Bulgarian Svilosa to build Euro 200 million paper mill by 2010

Jan 19, 2007. /Lesprom Network/. Bulgarian cellulose producer Svilosa plans to invest up to Euro 200 million over the next three years to build a paper mill that will help ease chronic deficits of printing paper in the Balkans, the company's board chairman Krasimir Dachev said on January 11. "It will cost between Euro 150 and 200 million. We hope to start [construction works] next year," Mr. Dachev told SeeNews. The paper mill, to be built in the northern Bulgarian town of Svishtov where the company is based, will have an output capacity of 500 000 tonnes of paper annually and will help offset annual deficits of 650 000 tonnes of paper on the Balkans, Mr. Dachev said. The Balkans are a net importer of paper, he added. There is no producer of offset printing paper in Bulgaria and in its southern neighbour Greece. Mr. Dachev said there was interest from several international financial institutions towards the project but did not name them. Svilosa plans to raise its net profit 4.5 times to BGN 3 million (Euro 1.5 million) this year, as revenue is expected to increase by 27.8% to BGN 78 million (Euro 40 million). The company's net profit should rise to some BGN 23-25 million (Euro 11.8-12.8 million) in 2011, with revenue expected to reach BGN 140 million (Euro 71.7 million), Mr. Dachev said. Svilosa plans to triple its output capacity to 150 000 tonnes of pulp in 2007 by completing a Euro 48 million investment programme. Svilosa is Bulgaria's sole producer of sulphate bleached hardwood pulp. It exports 93% of its output, mainly to European Union member states. The company plans to increase its exports three times over the next couple of years. Svilosa is listed on the Bulgarian Stock Exchange. The company has recently changed its name to Svilocell but it is still referred to as Svilosa on the bourse.