Feldmuehle has halted paper manufacturing at its Uetersen site in northern Germany after determining it can no longer operate competitively under current market and regulatory conditions. The mill, which supplied paper grades for packaging sectors including food, drink and consumer goods, has ended production after 120 years and will focus on selling remaining stock in the coming weeks.
The company pointed to sustained increases in industrial electricity prices and rising administrative requirements as key pressures that eroded commercial viability. Management assessed the long-term outlook and concluded that energy-intensive operations at the site could not be maintained.
Around 200 employees are affected by the closure. The facility had the capacity to process more than 80,000 tonnes of raw material annually and had invested heavily in efficiency upgrades and sustainability measures in recent years. These efforts did not offset the widening cost gap facing many European mills, particularly those exposed to high energy inputs.
The shutdown adds to the ongoing consolidation across the region’s pulp and paper sector, which continues to face volatile demand patterns, tighter environmental expectations, and increased production costs.