Cites rising raw material cost, unfavorable currency, and overcapacities for decision
January 14, 2016
Swiss fine and specialty paper manufacturer Ziegler Papier will discontinue paper production as of April this year. The company blames its decision on existing overcapacities, unfavourable currency rates and the resulting strong cost pressure. The situation was further aggravated by the January 2015 decision of the Swiss National Bank to no longer hold the Swiss franc at a fixed exchange rate with euro, it is said.
The company does not expect raw material costs to ease in the years to come; also underlines limits to cost-cutting and efficiency-improvement measures.
At the Grellingen mill in the canton of Basel-Country Ziegler Papier runs one paper machine producing some 72,000 tpy of uncoated graphic and specialty paper with basis weights ranging from 40 g/m² to 400 g/m².
Ziegler Papier has a staff of approximately 100 people. The collective consultations have already begun, according to the company.