CTS Invest called off its investments into Pitkyaranta pulpmill

CTS Invest group cancelled its intention to invest €50 million in the development of Pitkyaranta pulpmill, says the Forest portal of Karelia.

Previously, the company signed the agreement on repurchase of debt with the enterprise’s principal creditor, VTB bank. “When it came time to pay, it turned out that they do not want or cannot pay,” the head of Karelia Alexander Hudilainen commented on the situation.

However, according to the governor, two financial companies have already shown its interest in the mill. Regional authorities are now checking their solvency, so that the situation does not occur again. In the coming weeks, the government of Karelia intends to meet new potential investors of the pulpmill.

According to Alexander Hudilainen, the Karelian enterprise produces a demanded product: in 2013, the price for this pulp grade increased by 27%, he said.