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Rottneros to Cut 47 Jobs Due to High Input Costs, Unfavorable Dollar Exchange Rate

Rottneros Bruk Rottneros said that the majority of the employees affected by the situation work at Rottneros Mill in Sunne, Sweden, which produces chemical thermomechanical pulp.

March 25, 2025 - Swedish pulp producer Rottneros announced that it is cutting 47 jobs due to rising raw material prices, the world market's declining demand for mechanical pulp and an increasingly weaker dollar exchange rate.

Last week, the company had issued a profit warning, explaining, "The continued rise in the prices of wood raw materials, the negative market development, especially for CTMP (chemical thermomechanical pulp) produced in Rottneros Mill, and a weaker USD, have had a negative impact on the Rottneros Group's financial performance in the first quarter of 2025."

Rottneros said that the majority of the employees affected by the situation work at Rottneros Mill in Sunne.

In a written statement, the company said, "Last year, the price for pulp wood increased by 15 percent, while the price of electricity continued to be at high levels. In addition, the dollar exchange rate has fallen. This has meant that the price of Swedish mechanical pulp has not been competitive on the world market and that sales have declined. These three factors together have forced the Group to make a quick and painful decision to survive through the recession."

Rottneros CEO Lennart Eberleh commented, "Since it is at Rottneros Mill that we produce mechanical pulp, this is unfortunately where the biggest reductions need to be made. The big investments we have made in the mill over the past two years show that we have a long-term belief in the future. There is a strong market for high-quality pulp for paperboard in the world, but right now all parameters are wrong for us to be able to produce at competitive prices."

Rottneros consists of two pulp producing units in Sweden — Rottneros Mill (Sunne) and Vallvik Mill (Vallvik). Also part of the Group are Rottneros Packaging AB, which produces moulded fibre, Nykvist Skogs AB and SIA Rottneros Baltic, who provide the Group with raw material.

SOURCE: Rottneros AB

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