The news follows the confirmation this week that the Caldwells site has just secured a three-year partnership deal with The Stationery Office as a preferred supplier (see separate story).

Along with Caldwells mill, the planned cuts will hit three plants in Sweden at Klippan, Lessebo and Mlndal.

Klippan president and chief executive Bengt stensson said the company had to look at the way it was organised, following its two acquisitions last year of Stora Ensos Mlndal mill in March and
Inveresks Caldwells plant in November.

Coupled with this the company had also suffered from the weak market, he said.

Klippan is also reorganising production at its mill sites.

The coloured paper business has already transferred from Caldwells to the three Swedish mills, following the mothballing of the mills PM3 paper machine.

Caldwells will now specialise in production of Klippans Repeat recycled grade.

The Caldwells mill has a capacity of around 40,000 tonnes per annum and employs some 152 staff.
The three other mills in Sweden will focus on the production of graphic and coloured office paper.
Consultations with unions will start in early August and the programme is set to be implemented in early 2004.

Story by Andy Scott