Burgo slates more capacity closure in the woodfree coated paper segment; says CWF paper production at Avezzano mill scheduled for closure in January 2014.
Italy's fine and magazine paper manufacturer Burgo Group announced its decision to permanently halt coated woodfree paper (CWF) production at the Avezzano mill in Italy as of January next year. According to Burgo, the closure of the PM 2 is meant to tackle excess market supply, withdrawing 180,000 tpy of CWF paper capacity from the market.
"Burgo is in the process of reassessing all its production sites with the objective of optimising its product and logistics costs," the company said in the yesterday's press release. All customer demand for Burgo's CWF paper brands will be met from the company's Ardennes, Sora, Sarego and Toscolano mills, Burgo added.
Avezzano mill used to run two paper machines with a total installed capacity of 280,000 tpy of woodfree coated paper and one-side coated paper. The smaller of the two production lines, PM 1, had been shut down in July last year due to weakening market demand.
However, it seems there is still some hope for the Avezzano mill and its employees. Burgo explained it was currently evaluating alternative options for its Avezzano site, which could see the paper mill entering uncoated paper market.