Suominen Corporation has decided to stop the production of polypropylene staple fibres at the Nakkila facility of Suominen Nonwovens Ltd. This is part of the company’s broader performance improvement program aimed at creating cost savings representing about two per cent of net sales.

For Suominen Corporation’s Nonwovens business area it is no longer strategically relevant to have in-house fibre manufacturing, therefore it has been decided to stop this activity. Suominen Corporation has negotiated a long term supply agreement for the raw material, in order to replace the in-house production.

The fibre lines at the Nakkila facility of Suominen Nonwovens Ltd are to be closed by the end of 2012. This has no effect to the earlier announced lay-offs in Suominen Nonwovens.

The closure of the production will lead to a write down of about 3 million euros in Suominen Nonwovens Ltd 2012 results.