New Aylesford owner in long-term pledge

The pledge comes in the wake of the sale of Aylesford Newsprint by its joint owners SCA Forest Products and Mondi Group to US-based investment holding company, The Martland Holdings, LLC yesterday, October 2 2012 (see letsrecycle.com story).

“The transaction opens up new opportunities to reinforce the Companys position as a UK newsprint producer.”

Ian Broxup, acting MD, Aylesford Newsprint

Mark Lunabba, the former managing director of Aylesford Newsprint, who joined from SCA, has now left the business and Ian Broxup, finance director has been appointed acting managing director.

Mr Broxup said: The transaction opens up new opportunities to reinforce the Companys position as a UK newsprint producer. We are excited about building up the new relationship with Martland Holdings.

The Martland Holdings describes itself as a private US-based investment holding company engaged in acquiring non-core divisions of large corporations and private companies worldwide.

Martland

In a statement, Landry Kouakou, executive director of The Martland Holdings commented on the fact that Aylesford now had no debt and that the equity firm intended to be involved in the long term.

He said: Aylesford’s high-quality asset base, its unique industrial know-how combined with a strong balance sheet with no financial debt and an improved operating structure will represent key assets for the future.”

Mr Kouakou added: We are long-term investors with the commitment to build lifetime relationships with the Companys customers in Europe and overseas, enhance operational excellence while remaining nimble and flexible in serving our clients. We look forward to working with the management team and Aylesford’s employees.”

Aylesford Newsprint was formed in 1993 as a Joint Venture between SCA Forest Products and Mondi Group.

The company operates two paper machines, PM13 and PM14, and produces around 400,000 tonnes of newsprint per annum from 100 per cent recovered paper.

Renaissance

To make the newsprint, which is marketed under the Renaissance brand, Aylesford consumes about 500,000 tonnes of newspapers from local authority, paper recyclersand waste management companies across the UK.

Newsprint has been produced at the Aylesford Mill since 1922 and 100% recycled newsprint has been continuously manufactured at the plant from 1984.

Key competitors for Aylesford Newsprint are UPM with its Shotton mill in North Wales and German-owned Palm Paper which has the newest UK newsprint mill situated in King’s Lynn. A further competitor is the Stora Enso mill in Belgium.