The Finnish-Swedish group Stora Enso will permanently shut down one of its two paper machines and the de-inking plant at the Hylte mill in Sweden. This machine, the PM3, produces standard newsprint (different from improved and specialty newsprint). After the restructuring, the site will be fully dedicated to the production of thermomechanical pulp (TMP) newsprint.
"The decline in global demand for newsprint continues due to changes in consumer behaviour and demand is not expected to recover. This has led to global overcapacity, low operating rates and low profitability at the Hylte mill" explains in a press release Kati ter Horst, Executive Vice President of the Group's Paper Division.
The Hylte mill currently operates two newsprint machines with an annual capacity of 480,000 tonnes. Production will continue on a single line for standard newsprint.
This shutdown will reduce the papermaker's annual newsprint capacity by 26% (i.e. 235?000 tonnes). This represents 4% of total newsprint capacity in Europe. And this closure will reduce Stora Enso's total paper capacity by 5%, the group says.
This reorganization of the plant will affect approximately 140 people. PM3 is expected to be closed by the end of 2020 and the DIP by the second quarter of 2021 at the latest. The group expects annual cost savings of 14 million euros.
"The measures envisaged would improve the competitiveness of the plant. In addition, Stora Enso has invested in the future of the site to produce formed fibre products and biocomposites", says Kati ter Horst.
Stora Enso will continue to produce standard newsprint at the Hylte, Langerbrugge and Sachsen mills.
