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Papeteries Alamigeon struggles and hopes to be acquired

13 Jul 2020 − 

The coronavirus crisis has not helped Papeteries Alamigeon, which had already been in difficulties before the outbreak. The company is threatened by closure if no buyer is found by late August.

Papeteries Alamigeon, a French producer of uncoated virgin-fibre papers, is in financial trouble and hoping to be acquired by a potential investor. The company, which has been in receivership since the beginning of March, has until the end of August to find a buyer or it may have to shut its doors permanently, a company spokesperson told EUWID. There are reportedly two interested parties, and one of them is described as promising.

Production continues in the meanwhile, according to the spokesperson. The mill in western France has one paper machine with a capacity of around 15,000 tpy and employs approximately 30 people.

Papeteries Alamigeon had many plans and hopes now to be able to continue its projects under new ownership. The company has been struggling with weak demand for its products for some time, due in part to digitalisation, and the coronavirus crisis made the situation even worse, the spokesperson said.

Papeteries Alamigeon produces uncoated virgin-fibre paper and board, white and coloured, in grammages ranging between 90 and 450 g/m². Its products include papers for offices and schools such as bristol paper and office folder paper. The company is in the midst of diversifying and adding new products to its portfolio or waiting for certification. But this takes time and the company was placed into receivership in the meantime, the spokesperson said.

Papeteries Alamigeon was already in receivership in 2013 and was able to exit the process when the company was acquired. At that time, the company was already talking about switching over to making promising products for the food sector or paper for use as a substitute for plastic. According to the spokesperson, the paper machine and the slitting and sheeting parts only need to be upgraded and not completely rebuilt in order to manufacture the new products.

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