About the company

History

  

The history of Kostenets - HHI AD started in 1902 with the foundation of a small factory for production of cardboard from the Belgian entrepreneur Tahoyer and Bulgarian entrepreneur Muleshkov. In 1903 the factory became a property of the Swiss entrepreneurs Jacques Vegeli and Jacques Bruner who founded a joint-stock company Maritsa. Notwithstanding the wars the company maintained its success up to 1947. The same year the factory was nationalized and renamed to Vasil Kolarov. New products and processes were acquired and the production increased nearly twice. The buildings, machinery and equipment were improved through reconstructions and modernizations.

In the 60s the company acquired a new production of creped paper. The first Bulgarian toilet paper, craft stickers, and etc. were produced in the factory of Kostenets. The 70s – 90s period was determined by the massive expansion of the company, including the installation of two Yankee machines for production of MG cellulose paper. In 1986, a full production capacity was reached, expressed in production of 38 000 tons paper and 12 000 tons wood pulp in total. The period after the 90s was difficult due to political changes and major disturbances in Bulgaria. During the period 1991 - 1994 the company assumed the status of joint-stock company named "Kostenets - paper and paper products" and due to  lowered productivity fell into financial distress.

In 1997 Kostenets - HHI AD has already been a company with 100% private equity. In operation remains paper machine Voith in a production department 1 with production of fluting and BP-71 in production department 2, redirecting 80% of its capacity for production of sanitary-hygienic papers.

In 2006 the Company ordered a new 3rd paper machine as well as a cogeneration plant to be installed in 2007, but it encountered managerial problems and ran into financial difficulties. During the period 2008 - 2010 the Mill operated with several long production stops caused by the lack of working capital and at the same time the investments were completed.

In the late 2010 a group of new owners supported by the creditors acquired the majority shareholding in the Company. The paper production was restarted in March-April 2011.