Papcel announces changes in organizational structure, to close France's ABK Groupe

Since 2015 PAPCEL has experienced a majorly successful business period marked by revenue growth, realization of new projects and development of its business network. This considerable economic and technical growth is connected with series of acquisitions which took place in the past resulting in significant technical and technological boost, know-how enhancement and expansion of activities on foreign markets.

PAPCEL Group reached excellent economic results in the last two years. Over the last five years PAPCEL took over management of five competitors thereby substantially strengthening its competitive position on the market and joined the world’s leading paper industry suppliers.

One of the acquired companies of the time was French company ABK Machinery whose assets were purchased by PAPCEL in 2014. The next acquisitions came in 2016-17with the purchase of GapCon Tissue (now called ICONē S.r.l.) and PMT, both located in Italy. These two acquisitions reinforced the manufacturing program for packaging papers, special types of papers and tissue for PAPCEL Group. Both new acquisitions owned patented solutions for their products and offer state-of-the-art technology for paper sheet formation, its pressing, drying, coating, etc.

The gained know-how and the amount of realized references in the area of packaging papers and tissue surpassed existing ABK Groupe portfolio.

ABK Groupe in its time in the Group realized several new projects related to reconstruction and modernization of paper machines. In the long run it however achieved poor economic results. Despite the series of changes to its inner organizational structure, satisfactory economic results were not achieved. With the chance to offer more sophisticated technology of PMT in the same production segment, a decision has been reached by management to terminate all operations of ABK Groupe. 

Before the decision to terminate mutual cooperation was made, ABK Groupe’s best employees had been addressed with offers for further employment opportunities in PMT. PAPCEL Company assumes all commitments connected with completion of currently open business cases of ABK Groupe and guarantees their successful finalization.