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Fedrigoni Reduces Output

Varone, Italy 25 July 2013 -- Italian specialty and graphic paper manufacturer Fedrigoni Spa has reduced output from PM 1 at its mill in Varone for market-related reasons.

PM 1 at Fedrigoni's Varone mill in Italy will no longer run 24 hours a day, seven days a week. The company confirmed local media reports which said that the machine would be switched off on Saturday mornings only to resume operations on Monday.

The decision to abandon continuous production on PM 1 was motivated by market conditions, a company spokeswoman told EUWID. In view of poor demand for certain paper grades, it was necessary to curb output and reduce expenses for staff, raw materials and energy. However, the measure is temporary and could be revised at any time if warranted by market conditions, the company underscored.

The Varone mill is producing about 40,000 tpy of paper on two machines and employs around 160 people. The stopping of non-stop operation will not impact staffing significantly: redundancies have been reportedly limited to a few employees.

Italy’s Fedrigoni group, which among others includes paper manufacturer Cartiere Fedrigoni and Cartiere Miliani Fabriano, employs just over 2,150 persons in nine countries. The group’s total capacity amounts to 375,000 tpy, including graphic paper, flexible packaging paper as well as security and banknote paper. In addition, Fedrigoni's converting businesses are producing more than 550,000 m² of paper products.


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