Kragero, Norway 28 May 2013 -- Hellefoss has restarted its book paper machine. Two of the three former owners of the insolvent company believe in its viability and invested again. 

Norwegian book paper manufacturer Hellefoss resumed production on 21 May under a new name. The company, which was forced to file for bankruptcy on 5 April 2013, has found investors and will be known in future as Hellefoss Paper AS, managing director Trond Lindborg confirmed to EUWID.

Hellefoss AS filed for bankruptcy in April along with sister company Vafos AS and parent company Hellevad AS, and has since been on the lookout for investors in order to resume production of book paper and mechanical pulp. The new investors are Roar Paulsrud and Norwegian company Brinkbygg AS, both members of the original trio of owners. The third original partner, Terje Haglund, has withdrawn. Holdings of Roar Paulsrud and Haglund included kraftliner producer Peterson AS and they have since acquired insolvent Swedish papermaker Vida Paper as part of the newly founded company Lessebo Bruk.

A new investor in Hellefoss and Vafos is metal recycling company Hellik Teigen which acquired the site of the paper and mechanical pulp manufacturer. The move generates additional capital for Hellefoss und Vafos, Mr Lindborg explained. The companies now pay a lease fee for the premises to Hellik Teigen.

The total value of Hellefoss and Vafos was estimated at around NOK30m. The new parent company of the pulp and paper producers is called Heva Holding.

Hellefoss Paper is an integrated manufacturer of book paper made from mechanical pulp. The company’s paper machine has a capacity of 50,000 tpy. Vafos Pulp has until now exclusively produced unbleached mechanical pulp for sale on the open market. The company has an annual capacity of 75,000 t. Founded in 1889, the company suffered a serious setback when it lost a major customer at the beginning of the year.

It is still unclear when Vafos Pulp will resume production. The company is currently visiting existing and potential customers to ensure that it has a solid customer base when resuming production, Mr Lindborg said. Hellefoss, however, has smoothly resumed production and the order situation is reportedly satisfactory. The first consignment of paper was delivered on 27 May.