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Sappi proposes closure of Blackburn mill

Helen Morris, printweek.com, 05 August 2008

Sappi Fine Paper Europe has announced it is has entered into consultation to close its Blackburn mill putting the jobs of 119 staff at risk.

The paper manufacturer said the Lancashire-based mill has been unable to generate acceptable returns or recover a sharp increase in costs of raw materials and energy over recent years.

It is also considering the closure of paper machine PM5 at its Maastricht mill in the Netherlands.

In a statement, Sappi said it has entered into a consultation period with staff representatives at both facilities, "with a view to cease production at Blackburn mill and PM5 at Maastricht mill".

The Blackburn mill has the capacity to produce 120,000 tonnes of coated woodfree paper a year for the web printing market. The PM5 machine at Maastricht has the capacity to produce 60,000 tonnes of speciality paper annually.

Sappi's UK sales office for coated fine paper will continue operations, as will the specialities sales and marketing organisation.

If the Blackburn and Maastricht production lines do cease to produce, the group said customers would be offered comparable products from other Sappi sites across Europe.

It said if the closure was to go ahead, the company's graphic coated fine paper capacity would be reduced by 190,000 tonnes.

Blackburn mill director Willy Heckers was unable to comment.

Comments

- 05 August 2008

Another blow to the market sector. There will be many more to come. See below.

The first estimate of Q2 GDP growth shows a UK economy slowing sharply, led by construction while leading indicators of Eurozone growth reached levels not seen since 2001. The ray of light in the gloom was a notable fall in the oil price.

In the UK, the first estimate of GDP for the second quarter was weak. The UK economy expanded at a meagre 0.2% q/q. This brings annual growth of UK plc to 1.6% y/y, down from 2.3% y/y previously, and the slowest pace of growth since 2005. The decline in construction (-0.7% q/q) is now impacting total economic growth. The service sector had a better quarter, (+0.4% q/q) but the annual pace of growth continued to slow - hardly surprising given the ongoing difficulties in financial and housing markets.

The question is whether trade, services and the consumer can keep the UK from contracting in Q3. This will be challenging given the ongoing decline in mortgage approvals. The British Bankers Association reported that mortgage approvals fell to 21k, a new record low and a quarter lower than last month (28k).

Retail sales caught the volatility bug in June – the largest monthly rise in sales volumes (+3.6% May) was followed by the `largest monthly fall `(-3.9%).

The three-month average rate provides a more representative picture. On this basis, although growth in retail sales volumes has eased to its slowest pace this year (+0.7% 3m/3m), it remains indicative of a steady slowdown rather than a collapse in demand. A further easing in retail sales will follow in the second half of this year, with evidence that prices rose on the high street for the first time in over a year in June.

Wake up to more strategy planning, take on board skilled and experienced people who understand recession and `management of change`.

Have passion to be successful with the `right` people and business models and you will survive.

Colin Thompson

Cavendish

www.cavendish-mr.org.uk

Jon Fennell - 05 August 2008

Colin leave it!! Sappi know what they are doing, they own the mill, this has nothing to do with bad management and more to do with price.

The UK has not been treasure island for the mills for a while, they would rather send the UK short by shifting tonnage to the North American Markets, where they get higher margin.

Blackburn, hasn't been right for a while, from what I understand.

The flip side of this story is that 'green' strategy becomes a farce as carbon footprint could be increased owing to lost local supply.

This closure would give Sappi more controls of UK supply and also the price through shortage. Take out capacity and go for premium rate (ironic I guess). Shortages look set to become worse, 190k tonnes is a large reduction, especially with other mills doing the same. This could be bad news for UK web, whether Blackburn was the source or not.

NDCT - 05 August 2008

Isn't it time the editor pulled the plug on all this arrogant pontificating?

If you can do it Colin, go and offer your services to Sappi - then come back when you've rescued it through 'strategic' management and tell us all how you did it.

JOshua McWilliam - 06 August 2008

maybe Colin should get a blog!

- 06 August 2008

To whom it may concern!

Something magic happens when we accept personal responsibility for our behaviour and our results.

But, it's not easy, because it's human nature to "pass the buck". I know there have been times in my life when my business was struggling where I found myself blaming others, blaming the economy, blaming this, blaming that! But as I've gotten older (and a little wiser) when things go wrong in my business, or my life, I can always find the culprit...in the mirror.

In every instance, it always comes back to choices I've made in my life that put me exactly where I am today. I have to say, that this one "tweak" in my attitude may sound like a little thing, but it has made a big difference in my life.

What does all this have to do with change? Plenty!

As a manager, one of the most important things you can do in times of change is to get your people to understand how their taking personal responsibility, their recognising problems as opportunities, will not only help the company, but will help them as individuals. In other words, sell the idea of...what's in it for them?

I share my list showing how each individual in the company can benefit by adopting a "personal accountability attitude":

You have more control over your destiny

You become an active contributor rather than a passive observer

Others look to you for leadership

You gain the reputation as a problem solver

You enhance your career opportunities

You enjoy the satisfaction that comes from getting things done...the power of positive doing

You experience less anger, frustration and helplessness - all leading to better physical health

You realise a positive spillover effect into your personal life at home

"YOUR FUTURE DEPENDS ON MANY THINGS, BUT MOSTLY YOURSELF."

Colin Thompson

Cavendish

www.cavendish-mr.org.uk

Jon Fennell - 06 August 2008

"YOUR FUTURE DEPENDS ON MANY THINGS, BUT MOSTLY YOURSELF."

In this case Colin it depends on Sappi as far as Blackburn in concerned.

Have you ever considered Yoga, or relaxation tapes? You articles have the right tone.

Maybe people who have lost their jobs in the industry draw faith on being positive on the dole, just by reading your enlightening words.

- 06 August 2008

"The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind!"

Businesses can improve their ability to attract, retain and improve productivity by applying the following five-step PRIDE process:

P - Provide a Positive Working Environment

R - Recognise, Reward and Reinforce the Right Behaviour

I - Involve and Engage

D - Develop Skills and Potential

E - Evaluate and Measure

Success is a journey, not a destination

Our goal is simple…to help you reach yours.

Colin Thompson

Cavendish

www.cavendish-mr.org.uk

Gary Smith - 06 August 2008

...asides from the tittle tattle going on... I have to say that Sappi as a business have to protect their business, if this means closing sites or shutting down machines, and if that affects the workforce and the local community, then I'm affraid so be it...harsh, but true. Maybe they could have changed the role of Blackburn Mill but not without a lot of investment, which no paper company in there right mind is going to do at the moment.

A lot of what Colin is saying is true but maybe in the individual - I've done it, starting on the presses and through the repro, DTP, production offices seeing an opportunity for a new offering for Redactive and given the green light to pursue it. That said, Sappi on the other hand being a huge organisation cannot move as quickly as the individual, change management can takes weeks and months to set up and manage through the process. But I do agree with Jon insomuch as this probably isn't the platform - maybe Colin could run a blog on here offering advise to managers and staff alike on change management and empowering oneself no doubt there's quite a few sould being made redundant now would seem a good idea for advise on change as a positive - someone tell 'Truth & Justice'???

Gary Smith

Redactive Print Mangement

Jon Fennell - 06 August 2008

Sappi and the other mills are suffering from the same over capacity as the rest of us. But unlike us they control output, as slow as they are to change they can also be a lot quicker. The mills will return to profits through increases in cost and reduction in overhead.

I guess we will have to hold our breath on increases, as the effect on clients is to reduce pagination and volume to compensate or turn to new media unless new budget is available.

Colin has his valid points but they always seem somewhat misplaced within the context of the of article.