Business News

Paloma Hoping for Breakthrough with Innovative Multi-Purpose Napkin

Sladki Vrh, 24 January (STA) - Paper tissue producer Paloma officially launched on Tuesday its new line of $revolutionary$ napkins, a EUR 1.3m investment which the company, which has been struggling with red figures, hopes to boost annual revenues by around EUR 7m.

The multi-purpose Paloma Professional Premium napkins are the work of acclaimed 93-year-old innovator Peter Florjančič, also known for photo slide frames and the perfume atomiser spray bottle.

Paloma chairman Darko Bračič told the press that a new machine would enable the company to produce 450,000 napkins in one shift and mark Paloma's transition from a mass-market producer with relatively small added value to a maker of niche products.

The added value is high and will make it possible for Paloma to market the product globally, Bračič said about the paper napkin that has the feel of textile and is intended for households as well as the hospitality industry.

While announcing that Paloma was again operating in the black after a EUR 4.5m loss in 2010 and a EUR 400,000 shortfall in 2011, Bračič said that new markets and buyers were expected to bring a 9% rise in revenues to almost EUR 93m this year.

This would mean a EUR 3.7m profit, with Bračič explaining the company was presently also profiting from favourable prices of raw materials and the restructuring measures introduced at end of last year.

Moreover, a loan reprogramming agreement has been reached with banks, which gives the management reason to expect positive figures at least in the coming two years.

This would make the company, which employs around 750 people, interesting for investment by the state as well as potential strategic investors.

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