Lecta Declares Temporary Shutdown of Line 8 at Condat, France Paper Mill

SEATTLE (Scrap Monster): Lecta has announced temporary shutdown of PM at its Condat Mill, France. The line 8 production at the mill will come to a halt by end of April this year. However, the decision is subject to re-evaluation depending upon evolving market conditions and developments.

According to company press release, the notable decline in demand for coated paper over the past several years has led to overcapacity. The trend has further worsened in recent months, forcing the company to announce shutdown of line 8 temporarily. The decision is unlikely to affect Lecta’s customers of coated paper, as they will be serviced by other lines in the mill as well as its other coated paper mills. The strategic transformation plan to convert production line 8 to specialty papers is also under consideration, the press release said.

In order to make Condat mill more profitable, Lecta had earlier announced plans of a conversion project that would convert production line 8 from manufacturing coated papers to manufacturing specialty papers for labels and flexible packaging. The company still awaits financial assistance from the government, as it is currently not in a situation to undertake large investments by its own.

The approximate cost of conversion of PM is estimated at around €48m. The country’s Ministry of Economics had offered support to the company in bearing high energy costs. However, the measure still needs approval by the European Commission.