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SRS 3.7¢

Paper

  1. NZ2AU

    35 Posts.

    It would seem there's simply not enough money to be made in the distribution of tonnes of paper to justify in any sense the huge infrastructure the company operates in Europe. Therefore Europe needs to be dramatically restructured. The funds realised from the sale of Canada will allow the management some breathing space to do the things they need to do in Europe. There is money to be made and growth prospects in the companies emerging businesses, and there is money to be made in niche & specialty papers. It's the commodity grades which are draining the lifeblood of the business. Making whatever € per tonne on commodity papers when that € number does not cover the costs of importing, warehousing & distributing that paper is financial suicide. Europe needs major surgery and these funds will somewhat facilitate that. Whether it's enough remains to be seen. There is a profitable business in Paperlinx. The onion just needs to be peeled & there will be many tears to come as this is done.

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