Business

Powerflute, the Finnish containerboard manufacturer, took market-related downtime equivalent to 5% of annual production at its Kuopio mill in October and November and plans further downtime in December.

In a trading update, it said deterioration in the economy in the second half of the year has led to softening in demand in most markets, as a result it expects its earning to be below expectations.

The company told Packaging News that no jobs had been impacted by the downtime.

The company, chaired by Dermot Smurfit, added that it remains "confident" that it will secure the necessary finance to complete the acquisition of Scheufelen, the German manufacturer of coated wood-free papers.

Scheufelen filed for insolvency in June and administrators are running the business until the transaction is concluded.

The Lenningen, South Germany-based company employs 500 staff and produces a range of different papers with different finishes.

Powerflute's Kupoio-based mill has a capacity to produce 300,000 tonnes of paper per annum.