HEINZEL GROUP signs agreement for acquisition of Steyrermühl paper mill from UPM

Upper Austrian site to be developed into a hub for sustainable packaging papers and renewable energy from 2024

Laakirchen, June 21st, 2022. HEINZEL GROUP announces today that it has entered into a share purchase agreement with UPM to acquire UPM Kymmene Austria GmbH and its subsidiaries in Steyrermühl, Upper Austria. Together with Heinzel's Laakirchen Papier AG, which is located less than three kilometers from the Steyrermühl paper mill, the site will become a hub for sustainable packaging papers and renewable energy with closing of the transaction on January 1st, 2024. The deal is contingent on approval from relevant competition authorities.
 
At the site UPM today operates one paper machine for newsprint production, a sawmill, and a residue incineration plant co-owned with Heinzel's Laakirchen Papier. UPM plans to continue operations as-is until the end of 2023 when it will cease the production of graphic papers in Steyrermühl.

At the site UPM today operates one paper machine for newsprint production, a sawmill, and a residue incineration plant co-owned with Heinzel's Laakirchen Papier. UPM plans to continue operations as-is until the end of 2023 when it will cease the production of graphic papers in Steyrermühl.
 
HEINZEL GROUP will use the time between signing and closing of the transaction to evaluate and, if feasible, plan and prepare a conversion of Steyrermühl's machines to the production of packaging papers. This evaluation will not only comprise the paper machine that is currently running, but also a second paper machine at the site which was idled by UPM in 2017.
 
HEINZEL GROUP today produces a range of papers for flexible packing (so-called kraft papers) and rigid packaging (so-called containerboard) at its sites in Pöls, Laakirchen and Raubling. "In Steyrermühl, we will be looking at complementing our existing products. We see great potential in the fast-growing markets for sustainable packaging papers", says HEINZEL GROUP CEO Sebastian Heinzel.
 
Additionally, HEINZEL GROUP will consider developing Steyrermühl into a supply center for heat and energy for both the Laakirchen paper mill and the wider Laakirchen community. "We plan to develop Steyrermühl into a supplier of sustainable and renewable energy”, says HEINZEL GROUP COO Kurt Maier. "The recent developments in Europe have shown us all how important it is to reduce our dependency of fossil fuels and gas."
 
The integration of Steyrermühl into HEINZEL GROUP will also create new opportunities for the mill’s employees. “At our neighboring Laakirchen mill we have successfully shown that there is a future after the end of graphic paper production”, says Thomas Welt, CEO of Laakirchen Papier AG. “And this future is based on sustainable packaging papers and green energy.”

About UPM Steyrermühl
UPM Steyrermühl is located in Austria, some 60 kilometres from Linz and 70 kilometres from Salzburg. The Steyrermühl paper mill was founded in 1868. Today 400 people are working at the site - distributed among paper mill, sawmill, and affiliated companies.

About HEINZEL GROUP
At four sites in Europe, HEINZEL GROUP produces market pulp, packaging paper and magazine paper and trades in in cellulose, paper, recycled fiber, and packaging solutions. With its production companies Zellstoff Pöls, Laakirchen Papier, Raubling Papier and Estonian Cell, HEINZEL GROUP is one of the most important cellulose and paper producers in Central and Eastern Europe. The three trading companies of HEINZEL GROUP – heinzelsales, Europapier and Bunzl&Biach – respond flexibly to diverse international customer requirements. The group’s success is based on its entrepreneurial spirit and a commitment to long-standing partnerships. Sustainability is a focal point of all activities at HEINZEL GROUP.
 
The press release of UPM on this topic can be found on their company website under this link.
 
Contact:
Susanne Johannessen
Email: susanne.johannessen@heinzelsales.com
Tel: +43 664 627 7121
 
Heinzel Holding GmbH
Wagramer Straße 28–30
1220 Vienna
Austria
www.heinzel.com

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