Grimma, Saxony, Germany 10 July 2013 -- Severe damage caused by June flooding forced German Papierfabrik Golzern to close for good. The paper service company is looking into possibility of starting afresh at a different site.

German Papierfabrik Golzern has ceased all operations at the production facility in Grimma, Saxony, and will give up the site for good due to major damage suffered by the devastating floods in June. Initial plans to keep parts of Papierfabrik Golzern running have been abandoned, according to the company's managing director.

After assessing the extent of the damage and taking into consideration future flood risks, the company has decided to abandon production at the current site in Grimma, it is learnt. The management is now looking into the possibility of relocating operations to new premises and starting afresh under a new name

Converting and paper service company Papierfabrik Golzern was selling some 30,000 tpy of graphic paper in sheets and reels, as well as packaging and crepe paper to the market, generating sales of around €8m. In 2013, the company planned to increase sales to €9.2m.