A paper mill in Hainsberg in the German state of Saxony has once again entered insolvency proceedings. On 5 February 2026, the Dresden District Court appointed lawyer Susanne Berner from the law firm Dr Berner & Partner Rechtsanwälte as provisional insolvency administrator.
Over the coming weeks, she is expected to gain an overview of the financial situation at the long-established industrial company and examine possible options to stabilise operations.
The decision formally places the company in a new insolvency process, marking another setback for the regional paper industry. The Hainsberg plant has a long history and has experienced recurring financial difficulties over the years.
Finances under review
The provisional administrator has been tasked with analysing the company’s finances, debt situation and operations. The aim is to determine whether the business can continue under restructuring, be sold to a new owner or, in the worst case, be wound down.
The administrator is also responsible for securing ongoing operations during the initial phase and holding discussions with creditors, employees and potential investors. A key objective in such proceedings is to find a solution that preserves production and jobs where possible.
Industry under pressure
Germany’s paper industry has faced mounting pressure in recent years due to high energy costs, declining demand for certain paper products and intensifying competition. Several mills across the country have already been forced to scale back production or shut down.
The Hainsberg facility is located in the town of Freital near Dresden and is one of the older industrial sites in the region. It remains unclear how many employees will be affected by the current insolvency, but local authorities and trade unions are closely monitoring the situation.
It is also unclear whether investors will emerge to take over the business or whether restructuring within the current corporate structure is possible. The insolvency administrator is expected to present an initial assessment once the financial review has been completed.
Source: Dresden District Court
Fact check
Germany’s paper sector has been heavily affected by rising energy prices and weaker market demand in recent years, leading to multiple insolvencies and closures.
