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Iggesund Paperboard wraps up personnel reduction in the UK, takes downtime in Sweden

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Iggesund Paperboard wraps up personnel reduction in the UK, takes downtime in Sweden

May 21, 2014 - 02:00

BRUSSELS, May 21, 2014 (RISI) -Holmen's packaging arm Iggesund Paperboard has finalized a program to cut back on personnel at its Workington mill in the UK, lowering the site's salary costs by around 10%, Holmen president and CEO Henrik Sjölund said in a presentation of the firm's results in early May.

A company spokesperson added that the headcount reduction has been carried out through a combination of retirement, restrictively filling positions of those who have retired and not filling open positions. She declined to say exactly how many jobs had been taken out this way or how much money this has saved in Swedish krona terms. Last year, the Workington mill had an average of 416 employees.

The Workington mill has a capacity of some 200,000 tonnes/yr of folding boxboard on one PM.

Maintenance downtime in May:Iggesund Paperboard carried out its annual maintenance shutdown at the Iggesund mill in Sweden on May 1-8. Sjölund said the direct costs from this downtime would amount to roughly SEK 40 million ($6 million) and that the firm would lose sales equivalent to some SEK 30 million during that time.

The company is still in the process of gradually reducing the workforce at the Swedish factory from 900 to 800 by January 2015.

The Iggesund mill can churn out some 340,000 tonnes/yr solid bleached board and plastic-coated paperboard on two PMs.