While until now newsprint and magazine paper accounted for 90% of the production of Slovenian paper mill Vipap Videm Krško, its share will fall by half within three years.
As a part of the already started restructuring, the new Czech owner RIDG Holding wants to reorient the company more towards the production of food packaging paper. It invests more than a quarter of a billion Czech crowns in the modern technologies that will enable it.
RIDG Holding took over Slovenian paper mill last year and the company under its leadership ended the calendar year with a significantly positive operating profit EBITDA of € 7 million and a positive cash flow.
The new owner, in addition to redesigning the company’s processes, also immediately started investing in technology modernization and employees development, in order to make the company more flexible.
One of the key innovations in Vipap paper mill is the expansion of the product range
In addition to newsprint, magazines and advertising leaflets, currently also paper bags, carrier bags and laminated paper is being added.
This segment of production is on the rise due to the fact that a number of European countries have decided to replace the plastic packaging with paper. In addition, new technologies will make it possible to bring to the market the food packaging, that is durable and at the same time fully recyclable.
In addition to the expanding product portfolio, the Slovenian government’s support programs also helped Vipap Videm Krško to maintain employment during the coronavirus crisis.
Like many other countries, including the Czech Republic, it has introduced the so-called kurzarbeit. The extraordinary commitment of employees also played an important role.
Management of Vipap Videm Krško now estimates that in the event of a favorable development, the company could return to pre-crisis level at the end of this year.
Completion of the restructuring, which is to direct the paper mill towards long-term competitiveness and growth, is planned for the turn of 2021 and 2022.