Old-established German enterprise shuts down following 129 years of operations.
In a shocking development, the German traditional company Kabel Premium Pulp & Paper GmbH announced its closure, resulting in the loss of jobs for over 400 employees. The company, based in Hagen, has been in operation for nearly 130 years and was a renowned name in Europe's paper industry.
The closure, effective as of June 1, 2025, comes after a sustained period of financial difficulty, with the company undergoing insolvency proceedings earlier this year [2]. According to reports, the economic situation of the company was the primary reason for its decision to shut down [1]. The decreasing demand for paper products, coupled with failing orders, has put numerous companies in the industry in crisis.
The closure of Kabel Premium Pulp & Paper GmbH may lead to supply chain disruptions for certain types of paper, as regional customers and partners would need to find alternative sources. Furthermore, the exodus of companies from the industry could accelerate consolidation, with companies either developing new concepts to survive or disappearing forever.
For now, the focus is on supporting the affected employees, who are now faced with the challenge of finding new employment. Initially, potential investors had shown interest, but a deal never materialized, leading to the company's closure.
[1] Source: www.deutsche-wirtschafts Nachrichten.de (accessed May 31, 2025), [2] Source: www.handelsblatt.com (accessed May 31, 2025)
The closure of Kabel Premium Pulp & Paper GmbH could potentially lead to other manufacturing companies in the paper industry experiencing similar challenges, particularly in terms of finance and business operations. With the company's closure on June 1, 2025, some financial institutions may now divert their investments to more promising sectors, away from troubled industries like paper manufacturing.
