Eurovast acquires Fabbriche di Vallico tissue mill to add 20,000 tpy in tissue capacity.
Italy's tissue paper and products manufacturer Eurovast has acquired Fabbriche di Vallico tissue mill near Lucca from the insolvent tissue company Cartiera Eurotec. According to the Bankruptcy Court of Lucca, Eurovast has won the bid for the production site and related assets at the auction in early March and will pay 650,000 €, which corresponds to the initial minimum bid.
Cartiera Eurotec had acquired the Fabbriche di Vallico tissue mill from Wepa Lucca, a subsidiary of Germany's Wepa Industrieholding, in February 2014. The mill houses one tissue machine with a production capacity of 20,000 tpy. Eurotec had to stop production in June 2015 due to financial difficulties and entered insolvency proceedings in September 2015.
A spokesperson for Italy's trade union SLC-CGIL explained that Eurovast planned to resume production at the Fabbriche di Vallico mill as soon as possible and summon back to work the 18 employees that were laid off last year. If everything goes right, this could happen already in May, the SCL-CGIL representative believes.