Swedish Klippan to close cardboard operations in Molndal
Dec 15, 2005. Swedish paper maker Klippan AB said it will close down its remaining cardboard-cutting operations at the Molndal mill in western Sweden in 2006.
Dec 15, 2005. /Lesprom Network/. Swedish paper maker Klippan AB said it will close down its remaining cardboard-cutting operations at the Molndal mill in western Sweden in 2006. The move is aimed at a further reduction of the company's costs and is part of a comprehensive restructuring of Klippan's activities in Molndal, which has been ongoing in 2005. It includes the closure of its paper manufacturing in December 2005. Parts of the Molndal operations were relocated to the mills in Klippan and Lessebo, both in southern Sweden, in the autumn of 2005.
According to a decision of the board of directors, Klippan will start negotiations with the trade unions in Molndal.
Klippan widened its after-tax loss to SEK 217.5 million ($26.8 million) in the first nine months of 2005 from SEK 49.6 million ($6.1 million) in the same period of 2004.
Klippan's three paper mills in Sweden have a combined production capacity of 200 000 tonnes annually. The company also has a paper mill in Scotland with a capacity of 30 000 tonnes per year.