Cartiera Verde Romanello is facing more than €45m in debts. Newsprint and testliner production has been idle since the beginning of February due to lack of raw materials, but the company is working on a debt restructuring plan to be presented this week at the court of Milan.
Paper machines at Cartiera Verde Romanello (CVR) in Basaldella di Campoformido are standing still. Production had been suspended at the beginning of February due to financial reasons and a shortage of raw materials, the company said. Operations would not restart until these problems were solved.
At the Basaldella paper mill near Udine, CVR operates two paper machines with an installed capacity of 150,000 tpy of recycled paper. PM 1 offers a capacity of 60,000 tpy of newsprint. PM 2 can churn out up to 90,000 tpy of brown and white testliner.
The company said the main reasons for its current financial crisis were a dramatic increase in the price of raw materials and energy, falling paper prices and stricter lending conditions imposed by the banks.