Hinton Pulp mill acquisition supports growth in Mondi’s Americas paper bags business

Mondi plc (Mondi), a global leader in the production of sustainable packaging and paper, has agreed to acquire the 250,000 tonne per annum Hinton Pulp mill in Alberta, Canada, from West Fraser Timber Co. Ltd (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 €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.

Customers will benefit from a fully integrated and much shorter supply chain reducing the carbon footprint of Mondi’s packaging products in the region. 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.
more at: https://www.mondigroup.com/en/newsroom/press-release/2023/hinton-pulp-mill-acquisition-supports-growth-in-mondi-s-americas-paper-bags-business/

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