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Holmen to Reduce Workforce at Hallsta Paper Mill
Norrkoping, Sweden, 21 June 2010 -- This week, Holmen Paper will begin negotiations on reducing the workforce at its paper mill in Hallstavik. Around 150 people will be affected.
"As the market for printing paper continues to be weak, we are forced to take steps to maintain our competitiveness and improve profitability," said Arne Wallin, head of Holmen Paper. "Unfortunately, these measures mean that a number of employees will have to leave the company." 

Holmen Paper has already reduced its staff, improved the product mix, and shut down unprofitable production capacity. In Hallsta, the recovered paper operation and one paper machine was shut down in 2008.

"We’ve succeeded in reorganizing production at Hallsta so that we manufacture more improved products such as MF magazine and book paper. But to achieve acceptable profitability, we also need to lower our fixed costs. Combined with the continuous efforts of further developing our products, among others through a rebuild of PM 11, this lays the foundations for securing a future for the mill that is sustainable in the long term," Wallin said.


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