The Smurfit Kappa Group plans to permanently close its less efficient containerboard capacity and reduce 2008 production through market related downtime. The company’s objective is to reduce operating costs and maximize the continuing efficiency of its mill system.
The Valladolid recycled containerboard mill in northern Spain will close in the second quarter of 2008. It has an annual capacity of 130,000t and the closure will have the effect of reducing recycled capacity by 70,000t this year. In addition, SKG will take up to 80,000t of market related downtime (the majority of it during March-April 2008) to optimize the group’s supply-demand balance and to address an increase in inventory levels of recycled containerboard.
The group says it will continue to review its production capacity, the cost profile of its mills relative to integration requirements, broader market demand and industry inventory levels.
| Contact |
| Smurfit Kappa Group |
