25 September 2009

HOLMEN TO CLOSE CUMBRIA BOARD MACHINE

Holmen has said it will be closing down one of its two board machines at the Workington Mill in Cumbria at the end of 2009

Installed in 1967, the machine scheduled for closure has an annual capacity of 70,000 tonnes of folding boxboard in the lower quality segments.

The machine closure will affect about 100 jobs at the mill. At the same time, the remaining board machine, with a capacity of 180,000 tpy, will be upgraded to produce an additional 20,000 tpy. This will result in the mill's current annual capacity being reduced by 50,000 to 200,000 tons — a volume better adapted to the market according to the company. The remaining machine produces folding boxboard in the higher quality segments. “This will make us even more competitive and further bolster our transition towards the highest quality segments,” said Magnus Hall, president and CEO of Holmen.