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Horizon Pulp and Paper Mill's Future Uncertain

Dec. 3, 2008 - Horizon Pulp and Paper said that on Dec. 1 it re-started its struggling Kehra paper mill in Estonia (Baltic region), but may have to shutdown the operation in 2009 if business doesn't improve soon.

Aime-Kersti Kelder, a board member of Horizon Pulp and Paper, said that if the company fails to gain more orders it will have no choice but to stop operations in 2009.

“We cannot produce at limited capacity and consume all the energy,” Kelder said.

The kraft paper mill on October 28 had to shutdown after natural gas supplier Eesti Gaas refused to continue to supply the mill because of unpaid bills. Since that time, Horizon has reached an agreement with Eesti have gas service restored.

The Kehra mill operates three paper machines and has the capacity to produce up to 64,000 tons of kraft paper, including semi and fully extensible sack kraft, wrapping kraft and some speciality grades. The company exports about 70% of its products to EU countries and the remainder to Africa, Middle East and Asia.

SOURCE: Baltic Business News




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