To ensure long-term viability, the proposed restructure includes the potential closure of Paper Machine 1, Paper Machine 4, Offline Coater 2, and Sheet Finishing. These changes would allow Sappi to align capacity with shifting market demand, reduce operational complexity, and concentrate production on the most profitable and in-demand segments.
July 08, 2025
Sappi Europe has announced the initiation of a consultation process at its Alfeld Mill in Germany as part of a proposed partial asset restructure. This step is being taken in response to sustained financial challenges and a structural decline in demand across Europe.
The Alfeld mill produces coated and uncoated packaging and specialty papers, along with chlorine-free bleached pulp. The mill houses five paper machines.
Over recent years, Sappi has taken considerable steps to improve the financial performance of its Alfeld Mill. Despite reducing losses significantly, the complexity of the current product and asset portfolio has limited the mill’s ability to operate sustainably under current and foreseeable market conditions.
Watch: In Pursuit of Lesser Water Footprint
To ensure long-term viability, the proposed restructure includes the potential closure of Paper Machine 1, Paper Machine 4, Offline Coater 2, and Sheet Finishing. These changes would allow Sappi to align capacity with shifting market demand, reduce operational complexity, and concentrate production on the most profitable and in-demand segments.
Marco Eikelenboom, CEO of Sappi Europe said, “As we respond to evolving market expectations for lower-carbon, resource-efficient materials and work to ensure a competitive and resilient future for our European operations, these difficult decisions are necessary. This step supports our broader commitment to the Clean Industrial Deal, by accelerating the decarbonisation of our mill and adapting our product portfolio to better meet future customer needs and regulatory requirements. By focusing on our most efficient assets, we can strengthen our service offering, enhance sustainability and secure long-term regional viability.”
The proposed restructure supports Sappi Europe’s strategy of optimising its asset base to match evolving customer needs and sustainability goals.
Also Read: India to Introduce New Quality Control Order for Imported Paper
The consultation process may affect up to 200 positions at the Alfeld Mill. Sappi remains committed to supporting employees throughout this process and will work closely with employee representatives to find appropriate solutions.
