Burgo Italian Newsprint Mill Could be Sold, Converted to Packaging Grades

Burgo Group's idled newsprint mill in Mantova, Italy, could soon be sold and rebuilt into a packaging paper mill, according to a report this week by EUWID Pulp and Paper, Germany, which said several sources confirmed that two packaging companies have submitted takeover offers. For several months, the report notes, word has been circulating on the market that Italian Pro-Gest group is interested in Burgo's site and that the parties have been in discussions. Italian trade union Slc Cgil and several local dailies now report that International Paper, Memphis, Tenn., USA, which already runs four packaging mills in Italy, has also expressed interest and made an offer to take over the site. 

 

Should the mill be acquired by either of these companies, it is likely that its existing newsprint machine, which has a capacity of 160,000 metric tpy and a width of around 7 meters, will be rebuilt to produce packaging paper. The article noted that a spokesman of the Slc Cgil trade union estimated that the capacity of the rebuilt machine could touch 200,000-250,000 metric tpy. 

 

In the article, Pro-Gest said that rebuilding the machine would need an investment volume of "not less than EUR 100 million." About 100-120 employees of the mill's former workforce of about 190 could be recalled, the company said.