Sappi Europe has initiated a consultation process regarding a proposed partial restructure of operations at its Alfeld Mill in Germany.
The move follows continued financial pressures and a structural decline in demand for certain paper products across Europe.

According to the company, the proposed changes include the possible closure of Paper Machines 1 and 4, Offline Coater 2, and Sheet Finishing. The adjustment would aim to streamline operations and concentrate production on segments identified as more sustainable and economically viable.

The process may affect up to 200 positions. Sappi has stated that it will work with employee representatives to explore options and support affected staff throughout the transition.

The company noted that, while the Alfeld Mill has made progress in reducing operational losses, the complexity of its current product and asset mix has limited its ability to operate profitably under existing market conditions.

“The proposed changes are part of our efforts to align with evolving market expectations and to ensure the long-term competitiveness of our European operations,” said Marco Eikelenboom, CEO of Sappi Europe.

The restructure is also presented by Sappi as part of its broader alignment with the Clean Industrial Deal, aimed at reducing the environmental impact of its facilities and adapting to upcoming regulatory requirements.

Sappi indicated that the plan is intended to refocus production on the mill’s most efficient assets, with the goal of better matching supply to current market demand. The company also pointed to potential gains in sustainability performance and product portfolio simplification.

Located in Lower Saxony, the Alfeld Mill is part of Sappi’s European specialty paper network and has a long history of paper manufacturing.

The outcome of the consultation process will determine the final scope of the changes.

Source:  paperadvance.com