Norske Skog is closing one of two machines at its mill in Duisberg, Germany.
The company says production at the PM4 machine at Norske Skog Walsum will “permanently cease” at the end of this year.
One of two machines rebuilt in the early 1990s to produce lightweight coated stocks, it produced 225,000 tonnes a year. The other machine, PM10, will continue to produce LWC, with annual production capacity of 200,000 tonnes.
President and chief executive Sven Ombudstvedt says there is no option, given overcapacity in the market for coated mechanical magazine paper, and unprofitable operations at the mill: “Despite considerable efforts from the employees to reduce costs, the decision is unfortunately inevitable,” he says.
Customers will receive deliveries from other Norske Skog mills and paper machines, and the company says all existing supply commitments will be honoured.
The Walsum mill was founded in 1962 with one paper machine.