Hope has returned to the town Virginal Same 30 km outside Brussels in Belgium. The former bankruptcy and closed paperwork Idempapers now re-launches the business with the help of expertise and capital from Sweden and Norway. Thanks to the joint venture, where Avida contribute with a part of the funding, 70 new jobs are now being created in the Belgian city. The mill is already up and running, now under the new name Virginal Papers.
"I’m very glad that we can contribute to this big and important project by being one of the participants in financing this paper mill," says Tord Topsholm, CEO at Avida. With the help of us 70 people will be able to go back to their jobs on the previously closed paper mill.
Cooperation with the Belgian state fund
The Norwegian-Swedish investment group led by Terje Haglund, new CEO of Virginal Paper, with many years of experience in the pulp and paper industry, recently acquired the Belgian paper mill Idempapers, with funding from the Belgian state fund Sogepa and Avida.
"It feels very satisfying for us to do business with Sogepa and the group around Terje Haglund," said Jessica Sparrfeldt, head of Business Finance at Avida. We really believe in the future of Virginal Papers and it feels very good that we can help former employees to get their old jobs back.
"Avida has been and is an important partner for Virginal Paper," says Terje Haglund. Through a professional and flexible approach, they helped make necessary working capital available so that we could focus on the operational challenges and create the conditions for healthy and sound development.
Terje Haglund's investor group makes the acquisition together with Sogepa, whose purpose is to invest locally in Belgian Wallonia. Avida's contribution to the deal is that the company put in place a factoring solution to ensure liquidity for continued growth.
"When Virginal Paper is now starting up their production, turn over will grow rapidly, which will require that as much liquidity as possible to be released for that growth, and factoring is an extremely appropriate solution in that context," said Jessica Sparrfeldt.
For further information please contact:
Tord Topsholm, CEO at Avida, Telephone: +46 72-402 44 35. E-mail: tord.topsholm@avida.se
Facts
Virginal Papers
Virginal Papers, former IdemPapers, is a Belgian paper mill founded in 1834. Virginal Papers produces and markets high-quality specialty papers. With its industrial tradition and highly qualified staff, the company has become famous for producing innovative quality products.
New owners
A Swedish-Norwegian investor group led by Terje Haglund, CEO of Virginal Paper, with many years of experience in the paper industry, makes the investment together with the Belgian state-owned investment fund Sogepa.
Sogepa
Sogepa is a government fund with the purpose of investing locally in Belgian Wallonia.