German paper and board producer Papier- und Kartonfabrik Varel has decided not to install a new recycled containerboard machine in Wilhelmshaven, Germany, as originally envisaged, according to EUWID.
“Unfortunately, the economic environment is sending a clear signal: the overall situation is too uncertain to undertake such a significant investment”, Varel says in a press statement.
In 2021, Varel 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, Varel has 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”, Varel argues.