Melbourne, Australia 15 November 2012 -- Paperlinx has announced a new restructuring plan affecting company employees in the UK. The Australian paper wholesaler said it received approval for the rapid implementation of restructuring and cost reduction initiatives in its UK businesses meaning that 200 more employees would have to leave the company in the fiscal year 2012/2013. Based on decisions made to date, the company will reportedly lay off a total of 370 employees in this period of time.
Paperlinx pointed to the ongoing depressed trading conditions in Europe when explaining the need of those rationalisation measures. The group’s core markets are said to have rapidly weakened in the last three months. To restore profitability, decisive action had to be taken, the company said. Paperlinx expects benefits from the restructuring measures to amount to $13m annually.
Paperlinx reported it was also taking similar action to recalibrate the cost base of its businesses in Continental Europe to match current demand adding that if restructuring costs did not bring benefits, the company would consider asset rationalisation.
In the past months, Paperlinx has parted with several operations. The group sold its Central and Eastern European assets to Europapier International, a subsidiary of the Heinzel Group, in early November. In July, Paperlinx also divested its entire US paper business to trading company Central National-Gottesman while the Lecta Group acquired Paperlinx’ Italian subsidiary Polyedra.