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The Department of Eure and Double A Reach an Agreement for the Acquisition of the Paper Pulp Factory in Alizay.

Hong Kong, Jan 24, 2014 - (ACN Newswire) - Premium copy paper maker Double A has concluded an agreement with the Department of Eure to purchase the pulp factory including the bio-mass power plant in Alizay adjacent to its Alizay paper mill thereby combining its integrated pulp and paper mill operating expertise with bio-mass techniques.

This initiative clearly demonstrates the advanced recovery process on the Alizay site, emblematic of re-industrialisation in France. After restarting the operation of paper machinery in June 2013, Double A Alizay's objective is to boost pulp production during the first half of 2015. This investment also reinforces Double A's commitment to the continued re-industrialisation of the area. The pulp mill bolsters Double A's competitiveness in Europe and advances Alizay as a key production site for Double A's market expansion plans into Africa, the Middle East and the Americas.

"We have agreed on the selling price of the land, the buildings and the assets necessary to revive the production site. All that remains is for us to prepare and sign the relevant deeds as soon as possible, which is in the interests of both parties as it will revive paper pulp production at the site," stated Jean Louis Destans, Chairman of the General Council of the region of Eure.

At this stage, Double A should then file an application for authorisation of exploitation which will begin a public review. Through State services, the Department of Eure is committed to collaborating with the Double A Alizay teams throughout these administrative procedures, with the objective of effectively reviving the production of pulp during the first half of 2015.

This step follows up on the exemplary industrial operations launched on 23 January 2013 between the Department of Eure, employees and Double A. After acquiring the entire site in a form of "micro-temporary nationalization" in a bid to save the industrial facilities, the Department of Eure resold it the same day to the specific department linked to the production of paper and energy supply at Double A.

The investment in the pulp mill also encompasses the bio-mass power plant. Bio-mass power would generate green energy, utilising wood and biomass from Alizay's regional sources and residuals from the Alizay pulp producing process using wood from Double A's "Paper Tree from KHAN-NA" in Thailand. This green energy is critical to the success of this investment.

According to Jean Louis Destans, "The commitments made by Double A during the sale of assets related to the paper machine on 23 January 2013 were concerning the time expected to restart the machine or the number of jobs to be created. Double A's decision to further invest in the Alizay pulp production site today confirms their enduring commitment on our territory, and their willingness to make this the production site for the European market. This proves that political goodwill can pay off in industrial progress. Therefore, we believe that we have made the right decision last year with the employees." This worthwhile operation will ultimately be seen in financial terms as neutral to the General Council but largely positive in terms of the economy and employment.

"The year 2013 marked a successful return of the Alizay Paper Mill, which resumed full production in June and was manufacturing premium quality Double A paper by August. The mill began exporting paper in September to the UAE and Eastern Europe. This success was due to the combined efforts of the professional teams at Alizay and Thailand, forging a truly unique partnership." said Thirawit Leetavorn, Senior Executive Vice President of Double A.

Background History

-- On 23 January 2013, the Department of Eure bought the entire industrial Alizay site for 22.2 million euros

-- On the same day, the Department resold the land and assets for the recommencement of production of paper and energy supply to Double A for 18 million euros.

-- The Department still owns 50 hectares of land and the remaining assets, including the pulp and paper factory.

-- 10 June 2013, Double A Alizay produced its first paper roll by importing raw material from Thailand and Brazil

-- 30 November 2013, Double A Alizay recruited 150 employees

-- 1 December 2013, the General Council announces the sale of the pulp factory to Double A Alizay

-- On the same day, Double A Alizay announced its goal to restart the factory during the first half of 2015.

Source: Double A

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Publication:ACN Newswire
Date:Jan 24, 2014
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