Ence freezes investments in Pontevedra plant, wants to concentrate on Navia plant

Photo courtesy of Ence
14 May 2019 − 

„The board of Ence has decided to freeze all non-committed investments in our Pontevedra bio-factory, given the legal uncertainty generated by the change in state criteria concerning the extension of Ence's concession,“ said Ence President Ignacio Colmenares when announcing the company's quarterly results.

Ence’s board was now looking into opportunities to concentrate all investments at Navia bio-factory, thereby maintaining the company's targets for growth, diversification and financial stability according to the Strategic Plan 2019-2023.

More specific, the company is now analysing in detail the possibility to double the capacity of the second pulp line in Navia, giving it a flexible production capacity of 340.000 tpy of BHKP or 200.000 t dissolving pulp, Mr Colmenares said. The investment in such a capacity expansion would amount to roughly €450m, „which would fit perfectly with the Strategic Plan investment budgets for this business,“ he commented.

According to the original Strategic Plan, the company had earmarked, among other things, a €320m investment in Pontevedra plant. Legal uncertainty concerning the duration of the concession for the use of the land on which the plant is located has put a question mark on this investment. The National Court of Justice in Spain has to rule whether 2033 or, as originally expected, 2076 would be the final year of the concession. What is more, there is no alternative site for the plant in Galicia in northern Spain, Ence stated in a release from 20 April.

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