Modaes, the Spanish textile and fashion magazine on 29 April reported that after a month and a half of negotiations Praedium acquired 90 per cent of Montefibre Hispania, Montefibre’s plant in Miranda de Ebro, Spain. The Italian group Montefibre retains the remaining 10 per cent until bankruptcy proceedings for the Spanish plant are finalised.

The plant, which employed 250 people, is designed to produce 95 ktons of acrylic but has been closed for a year. Praedium, which already owns Nylstar and the Spanish fashion accessory brand Lupo, intends to restart the plant in September.

Meetings with creditors are scheduled for July in an attempt to reduce the plant’s debts by half. Efforts are being made to re-establish contact with previous clients. And a previously existing labour agreement with plant workers has been extended for six months.

Key maintenance problems the new owners must address before the plant can restart are water purification and power generation, neither of which is working at present. In previous news reports Praedium had stated that it would not have access to the energy subsidies provided to the Spanish plant before it closed in 2013.

Courtesy- PCI Fibres