Sappi has started a consultation process on the potential closure of its Lanaken Mill in Belgium, while also announcing that it has completed its consultation process on the possible closure of its Stockstadt Mill in Germany.
The persistent global economic downturn is proving to be much tougher than anticipated, putting significant pressure on Sappi. The company has closed its Stockstadt Mill, and has commenced consultation on the potential closure of its Lanaken Mill.
The persistent global economic downturn is proving to be much tougher than anticipated with depressed markets, geopolitical instability and weak economic growth combining to put significant pressure on Sappi, particularly in Europe.
Sappi to Close Stockstadt Mill; Begins Consultation Process on Future of Lanaken Mill paperage.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from paperage.com Daily Mail and Mail on Sunday newspapers.
Commenting on the group’s results, Sappi Chief Executive Officer Steve Binnie said: “Following the record profitability achieved last year, the group faced persistent challenges in the global economy and encountered ongoing weakness in paper and pulp markets. Specifically, the paper businesses experienced a significant downstream destocking cycle. Customers reduced their inventories in anticipation of lower prices, thereby affecting demand.