GERMANY (News release) -- Sappi Europe announced the initiation of a consultation process at its Alfeld Mill in Germany as part of a proposed partial asset restructure. This step is being taken in response to sustained financial challenges and a structural decline in demand across Europe.

The consultation process may affect up to 200 positions at the Alfeld Mill.

Over recent years, Sappi has taken considerable steps to improve the financial performance of its Alfeld Mill. However, despite reducing losses significantly, the complexity of the current product and asset portfolio has limited the mill's ability to operate sustainably under current and foreseeable market conditions.

To ensure long-term viability, the proposed restructure includes the potential closure of Paper Machine 1, Paper Machine 4, Offline Coater 2, and Sheet Finishing. These changes would allow Sappi to align capacity with shifting market demand, reduce operational complexity, and concentrate production on the most profitable and in-demand segments.

Sappi is a leading global provider of everyday materials made from woodfibre-based renewable resources.