Chinese-Croatian joint venture Dravacel will produce 500,000 tpy of coated graphic and packaging paper, says PAN Papirna Industrija.
Croatian paper and packaging manufacturer PAN Papirna Industrija has joined forces with China International Investment Stock to build a new pulp and paper facility in Slatina, in north-east Croatia. According to PAN Papirna Industrija, a financing agreement worth €320m has already been signed with the Chinese investment group who will hold a 70% stake in the joint venture company Dravacel. Another 30% will be held by PAN Papirna Industrija.
Construction of the greenfield facility is to start in April next year and the entire project is scheduled for completion in 2015, Marinko Mikulić, CEO of PAN Papirna Industrija told EUWID. Upon completion, Dravacel would have a production capacity of 250,000 tpy of pulp and 330,000 tpy of coated graphic paper. PAN Papirna Industrija would also produce up to 200,000 tpy of recycled and virgin-fibre packaging paper at the Slatina site, once the company had transferred and refurbished the paper machine from its paper mill in Zagreb, which is scheduled for closure in the middle of next year, Mikulić explained.
Dravacel will reportedly use a perennial grass hybrid, miscanthus giganteus, as a feedstock for pulp and paper production. In addition, a geothermal power plant is to be build at the site to provide power to the pulp and paper mill.
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