Duni AB to shut MBAL line operated by Rexcell, focusing its airlaid business in tabletop market

CLOVERDALE, CALIFORNIA, February 21, 2013-

Duni AB's Rexcell Tissue & Airlaid division will shut down one of its two nonwovens lines in the first quarter of next year, the company announced last week. The line to be closed makes multibonded airlaid pulp for hygiene applications, and according to the company it has not been profitable. After the closure, Duni will continue to operate a latex-bonded airlaid line serving its core tabletop business.

The company said about 110 employees will be affected, out of about 370 at the location. Negotiations started February 13 with the relevant trade unions; and the one-year lead-time announced for the closure is thought by one source to be related to labor rules as well as customer contract obligations.

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