In a statement released on Wednesday (12 April), the company said that while the paper and pulp industry “has generally had a good year in Sweden”, the Rottneros Group needs to reduce its costs “to prepare for the future”.
Lennart Eberleh, president and CEO, said: “This is a tough message we have given to our staff today. We have a good year behind us, but as we look ahead, it is necessary to review our organisation in order to maintain stable operations going forward.
“It may be difficult to understand that we have to lay off staff, but it is necessary for us to have a long-term profitable operation at Vallvik Mill.”
Located in Hälsingland, the Vallvik Mill dates from 1908 and currently employs 180 staff. The mill manufactures long-fibre chemical sulphate pulps. In 2021, 222,400 tonnes of pulp were produced at the mill.
Last year, 36 people were made redundant at the company’s Rottneros Mill in Värmland when a pulp line was shut down due to a declining market and increased costs.
The Rottneros Mill focuses on the development and production of CTMP (Chemi-Thermo-Mechanical Pulp), which is used in the production of board, packaging, tissue, filters, writing, and printing paper.
At the company’s Rottneros Packaging business, also based in Värmland, high-quality food packaging is produced.
Ida Mörtsell, director of HR and communication, said the company’s aim with the latest round of redundancies was “to have a respectful and considerate process”.
“We know that the period from when information about the notice of layoffs is received until negotiations are completed and the redundancies are announced takes time and is worrisome for many. The primary focus now is on employees.”
Rottneros Group currently employs around 319 staff and had sales of around SEK 2.3bn (£179.4m) in its financial year 2022.
It has been another turbulent week for the European pulp and paper industry. Earlier in the week, Mondi said job losses were expected as it refocuses operations at its Neusiedler uncoated fine paper mill in Austria.
