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Ence to appeal judgment of National High Court to Supreme Court for its biofactory mill in Pontevedra, Spain

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Ence to appeal judgment of National High Court to Supreme Court for its biofactory mill in Pontevedra, Spain

July 21, 2021 - 12:37
Posted in:
    MADRID, Spain, July 21, 2021 (Press Release) -
  • The company will appeal the judgment of the National High Court to the Supreme Court and will exhaust all possible legal avenues in defense of the continuity of our biofactory until 2073.
    • We believe that the legal process could take up to 3 years, including appeals to the highest judicial bodies.
  • The company’s strategic plan 2019-2023 includes a project to build a new line of 340,000 tons of TCF pulp of capacity in the Navia biofactory (although it could be larger), which has the land and practically all the permits necessary to start its construction. It would be more efficient tan pontevedra. With the same cellulose price this new line would generate more EBITDA and more free cash flow than the Pontevedra plant.
  • In this way, in parallel to the resource, the company will work on defining the expansion project of its Navia biofactory to compensate or even exceed the result provided by the Pontevedra biofactory. The synergies, together with the efficiency and competitiveness of Ence Navia, would allow to neutralize the impact of an eventual closure of the Pontevedra biofactory in order to continue to meet the demand of its customers.
  • The company has a very solid financial situation, with no net financial debt in the Cellulose business at the end of 2020. In fact, all the debt related to lease liabilities, which mostly correspond to the licence fee of Pontevedra.