The persistent global economic downturn is proving to be much tougher than anticipated with depressed markets, geopolitical instability and weak economic growth combining to put significant pressure on Sappi, particularly in Europe.
“In response we announced on 6 July 2023 the start of a consultation process on the possible closure of Stockstadt Mill. We have completed this process and agreed on the social plan for the employees. In addition, an agreement has been signed for the sale of the site. The closure of the site should be completed during the first calendar quarter of 2024. Once all closure elements are taken into account, the impact is expected to be cash neutral”, Sappi writes.
Sappi continues to be faced with significant overcapacity in graphic paper forcing us to take extended periods of costly commercial downtime. As the recent over-stocking by customers reduces it has become very clear that demand will not return to previous levels. Combined with input cost pressure, we do not see this situation, caused by factors beyond our control improving in the foreseeable future.
