Ahlstrom, a global leader in high performance fiber-based materials, announced today that it has completed the review process of its Chantraine plant in France. The company has informed the plant's works council about the project to close the plant due to unsatisfactory profitability and cash flow. Ahlstrom estimates to book a non-recurring cost of approximately EUR 11 million related to the closure in its fourth quarter result in 2007.
The closure, effective by the second quarter of 2008, would affect approximately 120 people and reduce the annual production capacity of one-side coated papers by approximately 30,000 tons.
Ahlstrom announced on October 10, 2007, that it would put the Italian Ascoli and the French Chantraine plant under review due to unsatisfactory profitability and cash flow. Both plants are part of Ahlstrom's Release & Label Papers business area. On October 30, 2007, Ahlstrom announced the closure of the Ascoli plant by mid-January 2008 and estimated to book a non-recurring cost of approximately EUR 15 million. The closure of the Ascoli plant affects 200 people and reduces the annual production capacity of one-side coated papers by approximately 65,000 tons.