Pro-Gest: Mantua packaging paper mill to start production in October

Coming soon. Pro-Gest postpones Mantua mill machine start-up to October.
Start-up of Mantua mill will add 405,000 tpy in new capacity
to the recycled containerboard market in Italy.
31 Aug 2020 − 

The containerboard market is expected to recover slowly in the coming months, but the possibility of a second phase of the Covid-19 pandemic remains an element of uncertainty, according to Pro-Gest.

Italy's paper and packaging group Pro-Gest plans to fire up its new recycled corrugated case material machine at the mill in Mantua in October. Mantua RCCM mill is geared to produce recycled fibre-based fluting and testliner grades in basis weights of 70-160 g/m².

Pro-Gest Mantua mill had received all permits necessary by the end of May 2020 and actually planned to take the new 405,000 tpy containerboard machine online by July. The start-up was then delayed to September, and now to October.

In the first-half 2020 report, Pro-Gest did not explain why the machine start-up was postponed once again, but the group hinted at the weak demand situation on the domestic market.

According to Pro-Gest, the start-up of the Mantua mill would compensate for the loss in production volumes due to the machine stoppages at other mills in summer. "This gives the management hope of being able to obtain also in the second half of the year the same economic results obtained so far also taking into account a recovery which, even if weak, should manifest itself in the coming months," Pro-Gest said.

"However, there is still an element of uncertainty linked to the possibility of a second phase of the pandemic that could manifest itself in the coming months and which continues to spread a strong weakness on domestic demand [...]"; the group announced.

This article is part of our coverage on Pro-Gest and the corrugated case material market in Italy.

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