The Finnish cartonboard producer Kotka Mills has launched restructuring negotiations that could lead to layoffs at its production site in Kotka in south-eastern Finland.
According to the company, up to 31 jobs could be affected as the firm reviews its organisation and cost structure. The negotiations involve roughly half of the company’s workforce.
The development was first reported by the regional newspaper Kymen Sanomat.
Kotka Mills manufactures packaging board used primarily in food packaging, beverage containers and other carton-based products. The mill in Kotka is a significant industrial employer in the region and an important part of Finland’s export-oriented forest industry.
Negotiations affect multiple functions
The restructuring talks are based on planned operational and financial adjustments within the company.
Kotka Mills’ chief executive Marko Pekkola explained the background to the negotiations in a statement to Kymen Sanomat.
-The negotiations are based on reorganisations being considered for production and economic reasons and involve all personnel groups within the company, with roughly half of the employees included in the talks.
According to the company, the changes under discussion may affect several parts of the organisation. These could include adjustments to work arrangements, changes in job tasks, new job titles and redistribution of responsibilities between staff groups.
Up to 31 positions at risk
The negotiations may ultimately lead to the dismissal of up to 31 employees, although the final outcome remains uncertain while the discussions are ongoing.
Restructuring talks of this kind are common in the Nordic forest industry when companies seek to adjust production and staffing levels to market conditions.
Packaging board is a key product in the European forest industry, widely used in consumer packaging and logistics. Demand is closely linked to economic activity in sectors such as retail, food production and transport.
In recent years, market conditions have become more volatile. Higher energy costs, shifting trade patterns and slower economic growth in Europe have increased pressure on producers to improve efficiency and reduce operating costs.
Part of the Austrian packaging group
Kotka Mills is owned by the Austrian industrial group Mayr-Melnhof Group, one of Europe’s largest producers of cartonboard and packaging materials.
The group operates production facilities across several European countries and supplies packaging board to the food, beverage and consumer goods industries.
The Kotka mill has long been a key part of the company’s production of barrier board, a specialised type of cartonboard designed for food packaging and disposable containers. Barrier board has been promoted as an alternative to plastic-coated packaging in certain applications.
At the same time, the Nordic forest industry is undergoing a period of adjustment as companies respond to uncertain global markets and shifting demand for paper-based products.
Several pulp mills and cartonboard plants in Finland and Sweden have introduced temporary production stops, efficiency measures or staff reductions in recent years as demand fluctuates.
Fact:
The Nordic cartonboard industry is heavily export-dependent. Packaging board produced in Finland and Sweden is widely used in food packaging, transport packaging and hygiene products. Demand is sensitive to economic conditions in Europe and Asia as well as to energy prices and raw-material costs.
Source: Kymen Sanomat
