SCA intends to close down PM at Ortviken
SCA intends to close down a newsprint machine at Ortviken paper mill in Sundsvall, Sweden, and recognize an impairment loss for the mill.
“The global demand for publication paper has declined in recent years, particularly for newsprint, and we have weak profitability at Ortviken paper mill. By closing down our smallest and oldest paper machine, we will be able to focus on profitable orders for the more efficient paper machines", says Ulf Larsson, president, SCA Forest Products.
In conjunction with the closure of the paper machine, SCA intends to reduce staffing in production, transport and sales by approximately 95 positions. The efficiency improvement measures at the Obbola and Munksund kraftliner mills are intended to lead to staff reductions at the two mills by approximately 30 positions.
The closure, impairment loss and efficiency improvement measures entail total costs of approximately SEK 1,4 billion and will result in annual cost savings of about 180 million SEK.