Sappi Europe has initiated a consultation process at its Alfeld Mill in Germany, marking a key step toward a proposed partial asset restructure. This move responds to prolonged financial pressures and a structural decline in demand across the European paper market.
In recent years, Sappi has implemented several measures to improve Alfeld Mill’s financial performance. Although these efforts have significantly reduced losses, the complexity of the current product and asset portfolio continues to hinder the mill’s ability to operate sustainably under prevailing and expected market conditions.
To ensure long-term operational viability, the proposed plan includes the potential closure of Paper Machine 1, Paper Machine 4, Offline Coater 2, and Sheet Finishing operations. These adjustments aim to align production capacity with shifting market demand, streamline operations, and focus on the most profitable and in-demand product segments.
“As we respond to evolving market expectations for lower-carbon, resource-efficient materials and work to ensure a competitive and resilient future for our European operations, these difficult decisions are necessary,” said Marco Eikelenboom, CEO of Sappi Europe. This step supports our broader commitment to the Clean Industrial Deal, by accelerating the decarbonisation of our mill and adapting our product portfolio to better meet future customer needs and regulatory requirements. By focusing on our most efficient assets, we can strengthen our service offering, enhance sustainability and secure long-term regional viability.”
The proposed restructure aligns with Sappi Europe’s broader strategy to optimize its asset base in line with changing customer needs and sustainability goals.
The consultation process may impact up to 200 positions at the Alfeld Mill. Sappi is committed to supporting all affected employees and will work closely with employee representatives to develop appropriate solutions.
