Felix Schoeller announces cost-cutting measures

According to a press release, the restructuring program was developed to safeguard the company as an independent familiy owned enterprise, increase efficiency and competetivness and respond to the fundamental change of the imaging industry. The company also cited higher costs for raw materials, including pulp and titanium dioxide, and energy.

To cut costs, a total of 300 of the company‘s 2,490 jobs will be terminated, including 242 jobs in administration. One of the two paper machines in the company‘s production facility in Titisee-Neustadt (State of Baden-Wuerttemberg) will by shut bown by September 30, 2011 at the latest, resulting in the cut of another 84 jobs.

In 2009 and 2010, Felix Schoeller invested Euro 56 million (US$ 75 million) in the rebuild of its paper machine 1 at its parent mill in Osnabrueck, which is now the world‘s largest fastest decor paper machine, but can also produce imaging papers.

”There is no alternative to the cost-cutting measures”, commented Dr. Bernhard Klofat, CEO of the Felix Schoeller Group. ”We will do our best to handle the job cuts as socially responsible as possible and work closely with our company‘s work council.”

With more than 2,400 employees, the Felix Schoeller Group produced 290,000 metric tons of paper in 2009 and recorded sales of Euro 576 million (US$ 778 million). In addition to its five production plants in Germany, the company also produces paper in der US and Canada and in Russia in a joint-venure with a local partner.