A paper mill in Wetterau, Germany, has filed for insolvency after nearly 200 years of operation. The company, SPO, which includes ISH Paper GmbH Ober-Schmitten and Spezialpapierfabrik Ober-Schmitten GmbH, has initiated preliminary insolvency proceedings.
Founded in 1828 in Nidda/Ober-Schmitten, Hesse, the specialty paper factory is now on the brink of closure. According to reports from the “Frankfurter Neue Presse” (FNP) and the law firm Brinkmann und Partner, two insolvency applications have been filed with the court in Friedberg, Hesse.
Unexpected turn of events
Just a year ago, the parchment paper specialist was sold by American conglomerate Glatfelter to the Turkish IS Holding for a symbolic value of one euro. As recently as spring, the company had announced plans for a new paper machine and investments of 500 million euros. New employees were even hired during this period.
However, the situation has drastically changed, with approximately 190 jobs now at risk. Some employees are reportedly still waiting for their August wages. The plant manager, Hagen Knodt, was caught off guard by the decision while on vacation in Greece. “This is a shock, it’s knocked me off my feet,” he told the FNP.
Insolvency proceedings and future prospects
Attorney Jan Markus Plattner has been appointed as the insolvency administrator. In a statement, Plattner said, “Together with my team, I will now assess the current situation of Spezialpapierfabrik Ober-Schmitten on-site and explore possibilities for restructuring the company. To restart paper production, we need to rebuild the raw material supply chain. We will also quickly initiate an international investor process.”
The insolvency proceedings ensure that employees’ wages and salaries are secured for three months. The company’s five apprentices are also expected to remain for the time being.
According to the company, SPO produces high-quality glassine paper (also known as parchment paper) from refined cellulose for the food and non-food sectors. They also manufacture electrotechnical papers, particularly fine capacitor papers, which are components in many electronic parts.
