Stora Enso in talks to shut down newsprint PM 3 at Hylte mill

Stack of newspaper.
PM 3 closure to reduce Stora Enso's newsprint
capacity by 26 %, Photo courtesy of Stora Enso
16 Sep 2020 − 

Newsprint production at Hylte mill is to be continued on one paper machine using thermomechanical pulp (TMP) only.

Stora Enso plans to stop operations on newsprint machine PM 3 and discontinue de-inked pulp (DIP) production at the Hylte mill in Sweden. The reorganisation of the Hylte mill would affect up to 140 employees, the company announced in a statement on Wednesday morning.

Stora Enso blames its decison on the decline in global newsprint demand, which is not expected to recover due to changes in consumer behaviour. According to Stora Enso this results in "global overcapacity, low operating rates, and poor profitability at the Hylte mill."

Hylte mill currentlyy runs two paper machines with a total capacity of 480,000 tpy of standard newsprint. The closure of the PM 3 is planned by the end of 2020.

At the end of August, SCA revealed it plan to shut down publication paper production at the Ortviken mill and exit the market. The very same day, UPM-Kymmene announced it pland to close production capacities in Finland and the UK.

This article is part of our coverage on Stora Enso and the publication paper markets in Europe.

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