Cascades to close down Djupafors plant in late June
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The end is nearing for Cascades's only Swedish site. The company has set a date for the closure of its Djupafors cartonboard plant which has a capacity of 60,000 tpy.
Cascades plans to shut down production at its Swedish cartonboard plant Djupafors on 30 June this year. The consultation process with the unions, started in late February, had now been finalised, said the company. This means that 60,000 tpy of cartonboard capacity will be taken from the market. The Canadian packaging and tissue firm pointed out that agreements had been reached with a number of customers who will be served by the Cascades plant in La Rochette, France in the future.
Cascades blames its decision to close the site on weak market conditions. "The current economic situation in Europe is forcing us to reorganise our European production activities in order to compete," said Mario Plourde, the company's President and CEO.
The Djupafors plant is located in Ronneby in southern Sweden and produces GC cartonboard on one machine with a capacity of 60,000 tpy. Cascades employs 130 people at the site which is the company's only Swedish site. Within Europe, the manufacturer is active on the French market via its subsidiary Cascades Rollpack and its La Rochette plant.
Source: EUWID Paper
