Mondi has agreed to acquire Hinton Pulp mill in Alberta, Canada from West Fraser Timber Company Limited for USD 5 million. The company intends to invest a further EUR 400 million, primarily in a new 200,000 tonne per annum kraft paper machine at the mill. The acquisition is expected to close towards the end of 2023.
Jul 10, 2023
Mondi plc (Mondi) has agreed to acquire the Hinton Pulp mill, with a production capacity of 250,000 tonne per annum, in Alberta, Canada, from West Fraser Timber Company Limited(West Fraser) for a total consideration of USD 5 million. As part of the transaction, Mondi will enter into a long-term partnership with West Fraser to access local, high-quality fibre from a well-established wood basket. The intention, subject to pre-engineering and permitting, is to invest EUR 400 million in the expansion of Hinton, primarily for a new 200,000 tonne per annum kraft paper machine, anticipated to be operational from the second half of 2027. The acquisition of the mill, and investment in the paper machine, will fully integrate operations in the Americas and enable Mondi to secure the long-term supply of high quality, cost competitive kraft paper into its network of 10 paper bags plants in the region, better positioning Mondi to support the growing market demand for industrial and mailer bags.
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The kraft paper produced at Hinton will have the highest quality and strength parameters, which, in combination with Mondi’s expertise, will meet customer requirements for sustainable packaging solutions as paper is increasingly being used for packaging across the Americas. Customers will thus benefit from a fully integrated and much shorter supply chain reducing the carbon footprint of Mondi’s packaging products in the region. Mr. Andrew King, Mondi Group CEO commented on the acquisition, “The acquisition of Hinton is an excellent opportunity for us to secure locally produced kraft paper for our bags customers, helping to meet the current and anticipated future growth in demand for industrial and mailer bags in the Americas. This acquisition will also enable us to further strengthen our position as the global market leader in the production of kraft paper and paper bags.” The acquisition is expected to close towards the end of 2023.
