Sappi Europe finalizes Alfeld Mill restructuring with focus on high-barrier packaging papers

GERMANY – Sappi Europe has wrapped up a detailed consultation at its Alfeld Mill in Germany, confirming the shutdown of paper machines 1 and 4, along with offline coater 2 and sheet finishing operations. 

The move, first outlined in a July 2025 announcement, targets better profitability amid shifting market conditions for paper products. 

The mill, which turns out coated and uncoated packaging and specialty papers, will now streamline its setup to match current demands.

The changes will cut around 180 jobs through unfilled openings, voluntary exits, and limited redundancies. 

Sappi has pledged a careful approach to these adjustments, working alongside employee groups to ease the transition. Deliveries to clients remain on track, with no expected delays in supply.

According to company details, the Alfeld site will concentrate on specialty papers and high-barrier options designed for food and consumer goods packaging. 

These materials offer strong protection against moisture and oxygen, key for extending shelf life in sustainable formats. 

The mill’s integrated pulp production, using chlorine-free bleached pulp from local wood sources, keeps operations efficient for these targeted outputs.

Misa Bursac, vice president of manufacturing, R&D, and technology, stated that the shifts form part of efforts to match production with customer needs. 

She noted the company aims to maintain reliable service while adapting the site to ongoing market shifts.

In a related development, Sappi Europe launched a consultation at its Kirkenes Mill in Finland last month, eyeing similar asset tweaks due to falling demand for certain grades. 

That process could impact up to 150 roles and involves reviewing two paper machines.

Meanwhile, the firm rolled out price hikes of US$60 to US$100 per ton on woodfree coated papers starting October 1, 2025, across export regions to counter rising costs.

Marco Eikelenboom, CEO of Sappi Europe, explained in a statement that such steps respond to broader European trends toward resource-efficient materials. 

He added that the actions speed up decarbonization at sites like Alfeld, where the mill logged two million hours without lost-time injuries in 2024.

These updates come as the packaging sector pushes for eco-friendly alternatives. High-barrier papers from Alfeld help cut plastic use in flexible packaging, supporting circular economy goals.

The mill holds certifications for environmental and quality standards, ensuring compliance in its streamlined role.

Overall, Sappi’s actions at Alfeld signal a pivot toward viable, demand-driven production. 

With closures set to finish by year-end, the site prepares for expanded output in barrier solutions, vital for brands seeking durable, low-impact wrappers.