Rottneros is giving notice of redundancy for 47 people, most of those affected are working at Rottneros Mill in Sunne, Sweden.
Last year, the price for pulp wood increased by 15%, while the price of electricity continued to be at high levels. In addition, the dollar exchange rate has fallen. This has meant that the price of Swedish mechanical pulp has not been competitive on the world market and that sales have declined. These three factors together have forced the Group to make a quick and painful decision to survive through the recession.
“Since it is at Rottneros Mill that we produce mechanical pulp, this is unfortunately where the biggest reductions need to be made. The big investments we have made in the mill over the past two years show that we have a long-term belief in the future. There is a strong market for high-quality pulp for paperboard in the world, but right now all parameters are wrong for us to be able to produce at competitive prices,” says Lennart Eberleh, CEO, Rottneros.
Rottneros is an independent producer of market pulp.
