Borregaard to close pulp mill in Switzerland

The outlook for the company indicates continued losses,
and therefore a process to close the mill in December of this year has been
initiated.

“We regret this serious situation for the company and the
difficulties this will create for our employees. During the last few years we
have worked hard to improve the situation, but we have to realise that the mill
is not profitable in today’s market situation”, says Borregaard’s President
& CEO, Per Sørlie.

Borregaard’s business in Switzerland had a
turnover in 2007 of EUR 105 million. The company’s competitive position has
developed negatively and despite notable improvements, substantial investments
are necessary to specialise the mill further. In addition, the mill in
Switzerland has experienced a strong increase in raw material and energy costs,
and the market development for important product segments have had a negative
development in recent months. Prospects show no signs of improvement for the
company.

Borregaard will establish financial support and offer practical
assistance to find new jobs for the 450 employees.

Related
website:
Borregaard  

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