(News from RISI) – St. Veit an der Glan in Carinthia, southern Austria, will not be the home of a new tissue converting facility.
Italy’s Roto-cart, which was planning to spend up to €70m on the project, cancelled its plan, due to, amongst others, the “tight financial situation of the state of Carinthia.”
Roto-cart announced one and a half years ago that it was planning to build a tissue converting facility in the St. Veit industrial area. The project provided for the creation of around 120 jobs.
However, now Roto-cart said that the Hypo crisis – Carinthia faces probable bankruptcy after Austria’s central government refused to vouch for debts left by the Hypo Alpe Adria scandal – had dampened the spirits of the banks that were to finance the project.
Moreover, the Italian company cited changes in the allocation of EU subsidies and difficulties in the time management of the project’s financing as reasons for its decision to cancel its investment plans.
Roto-cart, based in Treviso, northern Italy, employs more than 100 people at two converting sites in Italy.
