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Sappi Fine Paper Europe is to permanently shut down its Kangas paper mill in Finland in order to address the impact of the global recession.

The mechanical coated paper mill has been in operation for 137 years and employs 150 staff.

So far, 30 staff has left with a pension agreement, while four will transfer within the company. The remaining staff will be made redundant.

Berry Wiersum, chief executive of Sappi Fine Paper Europe, said: “We recognise this is a difficult decision affecting our employees, their families and the communities surrounding the mill.

“Unfortunately, this action was necessary to address the impact of the global recession, which has caused a structural drop in demand for mechanical coated paper.”

The volumes produced at the mill will be transferred to Sappi Lanaken in Belgium and Sappi Kirkniemi in Finland.

The Galerie Silk range will be supplied to customers from the Lanaken mill and Galerie Fine Silk will be suppled from the Kirkniemi mill.

Sappi said there will be no supply interruption to customers during the mill closure and transfer of production.

Earlier this month, staff at three Sappi paper mills in Europe decided on strike action against the paper manufacturer.

The dispute affected the company’s Finnish Kirkniemi mill, and its Maastricht and Nijmegen mills in The Netherlands.

Sappi has since agreed on a Collective Labour Agreement for Sappi Netherlands, covering staff at its Nijmegen and Maastricht mills and Sappi Netherlands Services.

Mat Quaedvlieg, manufacturing director at Sappi Fine Paper Europe, said: “Local management and the unions have worked hard during the last days towards a speedy resolution of the issues involved and I am happy to say that these have been amicably resolved.”