Malmo, Sweden, 28 September 2011 -- The packaging group A&R Carton is optimizing its production in the Nordic region. The management of the Swedish company has today begun negotiations with the trade union representatives to close the factory in Norrköping. The plans affect around 80 employees. A further 12 people were given notice earlier in the year.

"Competition on the European folding carton market is tough and it is not possible to make the products we make today in a competitive manner with the cost structure in the plant in Norrköping," said Per Lundeen, Group CEO of A&R Carton AB.

The factory has been unprofitable for many years. Despite numerous efficiency enhancements and investments in operations, the company has not been able to reverse the trend. The volumes currently produced in the factory will gradually be transferred, primarily to A&R Carton's plants in Lund, Sweden, and in Finland in 2012. Deliveries to customers will continue without interruption.

"We regret that we are forced to make employees redundant, but it is necessary to maintain our competitiveness. By concentrating production on specialized factories, we will create a number of competence centers, which will make us more efficient and give us better opportunities to develop new products. This will benefit our customers, which will also protect the jobs in our other plants," Lundeen said.