Sappi to curtail fine paper production in Europe
Dec 9 2008 South African Sappi plans to curtail its fine paper production in Europe and to increase prices.
Sappi's decision to curtail its fine paper production in the coming months is motivated by the weak market situation and increasing input costs.
Sappi Fine Paper Europe is the biggest producer of coated fine paper in Europe. Recently, Sappi acquired four paper mills from M-real - Kirkniemi and Kangas mills in Finland, Stockstadt mill in Germany, and Biberist in Switzerland. Furthermore, coated fine paper produced by M-real's Husum and Äänekoski mills will be sold through Sappi's sales organization.
In November, the European competition authority approved the acquisition, and the deal is expected to be closed in the beginning of next year.
It is not yet known how and where Sappi's production curtailments will be implemented. /AA