Brussels, Belguim 15 October 2013 -- Sappi is poised to take another step to cut costs at its European subsidiary Sappi Fine Paper Europe. The company is to eliminate 170 jobs in Gratkorn, Austria.

Sappi Limited has announced it will cut 170 jobs at its Gratkorn mill in Austria over the next two-and-a-half years. The group did not disclose details of what types of job cuts were involved, in other words how many workers would be laid off, take early retirement or leave the company in other ways. Talks with employee representatives had not taken place yet, a spokesperson for Sappi Fine Paper Europe said.

Sappi runs two paper machines with a combined capacity of 950,000 tpy of woodfree coated paper in Gratkorn. The Gratkorn site also has a pulp production with a capacity of 250,000 tpy and a sheeting plant with a capacity of 800,000 tpy. The complex currently has some 1,300 workers. The firm said that the planned reduction in its workforce would improve Gratkorn's cost position and allow it to produce "more efficiently in a challenging market environment."