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Papierfabrik Scheufelen, a producer of coated woodfree fine papers and packaging board based in Lenningen, Germany, has initiated insolvency proceedings at the local court of Esslingen.
The 340-staff company, which achieved sales of $96.3m in 2017 and produced 104,000 tonnes of paper, said it has been operating in a market “facing dramatic overcapacities and margin pressures”.
The company said it had reported major losses in the years preceding the acquisition but that its situation had “improved significantly” since, as a result of numerous restructuring measures and the strategic reorientation to the packaging sector. The business also recently introduced the fresh fibre product Grasspaper, which it said “laid promising ground for a sustainable future”.
The development and market launch of Grasspaper was accompanied by Packaging Campus Lenningen.
“Losses and negative cashflows were reduced substantially. However, massive price increases for pulp as well as chemicals in 2017 made it impossible to achieve the turnaround,” said the company in a statement.
“The promising high margin packaging product lines Phoenolux and Grasspaper, together with the stable market share and leadership position in coated fine paper products – in particular Heaven 42 – were not yet able to sufficiently compensate the current cost situation under the existing product mix.”
Scheufelen said its production and sales will carry on for now and staff will continue to be paid through to March 2018, with their salaries covered by the Federal Employment Agency’s insolvency allowance.