Gascogne plans to install a new paper machine for sack kraft paper and machine-glazed paper at its Mimizan mill. It will replace three older machines. The company has secured important loans to finance its investment programme for the next years.
French paper and sacks manufacturer Gascogne has signed a syndicated loan contract worth €126.8m with a banking pool and a contract worth €50m with the European Investment Bank (EIB) to finance its Capital Expenditure programme for the 2022-2026 period. The investment programme mainly includes the installation of a new paper machine at the company's Mimizan mill in Southern France. Gascogne said it had just entered into exclusive negotiations with a paper machine manufacturer with the aim of finalising the purchase agreement before the end of the year.
The new PM is to replace three older machines at the site. Gascogne operates a total of four paper machines in Mimizan which have a combined capacity of 150,000 tpy of sack kraft paper and machine-glazed (MG) paper. The modernisation will increase output of the site as Gascogne will be able to make full use of the plant's pulp capacities. It will also reduce production costs, improve paper quality and improve energy efficiency.
The company intends to invest a total of €300m in the 2022-2026 period. To finance the investment programme, it has set up a financing plan which includes the investment loans mentioned above and a future increase in capital of at least €10m, amongst others. The installation of the paper machine, including the building and the technical environment, will cost €220m, according to Gascogne. In addition, the reinforcement of the existing industrial assets is planned to be pursued for €80m.
Gascogne is a manufacturer of sack kraft paper, paper sacks and packaging and protection solutions such as release liners or gummed products. The group operates nine plants in France, Germany, Greece and Tunisia. The company also has a wood division and operates four sites in the sector. Overall, Gascogne employs 1,700 people.