Business strategies

Sappi leaves the Cham site and announces staff cuts


At the end of 2017, Sappi signed an agreement to purchase the special papers business of the Cham Paper Group. That included the purchase of the Italian Carmignano and Condino paper mills, the digital imaging business with its headquarters in Cham, in Switzerland, all the brands and the know-how.

The purchase, seen as part of Sappi’s diversification strategy within the Vision202020 initiative to increase its higher margin segment business and supply customers with a wider portfolio of products, was finalised last February when Sappi received approval from the regulatory agencies and shareholders of Cham Paper Group. The two companies therefore became one in March. Last first July, the two paper mills of Cham Paper Group and the processing centre own the insignia, whilst the Cham brands have been kept, even if now they will be identified as Sappi products.

However, because of the expiry of the lease agreement, Sappi Europe will have to leave the Cham site by the end of June 2019. In the last few months Sappi’s management has examined various options of moving within Switzerland and abroad. Considering that Sappi does not have a factory in Switzerland, the best solution seems to be that of integrating the processing companies, the solutions centre, the supply chain and client services in the Sappi Europe facilities already existing. These measures would lead to a reduction of about 25 full-time posts in Cham. The employees have been informed and the legal consultation process has been started. A social plan will be negotiated between the management and the employees.