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Better cost organisation is to secure Virginal Paper's future

29 Aug 2018 − 

Virginal Paper, formerly Idempapers, has resumed production under new management in mid-August after months of downtime. The mill had to file for insolvency last year and was idle for over a year. Terje Haglund, CEO of the newly founded company, explains in a EUWID interview why the project Virginal Paper in Belgium is nevertheless promising and what plans the company has.

Mr Haglund, together with other investors you took over the specialty paper mill in Virginal-Samme. You are not new to the paper industry. Can you tell us something about your background in this business segment?

We have been in the pulp and paper industry for nearly 20 years and were mainly involved in Scandinavian operations. We were the funders of Estonian Cell, a BCTMP pulp mill in Estonia. We acquired The Peterson Group in 2006, and sold it in 2012.

Which was your last project in the paper industry?

Lessebo Paper in 2013. (Editor's note: Lessebo was founded in 2013 to operate the woodfree uncoated paper and pulp mill acquired from insolvent Vida Paper).

Idempapers had been in financial difficulties for quite some time and was ultimately forced to file for insolvency. How do you think Virginal Paper will overcome these problems in the future?

Thanks to our cost consensus approach, and by entering into the added value product range within the specialty paper segment.

Idempapers used to produce the same value added specialty papers, but failed.

Their previous cost base was far too high. We build on a lean organisation and aim for cost reductions throughout the entire operation. Also, we are focusing on the higher end of the specialty paper market.

What products are these?

We are going to produce specialty paper for technical application such as labels, flexible packaging and clay coated kraft. The worldwide market for these products is growing between 2 and 4% yearly.

Read the full article in issue no 35 of EUWID Pulp and Paper, published on 29 August.

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