Sappi Europe announced the initiation of a consultation process at its Alfeld Mill in Germany as part of a proposed partial asset restructuring. This step is being taken in response to sustained financial challenges and a structural decline in demand across Europe.
Over recent years, Sappi has taken considerable steps to improve the financial performance of its Alfeld Mill. However, 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.
Ensuring long-term viability
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.
“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,” said Marco Eikelenboom, CEO of Sappi Europe. 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.”
Up to 200 positions affected
The proposed restructuring supports Sappi Europe’s strategy of optimising its asset base to match evolving customer needs and sustainability goals. According to Sappi, “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.”