Investments

Go ahead for the construction of Progroup’s new paper mill

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Progroup www.progroup.ag has unveiled plans for the construction of a new factory in Sandersdorf-Brehna, in Sassonia-Anhalt in Germany. Construction work will start in the first quarter of 2019 and must be completed in the second half of 2020, announced the manufacturer in a statement.

The volume of investments comes to a total of 375 million euros for the construction of the continuous paper machinery, according to the final technical configuration. Progroup’s new paper machinery PM3 will produce recycled testliner and fluting in the weight range from 80 to 150 g/m2. It will have an annual production capacity of 750 thousand tons.

In addition to the construction of the paper mill, the overall project also makes provision for the construction of a separate power station, which will therefore supply the new continuous machine with steam and electricity.

After a Europe-wide search for the ideal site, Progroup decided to construct its new PM3 in Sandersdorf-Brehna because of its geographical proximity to the other two Progroup paper mills, PM1 In Burg and PM2 in Eisenhüttenstadt. Furthermore, the location is well-served by transport networks.

About 140 direct new jobs and 350 indirect would have to be created through investment in the region. The production structures will be built on about 450 thousand square metres of building land on a green site. Together with PM1 and PM2, the new machinery will increase the overall annual production capacity of the Pro group from 1.1 to about 1.85 millions tons.

In addition to factories in Germany, Progroup has branches in the United Kingdom, France, Italy, Poland and the Czech Republic.