Sappi considers closure of PM 2 at its Stockstadt mill

Photo copyright by Sappi
11 Feb 2020 − 

Structually declining demand is taking its toll: 240,000 tpy of woodfree coated paper output capacity are to be eliminated.

Sappi is planning to shut down PM 2 for woodfree coated paper at its Stockstadt mill in southern Germany due to the ongoing structural change in international graphic paper markets. The company said that there was a continuing and accelerating structural drop in demand for coated paper in Europe and elsewhere which makes it impossible for Sappi to fill its capacities adequately and to be sufficiently profitable in its current form. In order to adjust its capacity in line with market demand the company is considering to operate fewer machines and to relocate production output of PM 2 at its Stockstadt mill to other Sappi machines in Europe. Sappi has begun a process of consultation with employee representatives at the Stockstadt mill, with the task to identify viable alternatives for the paper machine.

PM 2 is geared for the production of about 240,000 tpy of coated graphic paper. The mill employs 760 people, of which up to 150 positions may be impacted by the consultations and the closure. The mill runs a second paper machine, also for woodfree paper, the two machines have combined capacity of 445,000 uncoated and coated woodfree paper. In addition, the mill comprises a 145,000 tpy bleached chemical pulp line.

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