Sep 14, 2012. /Lesprom Network/. Sequana is continuing to deploy its strategy in line with the plan unveiled in July 2012 at the time of the Euro 150 million capital increase that helped to bolster its financial structure, as the company said in the press release received by Lesprom Network. Consequently, Arjowiggins has presented the social partners and employees with its plans to close the Dalum Papir A/S plant in Denmark (graphic papers), the Ivybridge plant in the UK (papers used for security documents, creative papers) and the Witcel plant in Argentina (creative papers). The particularly tough conditions the paper industry has faced since 2008 have accelerated the fall in demand for graphic papers, with the market contracting by approximately 6% every year. Given the structural decline and overcapacity on the market, and following the shutting down of a machine at the Chartham plant (creative papers) in the UK in August 2012, Arjowiggins has decided to continue to adjust its capacity in line with demand and to close its Dalum Papir A/S, Ivybridge and Witcel plants. These capacity reductions represent a total of 126,000 tonnes (including 103,000 tonnes for Dalum Papir A/S), or around 10% of the group’s total production capacity. Thanks to the flexibility of Arjowiggins’ production model, all product ranges concerned will be transferred and manufactured at other group plants in France, the UK and Brazil. The closure of the Dalum Papir A/S and Witcel plants should be effective by the end of 2012, and the closure of the Ivybridge plant in the 1Q 2014. Around 430 employees are concerned. Approximately Euro 25 million will be booked in the third quarter of 2012 to reflect these restructuring operations. Around Euro 8 million of this amount will be disbursed in the last three months of 2012 and most of the remaining balance in 2013. The restructuring measures will result in full-year net cost savings of around Euro 17 million, the bulk of which will be generated beginning in 2013. Sequana is a global player in the paper industry with a presence over 5 continents in more than 44 countries, the company operates in the distribution (representing two thirds of its sales) and production of papers.