Sappi, the world's largest maker of fine paper used in glossy magazines, has been cutting capacity in all its operations as the paper industry struggles to recover from a slump caused by sluggish demand and over capacity.
But recovery has been slow for Sappi with weak consumer demand in Europe and an acceleration to digital devices from traditional print.
Chief executive Ralph Boettger said the company was cutting costs in “every single area” of its European business, which is its biggest, to boost margins.
“We are going to have to also take out further capacity and that will most probably involve closure of either mills or machines or both,” Boettger told Reuters in an interview.
