Mougeot produces carbonless paper for export to Europe, and manufactures the Asset grade of reels and sheets for Premier Paper.

"We are sorry production will cease at the mill, but we understand Mougeots decision in view of the difficult market conditions," said Premier Paper marketing director Rob Viner.

He was pleased that Mougeot had secured the future supply of Asset carbonless deals through a deal with another mill.

Last year Premier Paper said it would offer Asset reels from Mougeot and Signal Plus sheets from Carrs Paper to replace Sappis Transcript grade, following Sappis decision to close the Transcript mill (PrintWeek, 12 October 2001).

Mougeot said it would disclose the name of the manufacturing mill in a few weeks, while it informs customers of its decision.

The French-based manufacturer said it had taken the decision to sell the machine to Bollor subsidiary Papeteries du Lman (PDL) due to significant overcapacity in the market.

PDL is to convert the machine to produce wafer-thin speciality papers, which will enable it to double its current annual capacity of 65,000 tonnes.

PDL, situated in Publier on the shores of Lake Geneva, produces industrial cigarette papers, digital printing paper and thin opaque paper for publishing and printing.

Story by Andy Scott