The European Commission is not well-disposed to support Lecta, who is seeking funds in order to be able to realign its Condat mill. A first, non-binding decision has been made, according to Euwid.
French papermaker Lecta is considering a machine rebuild at its French Condat mill.
Lecta had applied for state support in the form of energy contribution subsidies, which could add up to €35m, for a period of three years, arguing that it relied on the assistance because of the high energy costs in the country.
According to Euwid, it is now unclear if or when the rebuilding project at the mill will be implemented. PM 8 is currently producing woodfree coated paper, but will after the conversion produce label paper.