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Feldmuehle, a German producer of paper for various packaging applications including food and beverages, has announced it is ceasing operations.

The company cited ‘unplanned market events,’ as well as industrial electricity prices and ‘ever-increasing new bureaucratic hurdles’ as factors in its struggle to remain commercially viable.

In a statement released yesterday, Feldmuehle said it will no longer be able to continue operations at its site in Uetersen, near Hamburg, in a sufficiently competitive manner in the long-term, noting that there is ‘no desire for energy-intensive industry to remain in Germany’.

The company has ceased paper production after 120 years of manufacturing in Uetersen. It will finish selling and shipping paper produced in the coming weeks.

The Uetersen paper mill employed around 200 people, all of whom will be impacted by the business’ closure. According to Feldmuehle’s website, it was capable of processing around over 80,000 tons of raw material each year.

Feldmuehle wrote in its statement: “In recent years, our company has made high-quality, capital-intensive investments in sustainability and energy efficiency. We have optimised and modernised processes, committed ourselves to training the next generation, developed new products and reduced our costs – all in a highly competitive environment. We were confident that we would achieve a turnaround.”

The company added: “We would like to take this opportunity to thank all our employees who have supported us over the years – despite many personal sacrifices. They fought to the end and always believed that we could maintain our position in the market in the long term. We would also like to thank our business partners for their decades of trust and excellent cooperation.”