Mantua, Italy 31 March 2015 -- Burgo's former newsprint mill in Mantua which has been idle since February 2013 might restart operations. The company accepted a takeover offer made by packaging company Pro-Gest who would produce packaging paper at the mill.
Italian packaging manufacturer Pro-Gest continues on its growth path. Only shortly after announcing the planned takeover of two packaging mills of its competitor Mauro Benedetti the company has reported that it will acquire the idled newsprint mill from Italian producer Burgo. Burgo has accepted the binding offer submitted by Pro-Gest, the company said. The transaction is subject to approval by regulatory agencies. The purchasing price and details of the timeline were not announced.
The Mantua mill, which was rated to produce 160,000 tpy of newsprint, has been idle since February 2013. Pro-Gest had expressed interest in acquiring the site as early as in May last year. However, the negotiations did not yield results. At the time, International Paper was also considered a potential buyer.
Following the acquisition by Pro-Gest, the site would be converted into a packaging paper mill in all likelihood. The company was unavailable for comment but had explained at the time of its earlier bid that rebuilding the machine would need an investment of "not less than €100m". Among other modifications, the width of the paper web would have to be widened by 0.5m in order to produce standard sheets of 2.5 m width, the company said.