investment volumes will be adapted to the current weak market environment, Leipa adds.
The company stated: "Leipa is taking proactive measures in a challenging market environment characterised by declining demand for graphic papers, a weak economy and the impact of political decisions in Germany and the EU. The adjustment and optimisation of production capacities is essential in order to remain a reliable business partner and employer in the long term."
