Brief: Nordic Paper To Restructure Säffle Plant

Nordic Paper Holding AB

28/04/2021 06:39

April 28 (Reuters) - Nordic Paper Holding AB  NPAPER.ST :
    * INITIATES CONSULTATIONS FOR A DISCONTINUATION OF PULP PRODUCTION IN SÄFFLE AND DECIDES ON
INVESTMENT
    * INTENTION IS TO DISCONTINUE PRODUCTION OF PULP AT PLANT DURING Q4 2021 AND REPLACE IT WITH
PURCHASED EXTERNAL PULP
    * DECISION HAS ALSO BEEN MADE REGARDING INVESTMENT OF APPROXIMATELY SEK 70M IN PLANT
    * PLANNED MEASURES ENABLE AN INCREASE OF APPROXIMATELY 10% OF NATURAL GREASEPROOF PAPER
PRODUCTION
CAPACITY OF PLANT
    * INVESTMENT AIMED AT INCREASING EFFICIENCY IN HANDLING OF EXTERNAL PULP AND WILL BE CARRIED
OUT
MAINLY DURING 2021
    * NORDIC PAPER SÄFFLE PLANT TODAY CONSISTS OF ONE PULP PRODUCTION LINE AND TWO PAPER
MACHINES
PRODUCING NATURAL GREASEPROOF PAPERS
    * WITH A CURRENT PAPER PRODUCTION CAPACITY OF 33,000 TONNES PER YEAR, PLANT IS ONE OF
LARGEST
GREASEPROOF PAPER PLANTS IN WORLD
    * NORDIC PAPER ESTIMATES THAT STAFFING WOULD BE REDUCED BY ABOUT 20 POSITIONS
    * SEES FIXED COSTS, EX. DEPRECIATION, OF PLANT WOULD BE REDUCED BY ABOUT SEK 30-40M ON
ANNUAL
BASIS AT FULL UTILISATION OF PRODUCTION CAPACITY
    *  AS A RESULT OF A DISCONTINUATION OF PULP PRODUCTION, ONE-OFF EFFECTS OF SEK 110M WILL BE
INCURRED OF WHICH APPROXIMATELY SEK 80M ARE RESERVATIONS RELATED TO REMEDIATION OF BUILDINGS AND
LAND AND APPROXIMATELY SEK 30M ARE WRITE-DOWNS OF EXISTING PULP LINE.

Source text for Eikon:  ID:nWkr9Ydbdk 
Further company coverage:  NPAPER.ST 

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