Swedish forest products major Svenska Cellulosa Aktiebolaget (SCA) has confirmed that it will go ahead will its restructuring plan for its Ortviken paper mill in Sundsvall, Sweden to discontinue the production of publication paper and to invest SEK 1.45 billion (≈ EUR 139.43 million) in the production of chemically pre-treated thermo-mechanical pulp (CTMP). The decision has been preceded by consultations with employee representatives.
The proposed restructuring plan for Ortviken paper mill in Sundsvall, Sweden was announced on August 26, 2020. Following the conclusion of negotiations with employee representatives regarding the closure of publication paper production, consultations will now commence regarding the consequences of this closure for the employees.
Approximately 800 employees are affected, most of whom are located at the Ortviken paper mill.
Publication paper is a product with a declining market and we now entirely leave this product area, this enables us to focus on products with healthy growth and good prospects for the future. The plans we are now carrying out will have a significant impact and now, together with representatives of our employees, we will seek the best possible solutions for those affected said Ulf Larsson, CEO, SCA.