Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Swedish paper manufacturer SCA has started co-operation negotiations in order to phase out the production of printing paper at the Ortviken production site. As a result of this, 800 employees working at the production site risk losing their jobs by the end of February 2021.
According to SCA, the closure is needed since demand for production of printing paper has steadily decreased during the past years and now the COVID-19 has created a more sudden drop in demand.
The company plans to use the production site in Ortviken for production of pulp for hygiene and packaging paper. SCA will invest approximately SEK 1,5 billion (€150 million) to transform the production site and the planned start for pulp production is 2023. The production site will employ approximately 100 workers. The local shop steward argues that although they were aware of the need to reduce capacity, SCA’s plan to close the entire production site came as a surprise.
Eurofound (2020), SCA, Closure in Sweden, factsheet number 101559, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/101559.