The French producer of corrugated material Papeterie Saint-Michel is being liquidated, EUWID reports. The company has been facing challenging financial difficulties for quite some time and has been placed in receivership since April this year. On 3 October, the commercial court of Angoulême in France placed the company in liquidation.
Papeterie de Saint Michel owns two paper machines producing recycled corrugated case material in grammages between 115-170 g/m². The two machines have a combined capacity of 75,000 tpy.
The company is owned by the group Groupe Thiollet, which also operates a packaging plant not being affected by the move.
According to Euwid, smaller paper mills with older machines are having a hard time today. Demand is too weak and competition too fierce.
The company has itself complained about the reduced demand in the packaging sector and the fall in selling prices. At the same time, production costs remain high.