The RDM Group (Reno de Medici) has announced its intention to discontinue production at its mill in Castellbisbal, near Barcelona.
The facility, which has the capacity to produce up to 190,000 tpy of white-lined chipboard and employs 237 people, is facing closure due to challenging market conditions.
The decision comes amid a sharp decline in demand in Iberia and the mill's unsustainable cost structure, which relies on operating at full capacity to avoid losses, according to RDM.
Despite investments since 2019 to improve efficiency and competitiveness, the mill has continued to face declining sales and production challenges. As a result, RDM is adjusting its production capacity and is engaging in talks with labour representatives.
This step follows the closure of RDM's Blendecques mill in France in 2024.
RDM Group said it would continue to operate in Iberia through the more flexible Paprinsa Mill in Mollerussa, which enables the company to strengthen competitiveness and better adapt to the current and future expected sector's dynamics.
