The German papermaker had undertaken intensive preparatory work in order to explore opportunities for establishing a growth project. Unfortunately, the economic environment is sending a clear signal: the overall situation is too uncertain to undertake such a significant investment.
In 2021, the company began to explore the current opportunities available in Wilhelmshaven for the production of ultra-light corrugated papers and thus a significant increase in volume in this product segment. Since then, Varel collated analyses of the market and economy, land and permits, machine and energy concepts and much more as the basis for an investment decision – a very complex task.
However, the company points out the big current uncertainty, « especially in terms of the economic environment, for such a significant investment. A sound basis for a responsible decision intended to last decades is lacking. This applies in particular to the dramatic development of construction costs as well as the short-term prospects of a competitive supply of green energy, but also the current outlook for the economy in Germany, Europe and the world. This does not augur sufficiently well for this specific project. »
However, the company explains that its success story will continue with sustainable packaging solutions, constant development of the site in Varel and decarbonization.
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