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HomeNewsPackagingMondi To Acquire Hinton Pulp Mill In Canada For $5m

Mondi To Acquire Hinton Pulp Mill In Canada For $5m

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Mondi To Acquire Hinton Pulp Mill In Canada For $5m

 

Packaging company Mondi has reached an agreement to acquire the Hinton Pulp mill located in Alberta, Canada, from West Fraser Timber. The deal is valued at $5 million (€4.5 million).

As part of the acquisition, the company plans to establish a long-term partnership with West Fraser, granting access to local fiber from a well-established wood basket.

In addition to the acquisition, it intends to make a significant investment of €400 million in expanding the Hinton facility. The primary focus of this expansion is to install a new kraft paper machine with a capacity of 200,000 tonnes per annum. The new machine is expected to become operational in the second half of 2027, subject to pre-engineering and permitting processes.

The acquisition of the Hinton Pulp mill and the subsequent investment in the new paper machine will enable the company to achieve full integration of its operations in the Americas. By establishing this fully integrated setup, the company aims to ensure a reliable and long-term supply of kraft paper for its network of 10 paper bag plants in the region. This strategic move is driven by the company’s vision to meet the increasing demand for industrial and mailer bags.

One significant advantage of this integration is the creation of a much shorter supply chain, leading to reduced carbon emissions associated with packaging products in the region.

As a result, the company anticipates that customers will benefit from a more sustainable and environmentally friendly packaging solution. By streamlining the supply chain and enhancing sustainability, it aims to further solidify its position as a responsible and eco-conscious packaging provider in the Americas.

The production of kraft paper at the acquired facility aligns with the increasing demand for sustainable packaging solutions in the Americas. As the paper continues to be favored for various packaging applications in the region, the new capacity from the Hinton Pulp mill will enable Mondi to cater to customer needs effectively.

Andrew King, the CEO, emphasized the company’s strategic focus on investing in sustainable packaging products to meet the growing market demand. Additionally, Mondi aims to achieve attractive mid-teen returns throughout the economic cycle.

Furthermore, the acquisition of the Hinton Pulp mill will play a key role in reinforcing Mondi’s position as the global market leader in kraft paper and paper bags production. By leveraging the expanded production capabilities, the company is poised to serve its customers better and maintain its leadership position in the industry.

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