Valmet initiates union negotiations regarding closing the foundry in Karlstad

Valmet’s foundry in Karlstad has played a key role in delivering large and heavy cast Yankee dryers to the world’s paper producers. In recent years, the industry has undergone a technological shift, with more and more of the global tissue producers transitioning to steel products.

The foundry in Karlstad has long been the only supplier in the world capable of delivering both cast and welded steel Yankee dryers. Due to the decreasing demand for cast Yankee dryers and other cast goods, the company is now initiating union negotiations to shut down operations in Karlstad and focus solely on production of steel Yankee dryers. The total number of manufactured Yankee Dryers will remain the same.

“We have been delivering cast products since 1895, and it’s with a heavy heart that we have been forced to take the decision to initiate negotiations of closing the foundry. However, we must realize that we cannot run a continuous and profitable business with today’s volumes. We will now focus solely on manufacturing Steel Yankee dryers,” says Malin Kilian Director Machinery Technology Unit, Valmet.

Valmet foundry in Karlstad employs 28 people. The company will offer different types of support during the process.

Valmet is planning to maintain the operations to secure the current order backlog which means that closing is planned for the yearend 2025-2026. 

For further information please contact: Malin Kilian, Director Machinery Technology Unit, Valmet Tissue Mills business unit, tel. +46705175337