Business strategies

Varel, no investment for a PM6

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German paper and paperboard manufacturer Papier-und Kartonfabrik Varel has made the decision not to install a new recycled paperboard machine in Wilhelmshaven, Germany, contrary to initial plans. In fact, in 2021, the company had begun exploring several opportunities in Wilhelmshaven for the production of ultralight corrugated paper and thus a significant increase in volume in this product segment. Since then, as a basis for an investment decision, the company had conducted economic and market analyses, explored land and permits, and evaluated machinery and energy considerations. In short, intensive preparatory work, definitely necessary for a major investment.

«The results now available,» reads a statement released by the company, «show us that the uncertainties, particularly regarding framework conditions, are currently too great for such a significant investment. They do not provide a good basis for a responsible decision designed for decades to come. This applies in particular to the dramatic development of construction costs, as well as to the short-term prospects for a competitive supply of green energy, but also to the current outlook for the economy in Germany, Europe, and the world. The signs for this specific project are not quite favorable.

Our success story, on the other hand, continues: we have strong products for the future of sustainable packaging solutions, we are constantly developing our site in Varel, and we are working on the generational task of decarbonizing the paper industry.»