Papeterie de Bègles to be put up for sale

Papeterie de Bègles produces paper for plasterboards
Papeterie de Bègles produces paper for plasterboards
22 Oct 2020 − 

The Etex Group wants to part with its French producer of paper for plasterboard Papeterie de Bègles. The mill is not viable and needs to be modernised.

Belgian building materials manufacturer and distributor Etex Group is planning to bid farewell to its French subsidiary Papeterie de Bègles. Papeterie de Bègles produces recycled paper for plasterboards with a capacity of 75,000 tpy and employs around 90 workers. The paper mill primarily supplies the Building Materials division of its parent company. Etex now wants to launch a process of finding a buyer for the paper producer.

Explaining its reasons for the divestment, Etex said that the paper mill was not part of its core business so making the significant investments needed to modernise the location did not make sense. The company noted that Papeterie de Bègles had a hard time staying economically viable for several years and the Covid-19 pandemic intensified its problems. This year, the paper mill is expected to post a loss of several million euros.

The group would have to invest €50m to update the site. And even then, the mill, as a lone warrior, would have to compete with much larger market players specialising in this field, Etex wrote. Since the economic outlook was also clouded in uncertainty, Etex now wanted to sell the company if possible, it said, expressing hopes that a new owner would be found and a possible new direction taken for the mill that would allow it to retain its workforce.

Etex is a building materials company operating 100 production sites in 42 countries. The group employs 13,000 workers around the globe and generated revenues of €2.9bn last year.

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