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Burgo Considering Job Cuts
Vicenza, Italy 13 March 2013 -- Italian paper producer Burgo is considering to reduce the workforce at its fine paper mill in Ardennes, Belgium. A spokesperson for the trade union CSC said this action might affect around 40 workers. Talks were already under way and the first positions might be eliminated in April or May, the spokesperson said. Burgo was not available for comment.

The spokesperson said that Burgo's actions were due to a number of jobs now being obsolete. The company reportedly felt that it needed to take action to produce more efficiently and improve its competitiveness amid challenging market conditions. The reorganisation will affect both the company's pulp and paper operations.

Burgo Ardennes is located in Vitron and produces woodfree coated paper as well as hardwood pulp on one machine respectively. It can produce 360,000 tpy of pulp while its paper capacities amount to 350,000 tpy.

Burgo has battled a tough market climate for its mills for some time. Around a month ago, Burgo to shut down Italy's last newsprint mill the company closed its Mantua mill, which had a capacity of 160,000 tpy and was Italy's last newsprint mill. Burgo shuts down PM 1 at Avezzano mill Burgo also closed one of two paper machines in Avezzano last July, removing 100,000 tpy of coated fine paper capacity from the market. However, it managed to avoid closing the entire mill. Both actions were preceded by several periods of temporary downtime in previous months due to a lack of orders.


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