Rottneros mill to terminatre groundwood pulp production
The decision to terminater groundwood pulp production is due to the rapidly declining consumption of printing paper in Europe, which has led to a dramatic reduction in demand for groundwood pulp. CTMP production at Rottneros mill will continue, and limited investments will facilitate the development of quality for those customers that manufacture board at the same time as slightly increasing capacity.In 2011, Rottneros announced first an improvement program, which included the implementation of staff reductions, and second the book value of fixed assets was written down at Rottneros mill. These measures have now essentially been carried out, but unfortunately appear to be insufficient, according to a company spokesperson.The manufacture of groundwood pulp is expected to cease this winter, but the actual date depends on the outcome of union negotiations and also agreements with customers affected."It naturally feels very sad to have to conclude that the market for this product is shrinking. Thanks to raw materials and the high level of professional skills at the mill, we are producing a select and leading product in terms of quality, but this is still not enough," says Ole Terland, President of Rottneros AB."The improved preconditions for CTMP will make us a leading manufacturer in terms of quality, primarily for the board and packaging segment, which is where we see the greatest potential for customer value," says Olle Dahlin, Managing Director of Rottneros mill.The cut-backs at the groundwood mill will not affect the preconditions for the production of packaging within SilviPak and likewise for the potential manufacture of 'green' vehicle fuel at Rottneros mill.