The low operating levels of Fortress Paper's Landqart banknote and security paper mill in Switzerland have become a serious problem that prompted the company to sell its subsidiary. The company now intends to focus on its dissolving pulp business.
Fortress Paper has announced the sale of its subsidiaries Landqart AG and Landqart Management and Services AG, which form the company's security paper business, to the Swiss National Band and Orell Füssli Holding. The transaction price was put at CHF21.5m (€18.3m). With the sale, Fortress Paper no longer operates in the security paper products segment.
Fortress Paper explained that Landqart - as reported in November - was confronted with the loss of material purchase orders by one of its significant international customers. "As a result, Landqart required an injection of new capital and continued financial support of a magnitude that Fortress Paper as the parent company deemed as not strategically viable," said Chadwick Wasilenkoff, CEO of Fortress Paper. The company now wants to focus on growing its dissolving pulp business.
The Landqart mill produces security papers such as banknote paper, passport paper and visa paper. Fortress Paper runs another site in Thurso, Canada, which produces dissolving pulp and northern bleached hardwood kraft (NBHK) pulp on a swing machine.