Suominen will start consultation with local trade unions regarding a plan to permanently close manufacturing at its plant in Mozzate/Italy. According to the plan, the production would end during the 2nd quarter (Q2) of 2023. The Mozzate site currently employs 92 people, working both in production and in office roles. The consultation is aimed to be completed within 90 days.
Since the normalization of the Covid-induced demand surge, the competition in the European wipes nonwovens market has increased significantly driven mainly by imports from Turkey and China. This is the case especially in the traditional blended fiber products. At the same time energy costs in Italy have increased to record high levels. These 2 factors combined have created huge challenges for the cost competitiveness of the plant in Mozzate.
»Our lines at the Mozzate plant are not best suited for sustainable fibers, and this combined with high operating costs means that the plant is not competitive.«
The wipes nonwovens market is rapidly transitioning towards more sustainable alternatives. In line with its strategy, Suominen Corp., Helsinki/Finland, has set targets to increase the sales of sustainable products and to continuously innovate new environmentally friendly nonwovens.
The expected financial impacts of the potential closure are approx. €9 million in one-time cash costs in 2023-24 consisting mainly of severance costs, dismantling the production lines and restoration of leased buildings.