Cease of production at Arctic Paper Mochenwangen to be effective in December 2015.
The implementation of measures to eliminate further losses at Arctic Paper Mochenwangen, announced in July this year as part of Profit Improvement Program 2015/2016, has now reached a milestone. The negotiations with the Works Council of Arctic Paper Mochenwangen have been finalised on Sunday the 15th of November. The cease of production is to be finalised during December 2015. All confirmed orders are to be produced and delivered as agreed.
At the same time the sale process, including on-going negotiations with potential buyers, of Arctic Paper Mochenwangen is still on going and will continue during 2016.
The costs related to the cease of production in the Arctic Paper Mochenwangen mill are estimated to the amount of 9,3 MEUR (approximately 39 MPLN).
A provision will be created for these costs in Q4 and will be reported as discontinued operations.
The actions taken will enable Arctic Paper Group to concentrate its efforts on the three remaining paper mills; Arctic Paper Kostrzyn, Arctic Paper Grycksbo and Arctic Paper Munkedals. The decision will lead to the full attention to profitable products and the implementation of the Profit Improvement Program 2015/16.
Further information for the media provided by:
CEO, Arctic Paper S.A.
tel. (+49) 40 51 48 5310
COO, Arctic Paper S.A.
tel. (+46) 31 63 1703
Monday, 16 Nov, 2015