FRANCE (News release) -- Ahlstrom-Munksjö contemplates a plan to optimize its production capacity and product offering to meet the profitable demand and investigates the closure of one paper machine (PM1) in Stenay, France. Employee consultation processes will start on October 30, 2018, and are expected to be completed in January 2019.
One-side coated product segment, a part of the Food Packaging business in the Specialties business area, is a segment where the markets have significant overcapacity globally, especially in Europe and the company's offering is not optimally aligned with the strategy of niche orientation in customized solutions.
While Ahlstrom-Munksjö has proceeded with key measures to improve the situation, the operating environment has further deteriorated mainly due to increased raw material costs.
By concentrating orders to the larger paper machine (PM3) at the Stenay plant, cost savings can also be achieved from higher raw material, energy and waste efficiency, as well as improved inventory management.
Annual impact of the planned turnaround program would be approximately Euro 13 million. Restructuring costs will be specified during the process.
The Stenay plant manufactures one-side coated grades for label and graphic applications as well as paper for the food packaging industry. The Stenay plant, located in the northeastern part of France, has approximately 200 employees.