Packaging firm Mondi has agreed to acquire Hinton Pulp mill in Alberta, Canada, from West Fraser Timber for a total consideration of $5 million (€4.5 million).
The intention, subject to pre-engineering and permitting, is to invest €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.
Mondi said it hopes to secure the long-term supply of kraft paper into its network of 10 paper bags plants in the region, which it believes will help the company meet the growing demand for industrial and mailer bags.
Reducing Carbon Footprint
The packaging company said customers will benefit from a fully integrated and 'much shorter' supply chain, reducing the carbon footprint of Mondi’s packaging products in the region.
Kraft paper produced at the facility will meet customer requirements for sustainable packaging solutions as paper is increasingly being used for packaging across the Americas.
Mondi Group CEO, Andrew King said, "Strategically, we are focused on investing to support the growing market demand for our sustainable packaging products, while delivering attractive mid-teen returns through cycle.[...]
"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."