Overcapacity has build up in the market for woodfree coated paper in Western Europe, which has led Lecta to temporarily switch off production at its Condat mill.
Spain's paper group Lecta will temporarily suspend production on PM 8 at its French Condat mill in Le Lardin Saint Lazare from the end of April. The company announced that the chronic decline in demand on the market for coated woodfree paper has intensified in the past months. Customer demand could be met from production on PM 4 at Condat or at other plants in the group, Lecta explained. The company said it would reevaluate the decision regarding PM 8 in the following months depending on the development of the market.
Lecta said it was also sticking to its conversion plans for PM 8 at the Condat mill, which involves rebuilding the production line for the manufacture of label paper and flexible packaging paper. This plan required further definition over the next few months, but promised better future prospects for the Condat mill than the woodfree coated paper market, said Lecta, which is already active in the label and flexible packaging paper market.
This is an excerpt of our report on the temporary stoppage of Condat's PM 8. Find the full article in EUWID Pulp and Paper issue no 12/2019, which will be available to our e-paper and print subscribers as of 20 March 2019.