Rottneros needs to reduce its costs and prepare for the future, the group said. Negotiations with employee representatives are ongoing.
Sweden’s pulp producer Rottneros will reduce staff at the company’s Vallvik pulp mill and has given a redundancy notice to 24 employees. The company blames its decision on increasing costs, falling pulp prices and a weaker US dollar in the long term. The Vallvik mill produces bleached and unbleached softwood kraft pulp with a capacity of approximately 250,000 tpy.
“It may be difficult to understand that we have to lay off staff, but it is necessary for us to have a long-term profitable operation at Vallvik Mill,” said Lennart Eberleh, Rotneros’ President and CEO.
Last year, the company made 36 people redundant at the Rottneros mill when a fibre line producing groundwood pulp was shut down due to a declining market and increased costs. Rottneros mill specialises in CTMP production and is geared for a capacity of 120,000 tpy.