Not only the paper industry is in distress over overcapacity, the supplying industries are as well. Paper chemical manufacturer Akzo Nobel adjusts to the lower demand by closing to production sites.
Akzo Nobel’s Pulp and Performance Chemicals business, formerly Eka Chemicals, plans to close the Trollhättan and Borås sizing manufacturing sites in Sweden. The company announced its plans to optimise its European supply chain for paper chemicals on 18 September.
Akzo Nobel wants to consolidate its manufacturing in Europe to be a more efficient and competitive supplier. “These efficiency-enhancing measures position us well to meet demand within the segment,” said Jay Hunsberger, Director Paper Chemicals Sales and Marketing in a statement. “Our remaining plants in Europe will allow us to stay competitive and serve our European customers with products that create value for them.”
The difficult market and global economic conditions make the current situation in Europe unsustainable, the company explained. These actions were necessary to remain competitive in this product line and would ensure that Akzo Nobel continued to be a strong supplier to its key customers in Europe.
The closures are part of the company’s strategy to drive key product and application developments in silica, retention and polymers, Akzo Nobel stated.
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