After over two months of negotiations, Knauf has decided to shut down the Swedish Inlands Kartongbruk in Lilla Edet.
Inlands Kartongbruk will be shut down. Gypsum board manufacturer Knauf Danogips confirmed that negotiations with employee representatives have been wrapped up and that no feasible alternative had been found for the mill.
Inlands Kartongbruk in Lilla Edet is owned by German building materials manufacturer Knauf and produces recovered paper-based plasterboard liner with a capacity of roughly 65,000 t per year. The mill has been operating in the red for several years.
Back in January, when the employees were informed about the possible closure, mill manager Åke Andersröd told EUWID that 2011 was a particularly difficult year. The high cost of recovered paper in particular only exacerbated the mill’s poor economic standing. The strength of the Swedish currency also caused problems for the company as Inlands Kartongbruk invoices in euros but must settle its costs in Swedish krona.
Various options were considered for keeping the mill but, Knauf explained that there was no possibility of significantly increasing the size of the plant even with further investment as it is located on an island in the middle of the river Göta.
Inlands Kartongbruk delivers the bulk of its output to Knauf. External customers only account for less than 5% of the mill’s sales.