Russia's Kondrovo mill faces looming bankruptcy

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Russia's Kondrovo mill faces looming bankruptcy

September 11, 2013 - 10:40
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BRUSSELS, Sept. 3, 2013 (RISI) - Russia's Kondrovo Paper company might soon discontinue production at its 37,000 tonne/yr paper mill in the Kaluga region near Moscow due to financial difficulties. The firm has already started the process of massive layoffs, although it did not say how many people are being let go.

In the meantime, a criminal investigation has been initiated over a possible bankruptcy fraud by Kondrovo's management.

According to the local office of criminal investigation in the Kaluga region, the management "has been intentionally concluding disadvantageous deals over the past five years, which led to a considerable worsening of the mill's financials."

Kondrovo's owner, Continental Management, has rejected any such accusations and pinned the responsibility for the mill's poor situation on the local authorities, saying that Kondrovo was denied any help from the local government, such, as for example, sharing the cost of the heat supply and water treatment for the city of Kondrovo.

The Kondrovo mill houses two paper machines, the 24,000 tonne/yr tissue PM 6 and the 13,000 tonne/yr recycled containerboard PM 4.