Norwegian book paper producer Hellefoss restarts after finding new investment, but sister pulp-making company Vafos still down; land on which the mills sit being leased from new investor, a metal recycler, while two original investors remain

LOS ANGELES , May 28, 2013 () –

An influx of new investment has allowed the Hellefoss AS book paper mill in Norway to come back online, but its sister company Vafos AS in Norway has not restarted its mechanical pulp operations, Euwid reported on May 28.

Both mills were closed when their parent company, Norway-based Hellevad AS, filed for bankruptcy on April 5. The new parent company is called Heva Holding and consists of two former investors and new investor Hellik Teigen, a metal recycling company.

The combined value of Hellefoss and Vafos was an estimated at 30 million Norwegian kroner (US$5.1 million), reported Euwid.

It is uncertain when the 75,000 tonnes/year Vafos mill will resume operations, but customers are now being contacted to assure a solid order base for when the mill restarts, said Trond Lindborg, managing director of Hellefoss.

Hellefoss, a 50,000 tonnes/year, integrated producer of book paper made from mechanical pulp, restarted May 21 under the name Hellefoss Paper AS, said Lindborg, noting that the mill is operating well, has sufficient orders, and made its first delivery May 27, Euwid reported.

Hellik Teigen acquired the site of the two mills, thereby generating more capital for Hellefoss and Vafos, and both mills now lease the land for their operations and pay rent to Hellik Teigen, he said.

The other two investors are Roar Paulsrud and Norwegian company Brinkbygg AS, both of which were among the three original investors; while the third, Terje Haglund, withdrew as an investor.

Haglund and Paulsrud also are investors in Norwegian kraftliner producer Peterson AS and more recently acquired bankrupt Vida Paper, a Swedish papermaker that is part of the newly-formed company Lessebo Bruk, reported Euwid.

The primary source of this article is Euwid, Gernsbach, Germany, on May 28, 2013.

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