Metsä Tissue, part of Metsä Group, announces day-long temporary production stops in the week commencing 11 July in its Kreuzau mill in Germany and Zilina mill in Slovakia due to extremely high energy prices. Profitability will continue to be reviewed on a daily basis and high energy costs may continue to cause temporary production shutdowns.
Tissue business is very energy intensive and the extremely high energy prices are making the situation critical. The great volatility in the current business environment and the recent extreme developments in cost inflation have resulted in these temporary production stops.
Metsä Tissue has been implementing all actions possible to mitigate the price conditions to safeguard the continuity of its operations and the ability to deliver hygiene necessities to its markets. Despite these actions, the cost situation has emerged critical and is expected to continue very volatile. The temporary production stops may also result in further challenges in the delivery capability of tissue hygiene products.
“We are diligently taking all actions possible to deliver hygiene necessities to Western and Eastern European markets and we are evaluating the situation on a daily basis. However, there is a risk that out-of-stock situations will occur if these extreme cost conditions prevail”, says Tobias Lüning, SVP, Central Europe, Metsä Tissue.
RELATED NEWS
