June 12th, 2023

PM6 pre-planning: No investment due to cost explosion and current uncertain outlook for the economy

We have 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.

Company Press

In 2021, we began to explore the current opportunities available to our company in Wilhelmshaven for the production of ultra-light corrugated papers and thus a significant increase in volume in this product segment. Since then, we have 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.

These results before us show that: there is too much uncertainty at present, 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.

Our success story, on the other hand, continues. We have strong products for the future of sustainable packaging solutions, we are constantly developing our site in Varel and are working on the generational task of decarbonising the paper industry.

Company Press