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Paper Maker Paloma Inaugurates New EUR 138m Facilities

Paloma has unveiled new facilities worth EUR 138 million, solidifying its position as one of Europe's most modern paper factories

Slovenian paper producer Paloma has unveiled new facilities worth EUR 138 million, marking the completion of a seven-year investment cycle under the ownership of Slovak group SHP. The company also announced the launch of a new EUR 11 million production line for box tissues next year.

The new ten-storey automated warehouse, which required the demolition of old buildings and construction of new ones, features 24,760 pallet spots. This development enables efficient transportation, full traceability of pallets, and lower operating costs for storage and internal logistics.

Milan Filo, president of the Czech holding company Eco Investment, which owns the SHP group, highlighted the investment’s significance for maintaining the long-standing tradition of paper production at Paloma’s Sladki Vrh location. 

The investments, part of the Motion project, include two new production lines, a facility for rapid palletisation, and an automated high-bay warehouse for finished products

The inauguration ceremony was attended by Prime Minister Robert Golob, Economy Minister Matjaž Han, and Finance Minister Klemen Boštjančič. Prime Minister Golob praised the investment as a testament to the benefits of investing in digital transformation and green initiatives. “Paloma is proof that good things happen when investors commit despite challenges like the energy crisis and the pandemic,” he said, adding that the government would continue to support such initiatives.

Economy Minister Han noted that the state had contributed EUR 8 million to the investment, stabilising the company and ensuring it had an excellent owner. SHP chairman Richard Žigmund announced further investments, including the new box tissue production line set to begin in 2025 and plans to increase energy efficiency in 2026 and 2027.

Paloma’s current production capacity stands at 80,000 tonnes annually. Despite not fully utilising the facilities last year, the company finished 2023 with EUR 130 million in revenue, a 10% increase from the previous year, and EUR 10 million in EBITDA. 

This investment positions Paloma as one of Europe’s most modern factories with high added value, surpassing the Slovenian average, and underscores the company’s commitment to sustainable growth and innovation.

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