APRIL is to lay off one thousand workers from its Kerinci pulp and paper mill in Riau province and will “temporarily” lay off another one thousand, according to RISI.
APRIL has reduced production at the plant because of reduced demand and raw material shortages. RISI reports that a company spokesman says the company has sacked several hundred permanent and temporary staff. One of APRIL’s two 1.3 million tonnes/yr pulp lines has not been in operation since 2 October 2008.
APRIL’s raw material shortage is partly a result of a police clampdown on illegal logging in 2007. The company still has no permits to log in some of its forestry concessions. APRIL’s spokesman told RISI that the company can only get two-thirds of its raw material, because the police refuse to issue the necessary licenses.
APP’s operations in Sumatra have avoided raw material problems by logging plantations elsewhere in the country. A spokesperson told RISI that the groups has a steady supply of woodchips. Despite lower pulp production, the company has not plans to sack staff.