Poznan, Poland 19 November 2018 -- Fine paper capacities are to be taken from the market. Arctic Paper wants to close a 45,000 tpy machine in Sweden.

Polish fine paper manufacturer Arctic Paper has announced that it will idle one of its fine paper machines at the Swedish Grycksbo mill. The company said it had started negotiations with union representatives for the closure which is planned to be implemented during the first quarter of 2019. 25 positions may be affected by the move.

According to Arctic Paper, PM 7 at Grycksbo is the smallest of three paper machines at the non-integrated site. It has a capacity of 45,000 tpy of woodfree coated paper. The mill as a whole can produce up to 265,000 tpy of paper and curretly employs 340 people. "Capacity utlilsation on PM 7 has been low in recent years, and PM 7 is less efficient and more expensive to operate than the other two paper machines in Grycksbo, PM 9 and PM 10," the company commented. Per Skoglund, CEO of Arctic Paper, emphasised that the company was optimistic about the future of graphic paper, but that profitability of the Grycksbo mill had to be improved.

Arctic Paper operates a total of three paper mills in Grycksbo, Mundedals in Sweden and Kostrzyn in Poland. The combined capacity at the three mills exceeds 700,000 tpy of graphic paper. The group generates annual sales of around PLN3bn (about €695m) and employs more than 1,250 people.