Increasing costs, falling pulp prices and a weaker USD in the long term are the reasons why 24 people have been given notice of redundancy at Vallvik Mill today.
- This is a tough message we have given to our staff today. We have a good year behind us, but as we look ahead, it is necessary to review our organisation in order to maintain stable operations going forward," says Lennart Eberleh, President and CEO.
The paper and pulp industry has generally had a good year in Sweden, but the Rottneros Group now needs to reduce its costs to prepare for the future.
- It may be difficult to understand that we have to lay off staff, but it is necessary for us to have a long-term profitable operation at Vallvik Mill, says Lennart Eberleh.
Last year, 36 people were made redundant at Rottneros Mill in Värmland when a pulp line was shut down due to a declining market and increased costs.
- As in Värmland, our aim is to have a respectful and considerate process. We know that the period from when information about the notice of layoffs is received until negotiations are completed and the redundancies are announced takes time and is worrisome for many. The primary focus now is on employees, says Ida Mörtsell, Director of HR and Communication.
Rottneros is an independent producer of market pulp. The Group comprises the parent company Rottneros AB, listed on Nasdaq Stockholm, and its subsidiaries Rottneros Bruk AB and Vallviks Bruk AB with operations involving the production and sale of market pulp. The Group also includes Rottneros Packaging AB, which manufactures fibre trays, the wood procurement company Rottneros Baltic SIA in Latvia and the forest operator Nykvist Skogs AB. The Group has about 319 employees and had a turnover of approximately 3,0 billion SEK in the 2022 financial year.