After the owner of MEL S.A. Macedonian Papermills, Kyriakos Oikonomou, was arrested on November 21, 2011, for tax evasion totaling 800,000 Euros, the company based in Thessaloniki will be acquired by the Kartonsan subsidiary of the Turkish Group Pak Holdings.
The historic company of the northern Greek city is one of the leading firms in its field, with a high estimated asset value. Its lack of funding and the Greek debt crisis have led the company to the acquisition solution.
The company has been in talks with the Turkish Group since May 2011. “By the end of January we hope that all procedures will be concluded” said MEL President Kyriakos Oikonomou, adding that this is the only solution for the company to be saved.
According to information, the company had planned on a thermal investment worth 4 million Euros to cut on its energy expenses, but the banks did not provide them with the necessary funds.
MEL S.A. was founded in 1964. In 1981 it passed to the Organism for Reconstruction of Businesses and in 1998 Kyriakos Oikonomou bought back the company.
“MEL produces 100.000 tons of paper, with 55% being exported in several European countries. 70% of the exports go to EU countries. Over the past years, we have invested 70 million Euros in our company. With a little boost it will be once again the leader in paper industry” pointed out Mr. Oikonomou.
The company produces package paper for food and its sales in the last years have reached a total of 50 million Euros. However, rising production costs have disabled the normal functions of the company.
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