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Hagen after bankruptcies: New life for the old paper factory!
In October 2025, the traditional paper factory in Hagen was sold. VGP is transforming the site into a modern business park.
Hagen after bankruptcies: New life for the old paper factory!
In Hagen, North Rhine-Westphalia, the traditional paper manufacturer Kabel Premium Pulp & Paper is now history. After around 130 years at the site, production stopped on July 1, 2025, and insolvency proceedings were initiated in spring 2025. All efforts to find a buyer for the factory were unsuccessful. As wa.de reports, the closure particularly affected the local economy, as many jobs were lost in the region.
But after every shadow there is also light: VGP, a pan-European developer and owner of logistics and semi-industrial real estate, has acquired the factory site. The sale was completed by the insolvency administrator on October 9, 2025, and VGP plans to gradually convert the former factory site into a modern commercial and industrial park. This transformation is expected to bring many new jobs and revitalize the local economic landscape.
The plans for the future
The site of the former paper mill covers around 280,000 square meters and offers excellent conditions for the planned developments. The location is ideal, just 20 minutes from the center of Dortmund and well connected to the regional industrial and logistics network. Mayor Erik Schulz was positive about VGP's takeover of the site and sees great potential in the creation of new jobs, as the location is in the middle of Hagen's established industrial area.
VGP's vision is to attract companies from the manufacturing, light industrial and logistics sectors. “The transformation of the site into a modern business park will create a new future for this region,” said Jan Van Geet, CEO of VGP. The company also intends to aim for at least DGNB Gold certification for the properties to be developed, which recognizes sustainable buildings. The requirements of the EU taxonomy are taken into account, with a particular focus on reducing CO₂ emissions during the construction phase.
Challenges in the industry
But there are challenges not only in Hagen: As an analysis by the Düsseldorf restructuring consultancy Falkensteg shows, the chances of restructuring for insolvent companies are particularly low, especially in the logistics industry. Only around 16.7 percent of insolvent companies can be saved. This is in stark contrast to other industries, where the rescue rate is around 33.7 percent. However, the decline in the number of logistics bankruptcies has become noticeable for the first half of 2025, reflecting a recovery in demand.
With this new development in Hagen, the location will not only be revitalized by VGP, but could also be a positive signal for other companies in the region. The close cooperation between VGP and the city of Hagen underlines the will to strengthen economic structures and create future-proof conditions. It will be interesting to see how this process will develop and which companies will settle at the location.