Paper packaging maker Smurfit Kappa Group will close a recycled container board mill in northern Spain to reduce capacity.
The shutdown in Valladolid will cut 2008 output by 70,000 tons to improve the "supply demand balance and to address an increase in inventory levels," the company said today.
The factory has an annual capacity of 130,000 tons.
Smurfit plans to cut 2008 production by a further 80,000 tons by temporarily shutting some machinery in March and April.
The cost of the closures is expected to be mitigated through exceptional gains in 2008, the company said.
Shares in Smurfit Kappa were off two cents at €7.50 at 10am on the Dublin market today.