EU Commission confirms investment supplements for Propapier

The European Commission has confirmed that the investment supplements for Propapier’s paper machine #2 and the infrastructure measures at the paper company’s Spree industrial region in Eisenhüttenstadt, Germany, are in conformity with European law.

Propapier, based in Germany, produces various corrugated products exclusively from recovered fiber.

In a press release, Propapier’s CEO Jürgen Heindl says, "We have been entirely confirmed in our interpretation of the law by the European Commission. We were convinced of the legitimacy of the measures from the start. The very long proceedings bound capacities that are now once again free for our business activity.”

In April 2008 the European Commission authorized German authorities to fund a new plant for corrugated board in Eisenhüttenstadt, Germany. The funding would come through investment supplements and total around 43.4 million euros (US$54.6 million). The Federal State of Brandenburg, Germany would provide the funding for the project.

The re-examination of the funding was necessary because a competitor filed a suit against the initial approval decision with the European Court in Luxembourg. The court reversed the approval for formal reasons.

Propapier is a division of Germany’s Progroup AG, which is active in the production and sale of corrugated case material and corrugated board.

Propapier’s newly built paper plant in Eisenhüttenstadt produces two types of corrugated case material: testliner and fluting, both made from recycled fiber.