Bulgaria wins foreign funds

Pirinhart is splashing out on a modernization project at its mill in Razlog, Bulgaria. The company is to carry out various upgrades as part of a $7 million investment project.

Paper capacity is set to rise by 20,000 tons/yr following a PM rebuild. The project involves a new winder and modifications to the wire and drying sections. The rebuild will boost the existing capacity of kraftliner and testliner to 120,000 tons/yr.

The mill is also upgrading its recovery boiler to increase unbleached kraft pulp capacity from 70,000 tons/yr to 100,000 tons/yr.

Zveta of Switzerland and Valfin of Italy bought 51.8% of the company’s shares under a privatization program carried out in June 1997. The two foreign investors hope to increase this stake shortly.

Lesilhart looks ahead: Zveta and Valfin’s interest in Bulgaria does not stop at the Pirinhart mill. The two parties also control 71% of the Lesilhart pulp and paper mill in Silistra. Lesilhart has a capacity of 40,000 tons/yr of mechanical pulp and 30,000 tons/yr of woodfree and woodcontaining papers.

Lesilhart will also benefit from a $4-5 million overhaul. There are plans to add an extra 10,000-15,000 tons/yr of paper capacity.

A decision on this project is expected this month. If the plans go ahead, the new equipment would come on stream in 1999.

tags
recovery boiler mechanical pulp kraft pulp pulp and paper mill modernization project privatization program pulp and paper investment project foreign investors razlog 5 million stake bulgaria italy switzerland

This entry was posted on Friday, February 20th, 1998 at 10:19 pm and is filed under kraft liner news. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.