Dalum Papir to be closed down
Arjowiggins has presented the social partners and employees with its plans to close Dalum Papir in Denmark (graphic papers), the Ivybridge plant in the UK (papers used for security documents, creative papers) and the Witcel plant in Argentina (creative papers).The closure of the Dalum and Witcel plants should be effective by the end of 2012, and the closure of the Ivybridge plant in the beginning of 2014. Around 430 employees are concerned.The particularly tough conditions the paper industry has faced since 2008 have accelerated the fall in demand for graphic papers, with the market contracting by approximately six percent every year, Sequana, owner of Arjowiggins, writes in a press release.Given the structural decline and overcapacity on the market, and following the shutting down of a machine at Chartham mill (creative papers) in the UK in August, Arjowiggins has decided to continue to adjust its capacity in line with demand.These capacity reductions represent a total of 126,000 tons (including 103,000 tons for Dalum Papir), or around ten percent of the group's total production capacity. Thanks to the flexibility of Arjowiggins' production model, all product ranges concerned will be transferred and manufactured at other group plants in France, the UK and Brazil.Dalum Papir was founded in 1874. The mill was part of the Swedish Stora group, now Stora Enso, during the 1990s.Following the closure of Dalum Papir, there will be only one paper mill in Denmark, Skjern Papirfabrik, producing some 55,000 tons of board with approximately 75 employees.