Oldest paper mill closes in Germany: 120 jobs in danger!

Oldest paper mill closes in Germany: 120 jobs in danger!

An era comes to an end: The Schoeller paper mill in Penig, the oldest producing paper mill in Germany, closed its doors on Monday. This decision, which was announced at the beginning of the year, affects 120 employees for whom new job opportunities are now to be created. In other locations, such as in the Black Forest or in the Allgäu, you can start employment. Alternatively, the employees concerned have the opportunity to switch to a transfer company to facilitate the transition, such as MDR.

The closure of the traditional factory is the result of persistently weak demand and increasing competitive pressure. CEO Christoph Gallenkamp expressed concerns about market development and found that the situation would not improve. The paper industry is in a crisis: According to the [Association of the paper industry] (https://www.verbandsbuero.de/paperustrie-2024- deep stand-in-produkt-und-zumatz/), production sank by 14 %in 2023, and sales fell 27 %. Such declines indicate an economic weakness that also influenced the decision to close the old factory.

background to the paper mill

The history of the paper mill in Penig goes back to 1537. It was produced in it. Decorative paper for furniture and interior equipment. After the acquisition by Felix Schoeller in 1991, the location was an integral part of the German paper landscape for decades. But now the closure process is essential, whereby no production -relevant systems are to be dismantled or shifted by December 31, 2025. This was agreed by the shareholders of Felix Schoeller Holding in order to possibly enable the location to be used.

The effects of this closure are far -reaching. There are also changes in the nearby production facility in Weißenborn, which employs around 700 employees: Here the company plans to create a strategic realignment of the product portfolio in order to develop more profitable and sustainable products. This also means that up to 210 jobs could be affected at various locations, which may require removals or long commuting routes for many employees.

The perspectives for the future

The challenges for the paper industry should not be underestimated. Higher costs for pulp and waste paper strain the entire industry, and digitization as well as requirements for more sustainability change the mode of production and consumption behavior. Managing Director Gallenkamp emphasizes how important it is to find socially acceptable solutions for the employees concerned and at the same time to improve the economic framework. The transformation of the industry offers opportunities for innovation, but also has a lot of uncertainties.

The closure of Germany's oldest paper mill is not only a sad news for the employees and the region, but also reflects the developments in an entire industry that has to reinvent itself. It remains to be seen how the paper mill will continue and what new solutions are available.