Three years after staving off bankruptcy with support from a state government-backed loan, a Manistique-based manufacturer of recycled paper now plans to shut down its operations by Tuesday, March 24, according to a filing with the state. The closure of FutureMark Manistique’s paper mill will result in all 147 employees being permanently laid off. The company said that the closure could occur sooner if it does not get continued support from its lender and suppliers. In a Worker Adjustment and Retraining Notification (WARN) Act notice filed with the Michigan Workforce Development Agency on Wednesday, MPI Acquisition LLC, which does business as FutureMark Manistique, said the decision to close the facility was “the result of sudden and unanticipated events, including the loss of liquidity, inability to effectuate adequate refinancing, and inability to attract a new owner to operate the mill.”
SCA has decided to discontinue its hygiene business in India. Four years after entering the Indian market, our conclusion is that profitability cannot be achieved within a reasonable timeframe. SCA prioritizes growth in selected emerging markets such as China, Southeast Asia, Latin America, Eastern Europe and Russia, where the company already holds strong market positions. Emerging markets accounted for 32% of SCA’s net sales in 2015.
The total cost of the discontinuation of operations are expected to amount to approximately SEK 350m and will be recognized as an item affecting comparability in the fourth quarter of 2016. Approximately SEK 50m of these costs are expected to impact cash flow.
The hygiene business in India reported total net sales of approximately SEK 110m in 2015, the majority of which related to baby diapers.
The hygiene business in India will be discontinued in the first quarter of 2017.