€16 million in increased electricity costs has forced Swedish paper mill Lessebo Paper to halt production on August 31, with future production now depending on daily electricity prices.
“The electricity cost for Lessebo Paper has unprecedently increased from €3 million to €19 million per year,” the company said. “The drastically increased electricity price is forcing Lessebo Paper to halt production as of today Wednesday, August 31. A decision for production will henceforth be taken daily depending on the electricity price.”
Jens Olson, CEO at Lessebo Paper: “Since autumn 2021, the electricity price has gradually increased, and we cannot see that the increases have slowed down, rather to the contrary. Historically, the winter period usually entails high electricity prices and the fact that we already have record high electricity prices in August is a concern.”
Energy prices are reaching record levels across Europe as Russia cuts back shipments of natural gas to the EU in retaliation for Ukraine-related sanctions.
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| (image - Lessebo Paper) |
The spot price for electricity in south of Sweden has significantly increased for the past months. On Wednesday, August 31, the electricity price was EUR 518,73 per MWh, resulting in a daily electricity cost of more than €58,000 for Lessebo Paper.
“The paper industry is electricity-intensive, and the electricity price increases will most likely, not only affect Lessebo Paper, but several industries in south of Sweden,” the company said.
Lessebo’s agent in Australia/NZ is Stephen Hawkes at Stephen.Hawkes@elof-hansson.com.au
