Bio-PAPPEL new name for Mexico's Corporación Durango
In July 2010, Mexico City-based Corporación Durango, SAB de CV introduced its new corporate identity Ñ Bio-PAPPEL, SAB de CV. Its shares are listed on the Mexican Stock Exchange under the trading symbol PAPPEL.
Bio-PAPPEL is composed of four business units: Bio-PAPPEL Packaging (was Empresas TITAN); Bio-PAPPEL Printing (was Grupo PIPSA-MEX); Bio-PAPPEL Kraft (was Papeles Mexicanos); Bio-PAPPEL International (was McKinley Paper Company).
In its announcement, the company claimed to be the largest paper and paper products producer in Mexico and Latin America, producing over 2.0 million tonnes/year. It makes corrugated cardboard, newsprint, recycled chlorine-free bond paper and sustainable paper sacks. It uses only recycled paper from the "urban forest". Following 10 years of the investment of over 4 billion pesos in sustainability projects, it has become the largest paper recycling entity in Mexico and Latin America and the region's leading producer of 100% bio-degradable, recyclable and recycled paper and paper products.
By recycling process water it saves 10.5 million cubic meters of water; by co-generating energy from process steam it saves 4.3 million kW/h. The company says that "These steps have allowed us to become the leader in carbon emission reduction within the paper industry by capturing nine times more carbon than the amount released by our processes."
In July 2009, the company completed a financial restructuring with its creditors. In July 2010, Fitch Ratings upgraded its foreign and local currency issuer default ratings (IDRs) to 'B' from 'CCC', has upgraded the company's notes due in 2016 to 'B/RR4' from 'CCC/RR4' and assigned a stable rating outlook to Bio-PAPPEL. Fitch says its rating actions are a result of an improvement in Bio-PAPPEL's liquidity due to the favorable operating environment during the 12 months ended June 30, 2010.