Paper company will idle one paper machine starting the second half of December 2013.
The European-based paper company Norske Skog has announced that it will temporarily idle one of its paper machines at its Walsum paper mill in Germany by the second half of December. The company did not say how long it would idle the machine.
The company cites excess capacity in the coated mechanical paper market as the reason for the shutdown. The machine has an annual capacity of 225,000 metric tons. The mill’s second machine, which produces lightweight coated magazine paper, will continue to operate at the site. That machine has an annual capacity of 200,000 metric tons.
The company says the temporary idling of capacity is needed to bring supply and demand into balance, while avoiding unprofitable production at the mill. Sven Ombudstvedt, CEO and president of Norske Skog, says that despite years of great efforts of the staff to reduce costs, the decision is unfortunately unavoidable. The company adds that customers will be served from other Norske Skog mills and paper machines and all existing supply commitments will be honored.