The packaging industry has been dealt another blow with the news that Stora Enso is to close its loss-making Newton Kyme mill in North Yorkshire.
The closure will mean the loss of 170 jobs and the removal of Newton Kyme's 40,000tpa capacity of folding boxboard.
Niilo Poyhonen, senior vice president of Stora Enso's packaging division, said: "The mill has been making a loss for many years. Now the time has come to face reality."
Poyhonen said the company had entered into a 90-day negotiation period with union representatives to discuss the employees' futures.
Newton Kyme mill manager Jim Smith was clearly embittered: "We did everything that has been asked of us at the mill, but due to rising prices, especially in pulp, which we have not been able to pass on, coupled with the strength of sterling, we have been forced to close.
"All of the large players such as Field and Crest buy from us and they will now go to Europe for their supply. You can bet that the Europeans, who have been cutting their prices, will now raise them."
The mill is scheduled for closure in mid-January 2001. Poyhonen said the site could be sold to a developer, or hinted that "other options may arise".
Story by Andy Scott
Have your say in the Printweek Poll
Related stories
Latest comments
"Good luck for the future Peter, everyone in the industry looks up to you!"
"Daisy Duke
19 hours ago
The end of an era. I was at Broadprint in the early 90’s and we produced literally millions of dm packs for them. The great Roger Rushton was the sales director for Readers...."
"When I was at print college in Gloucester, in the mid seventies, we had a group visit to Hazel Watson and Viney in Aylesbury. It was printing the readers digest. The machine was absolutely huge and..."
Up next...
'Significant opportunity for growth'
PCP under new ownership
Nearly seven years with the business
Peter Jolly to leave HP
Better news at acquired software businesses
Works Manchester collapse hits Nettl results
2,650 organisations challenged