On Wednesday, January 20, 2021, paper machine 5 at the Ortviken mill in Sweden produced its last reel. SCA will stop all production of printing paper by the end of the quarter and switch to chemical-thermomechanical pulp.
Last August, the Swedish forestry group announced its decision to stop using printing paper, stating that the drop in demand in Western Europe - already at 5% per year since 2008 - had intensified with the coronavirus pandemic: demand for paper for magazines, catalogues and advertising had fallen by 30 to 40%. SCA had sales of around SEK 4 billion ('400 million) in this type of coated and uncoated paper with the three machines at the site.
The PM5 machine, which went into operation in 1985, had a capacity of 255?000 tonnes of paper per year. The mill's two other paper machines will be shut down in the first quarter of 2021, marking the end of publication paper production for the group. The closure of publication paper manufacturing will affect approximately 800 employees, mainly at the mill, but also at other sites.
New production in sight for Swedish plant
"Publishing paper is in a declining market and we are now exiting this sector entirely, allowing us to focus on products with healthy growth and good prospects", said Ulf Larsson, CEO of SCA, in August, referring to chemical-thermomechanical pulp (CTMP).
The group, which employs around 4,000 people, will invest SEK 1.45 billion (EUR 143 million) in the production of CTMP pulp for the tissue and packaging board markets at the Ortviken site. It aims to achieve a production capacity of 300?000 tonnes per year. This new production is scheduled to start in early 2023.
