PULP MILL HOLDING BACKS OUT OF MATROZ DEAL Austria's Pulp Mill Holding has withdrawn its bid to take over Matroz, one of Serbia's largest pulp and paper man ufacturers.
The company pulled out of negotiations with the Serbian privatization agency because of legal obstacles.
Pulp Mill Holding hoped to focus on producing market pulp at the plant if its bid was successful. Matroz's mill in Sremska Mitrovica remains idle, but has the capacity to produce 80,000 tonnes/yr of bleached hardwood kraft pulp, 40,000 tonnes/yr of newsprint and 25,000 tonnes/ yr of woodfree paper.
The company is now likely to be declared bankrupt despite the fact that it is a state-owned firm.