Ahlstrom Plans to Divest Stenay Plant, Cites Overcapacity in European Packaging Sector
Ahlstrom, the Finnish fiber-based materials company, has announced that it is considering divesting its Stenay plant in France due to overcapacity in the European packaging sector. The plant produces one-side coated specialty papers for specific uses in the packaging sector, with an annual capacity of approximately 55,000 tons of specialty paper and 127 employees.
Consultation Process Launched for Divestment
Ahlstrom has launched a consultation process with employee representatives at the Stenay plant to explore the possibility of divesting the site. If a buyer cannot be found, the company will consider closure. Despite attempting to develop potential new products, Ahlstrom has been unable to find solutions that would enable the group to continue operating the Stenay plant.
Stenay Plant Hit by Competition from More Competitive Cost Structure
The Stenay plant has struggled to compete in the European packaging sector due to overcapacity and competition with machines with a more competitive cost structure. The plant produces one-side coated specialty papers for specific uses in the packaging sector where there is overcapacity in Europe.
Support for Employees
Mark Ushpol, EVP of Ahlstrom’s Food and Consumer Packaging division, has expressed the company’s understanding of the difficulty the closure may pose to the employees at the Stenay plant. Ahlstrom has pledged to evaluate all viable alternatives for the site to mitigate possible unfavorable social impacts. Should the company be unable to find a solution, it has stated that it would work closely with other Ahlstrom locations, the city of Stenay, the Meuse locality, and other stakeholders to support all potentially affected employees.
Conclusion
The divestment of the Stenay plant by Ahlstrom highlights the challenges faced by companies in the European packaging sector due to overcapacity and competition with machines with a more competitive cost structure. It is hoped that Ahlstrom will be able to find a viable solution for the site, and if not, that the company will work closely with other stakeholders to support all potentially affected employees.
Bernie is an experienced financial journalist with a focus on Earnings News and Financial updates. He has been working as a journalist for more than 8 years and has been with Survey Paid since 2019. His byline can be found on articles covering stock market analysis and commentary, earnings reports, and other financial news. Based in New York City, NY.
Contact Email: [email protected]