Duni to shut down tissue production unit


Duni plans to discontinue part of the business of its Rexcell Tissue & Airlaid subsidiary. The company announced it would shut down one of the three production units.

Swedish tissue product manufacturer Duni has announced the closure of a production unit of its Rexcell Tissue & Airlaid subsidiary. The plant produces and sells tissue for the hygiene products sector. Duni expects the unit to be fully closed in the first quarter of 2014.

The company explained that the unit was not profitable and was not expected to achieve acceptable returns in the foreseeable future either. The closure resulted in one-off costs totalling SEK83m which had been incurred in the fourth quarter of 2012, the company said, adding that however, Duni's net debt would fall in the long-term.

Duni's tissue business is concentrated in the Rexcell Tissue & Airlaid subsidiary. Rexcell currently operates three production units in two plants located in Skåpafors and Dals Långed, Sweden. The company produces tissue and airlaid for Duni's table top products, but half of the production is sold to external customers within the hygiene products sector.

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