The war in Ukraine and exorbitant energy prices are leaving their first traces in the paper industry. Packaging group Pro-Gest has announced a temporary production stop at all of its six paper mills in Italy.
Italy's integrated tissue und packaging producer Pro-Gest has announced that production at the group's's six paper mills operating in Italy has been suspended. The company said that following the rapid escalation of natural gas prices, now at historic highs, it was resorting the force majeure and had decided to temporarily stop production.
Pro-Gest operates nine tissue and packaging paper machines at its six paper mills. Packaging production is not affected and the packaging plants will continue producing normally for the time being, the company reports. There are no further details available at the moment, for example concerning raw material supply of the packaging plants during the downtime.
"We are closely monitoring the war situation and are deeply saddened for the Ukrainian people hoping for an immediate solution to the armed conflict. Also because of the severe tensions we are witnessing, we have to record that the price of natural gas, now more than ten times higher than twelve months ago, has tripled in little more than a week. We will do our best to support our customers by assessing the delivery situation on a case by case basis. We sincerely hope to be able to resume production as soon as the situation allows," the company said in a statement.
To learn more about gas prices and Pro-Gest's activities in Italy please read our e-paper, which will be available from 9 March. Online subscribers can access it here.
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