Burgo to Invest €250m
Vincenza, Italy 05 June 2014 -- Burgo has announced the approval of its new Industrial Action Plan for the 2014-2018 period. The company is planning to invest €250m and take measures to adjust capacity.
Italy's Burgo Group has given some insights into its Industrial Action Plan for the next five years. The company said that the plan called "Burgo 2020" had recently been approved by its Board of Directors and referred to the period 2014-2018 during which investments of around €250m would be made. It further provided for "significant programs and measures aimed at containing operational costs and matching the production capacity of the group to the demand trend", Burgo added. The company did not specify what kind of investments it intended to make and if closures would be implemented. The plan was not yet presented to Burgo's employees but a company spokeswoman said this would happen in July, adding that more details would be available then.
A developing plan has also been approved for Burgo's Mosaico subsidiary. The company hopes to be able to further strengthen its specialty paper business and aims at expanding its presence on this market. The paper producer spun off its specialty paper division at the beginning of the year and incorporated it into the newly founded company Mosaico Srl. The sector remains an important anchor for the company that is struggling with shrinking graphic paper demand and receding orders.
The negative trend in the graphic paper segment has impacted the company's 2013 financial results, according to Burgo. With sales reaching €2.39bn - a drop of 8.4% compared to 2012 - the company booked a net loss of €147m in 2013. Financial debts fell by 3% year-on-year and amounted to €955m in 2013. The operating profit stood at €92m.