Skyrocketing electricity costs – paper industry stops production

Lessebo Paper temporarily stops its paper production due to the rampant electricity price. Klippan’s paper mill in Skåne is also pausing production. “These are very strong warning signals,” says CEO Per Hidesten at Industriarbetsgivarna, which now warns of notices and company moves within industry.

Electricity prices are skyrocketing, and several companies are currently struggling with sky-high electricity costs. In Småland’s Lessebo and Scania’s Klippan, it has gone so far that the paper mills have shut down their production.

– We took a break on Wednesday evening and now start on Friday evening, says Klippan’s new CEO Göran Fransson when TT calls.

Klippan, which with 60 employees manufactures paper for napkins, today uses natural gas and electricity. But prices are skyrocketing and production is under severe pressure from electricity prices. Now the price development is followed on a daily basis.

The situation is the same in Småland’s Lessebo. During Wednesday, the mill’s paper machines were at a standstill, reports say Smålandsposten.

Daily decisions

At the old mill in the southern part of Småland, over 100 colored shades of paper are produced for writing and printing purposes as well as packaging. Much has so far been exported to customers in Europe. The mill, with 110 employees, now makes daily decisions about production based on where electricity prices end up.

– We can influence other parts of the production, but here we stand completely helpless and only hope for lower electricity prices. We don’t know where it will go, says CEO Jens Olson to Smålandsposten.

According to Carl Norell, press manager for Stora Enso, which includes the Nymölla paper mill, the impact of electricity prices is limited at group level. The reason is that the degree of energy self-sufficiency is high.

“Strong negative”

But in many other places the situation is acute. Per Hidesten, CEO of Industriarbetsgivarna, warns of the risk of notice and that companies may in the near future move their operations from Sweden and the EU.

The concern is great – he faces it daily from his member companies, he tells TT.

– The entire energy-intensive industry is strongly negatively affected. This applies to the forest industry with pulp and paper production, it applies to the steel industry but also to the building material industry and workshops, he says and continues:

– They describe the situation as “should production be shut down – is it less expensive?” At the same time, they have to weigh it against the orders and contracts they have. It’s a trade-off they have to make every day.

Notification required

Lessebo’s and Klippan’s mills now demand that politicians and the government give notice of measures.

– We need to get a reasonably quick message. Politicians must act when it comes to the distribution of electricity areas, says Jens Olson.

Klippan’s mill has had many visits from politicians in the past year, says Göran Fransson. There, too, they want information about the future.

– We see no change in power grid areas or taxes or reimbursement.

It is too bad electricity production in southern Sweden, says Per Hidesten at Industriarbetsgivarna, who wants to see a political solution quickly.

– It is in a great hurry. It is important to do things for the future in the long term as well. Aid is only short-term measures.

Source: Nyteknik – Senaste nytt by

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