Sweden's Duni will close one of the three production units of its subsidiary Rexcell Tissue & Airlaid AB, which produces and sells material focused on the hygiene products sector. Approximately 110 employees will lose their jobs at the Rexcell subsidiary.
The closure of the production unit entails a one-off cost of approximately $13 million (SEK 83m), which was incurred in the fourth quarter of 2012. It is estimated that the unit will be fully closed during the first quarter of 2014.
In a statement the company says, "Duni’s core business comprises products which enhance the atmosphere around the set table and it is there that the company shall grow. The new Evolin tablecovering material, for which we have made significant investments in production within Rexcell in recent years, provides a good example. The consequence of the decision is that, after having attempted to develop the business, Duni will no longer continue to invest in the production of input materials for the hygiene products sector. The decision is a difficult one since it affects many people, but it is important for Duni to follow the strategy and focus on the business which provides the best return for the future.”