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Orkla ASA (OSL:ORK) Borregaard intends to close its pulp mill in Switzerland. During recent years the business has experienced financial losses, and is now in a demanding situation both regarding its cost position and market conditions. The outlook for the company indicates continued losses, and therefore a process to close the mill in December of this year has been initiated.
- We regret this serious situation for the company and the difficulties this will create for our employees. During the last few years we have worked hard to improve the situation, but we have to realise that the mill is not profitable in today's market situation, says Borregaard's President & CEO, Per Sørlie.
Borregaard's business in Switzerland had a turnover in 2007 of EUR 105 million. The company's competitive position has developed negatively and despite notable improvements, substantial investments are necessary to specialise the mill further. In addition, the mill in Switzerland has experienced a strong increase in raw material and energy costs, and the market development for important product segments have had a negative development in recent months. Prospects show no signs of improvement for the company.
Borregaard will establish financial support and offer practical assistance to find new jobs for the 450 employees.
Contact person: Communication Manager Tone Horvei Bredal, Borregaard, tel +47 924 67 711
