Smurfit Kappa announces closure of Slovakia mill

Smurfit Kappa Group has today announced its plans to cease production at its mill in Sturovo, Slovakia.

The mill has a production capacity of 200,000 tonnes of semi-chemical fluting and currently employs 350 people.

The planned closure is as a result of the "excess capacity in the European containerboard market

combined with the effect of the global economic downturn which has resulted in significantly

reduced demand", according to the company.

"Further factors contributing to the proposal to close the mill have been currency swings and, in Smurfit Kappa’s view, unwarranted government aid for new recycled capacity additions in central and eastern Europe," said the company statement.

"As a consequence of the proposed closure of the mill Smurfit Kappa Group's future fluting needs

will be mainly supplied from other mills within its own system thereby preserving its integrated

model and the primacy of its position in the European paper packaging industry."