RDM Group to Close Its Castellbisbal Cartonboard Mill in Spain

RDM's mill in Castellbisbal has the capacity to produce up to 190,000 tons per year of white lined chipboard (WLC) made from recycled fibers.

Jan. 16, 2025 - RDM Group announced that it will close its Castellbisbal cartonboard mill in Barcelona, Spain, due to declining demand and high input costs.

The mill has the capacity to produce up to 190,000 tons per year of white lined chipboard (WLC) made from recycled fibers. The facility employs around 230 people.

RDM acquired the mill in Castellbisbal, which was known as Barcelona Cartonboard, in October of 2018 from the private equity firm Quantum Capital Partners.

In a press release, RDM said, "The Group is forced to take this difficult decision due to increasingly challenging market conditions, including a shift in consumption patterns, inflationary pressures in Europe and a challenging geopolitical environment exacerbated by the Russia-Ukraine conflict.

"These factors, combined with a significant drop in European cartonboard demand between 2021 and 2023, have led to accumulated stocks in the value chain and therefore very low mill capacity utilization rates.

"In Iberia the demand has sharply decreased. This context particularly impacts the Castellbisbal Mill," RDM added.

RDM noted that it will continue to operate in Iberia through its Paprinsa Mill in Mollerussa, Lleida (Spain), which has greater flexibility options that enable the company to strengthen competitiveness and better adapt to the current and future expected sector's dynamics.

RDM Group, based in Milan, Italy, is a leading European producer of recycled cartonboard packaging. The Group's main business areas are White Lined Chipboard (WLC) and Solid Board.

SOURCE: RDM Group