German paper mill Zanders has opened insolvency proceedings, citing reasons including increases in raw material and energy costs.
The company said that following its acquisition by current owner Mutares in May 2015, and with the support of its employees, important restructuring successes were achieved, a considerable part of its investment and repair bottleneck was eliminated and its processes were “significantly improved”.
But despite sales growth of an average of 12% between 2015 and 2017, the company said price increases for required raw materials – pulp, chemicals and coal for its own power plant, had a negative impact on its restructuring. In the past 12 months alone, it said the cost of these raw materials had risen by more than 40%.
Following a request from Zanders’ management to begin the insolvency proceedings, Cologne District Court appointed lawyer Marc d’Avoine as appraiser on 22 June.
He has now been appointed as provisional insolvency administrator and will manage the business in collaboration with his team as well as restructuring director Igor Ferlan and external consultants. Zanders is the latest German paper mill this year to enter insolvency proceedings following Feldmuehle Uetersen and Papierfabrik Scheufelen in January.