Sappi said in the last few years the paper industry has faced “significant cost increases”, which it has covered by implementing several cost reductions and efficiency programmes across its operations.

Marco Eikelenboom, Sappi’s European sales and marketing director of graphic papers, said: “Despite the policies we have implemented, unfortunately profitability has remained on an unsustainable level.

“Prices have eroded and our input costs have escalated, and we can’t see that changing during 2009.”

Earlier this year, the EU competition authorities cleared Sappi’s proposed acquisition of M-real’s coated graphic paper business.

Read the original article at www.printweek.com.

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