May 6, 2011 / 2:07 PM / 7 years ago

UPDATE 1-Fortress Paper to cut up to 60 jobs at Swiss mill

* Says to cut jobs at Landqart banknote printing facility

* Cites delay in launch of some major currencies

* To boost capacity at Germany mill by 15 pct (Follows alerts)

May 6 (Reuters) - Specialty paper maker Fortress Paper Ltd said it will cut 40 to 60 jobs at its banknote printing facility in Switzerland as it faces higher raw material costs and over-capacity due to the delay in launch of some major currencies.

Fortress will use only one of the two printing machines at the Landqart mill in Switzerland until the new currencies, including the new Euro2 and Swiss Franc, are adopted, the Canada-based company said in a statement.

The company, which also owns two other mills, did not say how many employees worked at the Landqart mill that contributes about one-fourth of its total revenue. The mill also makes security papers like passport and visa papers.

The company said it would boost its capacity by 15 percent at its Dresden Mill in Germany to cope with the strong demand for coated and uncoated wallpaper base for wallpaper makers. The mill contributes about 40 percent of the company’s total revenue.

Fortress said the construction of its new research and production facility in Quebec, Canada is expected to be completed in the third quarter.

The facility is near its Fortress Specialty Cellulose Mill, which makes optical security products like the security threads in currency notes.

Shares of the company were up 1 percent at C$42.19 in thin morning trade on Friday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Gopakumar Warrier)

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