- Press Releases
(SeeNews) - Mar 18, 2014 - Spanish paper manufacturer Iberpapel has totally suspended its investment programme, due to the losses caused by the energy reform of the government.
The different modifications of the regulation framework have threatened the competitiveness of Iberpapel, as they provoked an increase in energy costs, daily Expansion said.
Hence, the development plans of the company had to be changed and the investments to be suspended, as Iberpapel's co-generation plants are not longer able to ensure competitive paper production, Expansion added.
The reform provoked losses for the members of Spanish paper association ASPAPEL, with some of them announcing plans to relocate their production activities outside the country.
Iberpapel had invested EUR 50 million (USD 69.6m) in the construction of two co-generation power plants, running on biomass and natural gas, respectively.
The profit of Iberpapel went down by 58.6% on the year in 2013 to EUR 7.2 million, with sale of electricity declining by 8.4% to EUR 46.1 million.
(EUR 1.0 = USD 1.391)