Capital increase for Cartiere Pigna


Giorgio Jannone, Chairman and majority shareholder of the Cartiere Paolo Pigna (Cpp) group convened an extraordinary shareholders’ meeting that resolved a share capital increase of 4.5 million euros to be completed by year end. This decision follows a recapitalisation of 3.5 million resolved last November, that was not subscribed by last April. It cannot be excluded that this capital operation may result in the joining of new shareholders. It had become necessary to strengthen the equity after Cpp closed 2013 with a loss of 3.6 million, following the negative 11.5 million of the previous year. The consolidated position also fails to show any encouraging results, with liabilities worth 4.8 million. The difficulties of Cpp stem from a decline in year on year production from 45.4 to 42.7 million, even if the share of revenues in the technical paper segment for schools in large-scale retail has grown from 50.3% to 54.2%. The end customers of Cpp have opted for cheaper products to the detriment of rich products and the «Pigna Moda» line. The technical paper line, which is concentrated in the plant of Alzano Lombardo, sees turnover dropping year on year of 5.3%, equal to approximately 2 million, expressed as -0.8% in volumes and -4.6% in average price of sale. The other industrial segment of envelopes also suffers, with turnover down 2.3% (-2.5% in volumes and +0.2% on average price of sale).