Sappi statement re: Sappi Finland I Oy and Kangas
October 22 2009 - 7:05AM
UK Regulatory
TIDMSAZ
RNS Number : 2292B
Sappi Ld
22 October 2009
+-----------------------------------------------------------+---------------------+
| | Limited |
| | Fine Paper Europe |
+-----------------------------------------------------------+---------------------+
Press Release
22 October 2009
Sappi Finland I Oy begins consultations at Kangas mill in response to market
conditions and lower demand in coated magazine paper
In response to the reduction in European consumption of coated magazine paper
arising from the global recession it is apparent that the industry is
experiencing overcapacity. Sappi has taken a substantial amount of commercial
downtime since the beginning of the year in response to a reduction in demand.
Sappi Finland I Oy has today announced that it will enter into a consultation
process with its Kangas mill employee representatives. The aim of this process
is to identify the best way of improving company profitability, which may
include a full closure of Kangas mill. The continued level of downtime is no
longer considered viable and it is therefore necessary to review production
capacity. Possible redundancies would be implemented by the end of the year
2009.
The Sappi Finland I Oy's, Kangas site employs around 150 employees. Sappi
employs around 800 people in Finland.
In the event that the Kangas mill ceases production the Galerie Silk range would
be supplied to customers from the Sappi Lanaken mill in Belgium. Sappi would
also launch a complementary grade, Galerie Fine Silk, from Sappi Finland I Oy's,
Kirkniemi mill thereby widening the customer offer of its coated magazine paper
range while ensuring that there is no supply interruption.
Kangas mill, has the capacity to produce 210,000 tonnes of coated magazine paper
annually. The consultation does not concern Sappi Finland I Oy's Kirkniemi mill
and its Sales Office.
END
Issued by:
Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax + 27 11 268 5747
For further information contact:
+---------------------------------------+---------------------------------------+
| Anders Ek | Martti Savelainen |
| Mill Director | Mill Director |
| Sappi Finland I Oy | Sappi Finland I Oy |
| Kangas Mill | Kirkniemi Mill |
| Tel +358 1046 45261 | Tel + +358 10 464 2475 |
| Mobile +358 50 307 1103 | Mobile +358 505 987 621 |
| Email :anders.ek@sappi.com | Email: martti.savelainen@sappi.com |
| | |
+---------------------------------------+---------------------------------------+
+---------------------------------------+---------------------------------------+
| Claudia Hammerich | André F Oberholzer |
| Manager Corporate Communications | Group Head Corporate Affairs |
| Sappi Fine Paper Europe | Sappi Limited |
| Tel: +32 2 676 97 84 | Tel: +27 11 407 8044 |
| Mobile: +32 472 61 89 66 | Mobile: +27 83 235 2973 |
| claudia.hammerich@sappi.com | andre.oberholzer@sappi.com |
| | |
+---------------------------------------+---------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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