Arjowiggins to close Danish mill due to declining paper demand

Arjowiggins Graphic is to shut down its Dalum mill in Odense, Denmark, by the end of 2012.

The mill currently produces 100,000 tons of paper a year and runs two high-capacity paper machines.

The paper manufacturer has said that it is closing the mill to align the company’s capacity with the decline in European paper demand, which has been decreasing by around 6% annually for several years.

Production of the Cyclus and RePrint recycled paper brands will be transferred to Arjowiggins’ French mills, Le Bourray, Wiszerne and Bessé-sur-Braye. The Château-Thierry-based Greenfield mill has recently undergone renovations to expand its annual output to 150,000 tons by December.

There are 260 staff at the mill, 225 of which will be affected by the closure and are in negotiations with Arjowiggins.

Their fate is expected to be decided by October but the remaining 35 will remain on site to cover customer service and administrative topics.

Arjowiggins is currently looking for a bidder to take on the building and its machines, but said potential buyers would only be considered if they are not competitors to the paper company.