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Mondi acquires Canadian pulp mill for US$5M to integrate operations in the Americas

#Mondi acquires Canadian pulp mill for US$5M to integrate operations in the Americas

06 Feb 2024 — Mondi has acquired the Hinton Pulp mill in Alberta, Canada, from West Fraser Timber for US$5 million.

“The acquisition of the mill and planned investment in a paper machine will fully integrate our operations in the Americas and enable us to secure the long-term supply of high quality, cost competitive kraft paper for our network of ten paper bags plants in the region, better positioning us to support the current and anticipated future growth in demand for industrial and mailer bags in the Americas,” Roman Senecky, COO of Kraft Paper at Mondi, tells Packaging Insights.

“The acquisition will further strengthen our position as the global market leader in the production of kraft paper and paper bags.”

The agreement between the two companies was reached last July, with Mondi’s intention set to invest in the expansion of the Hinton mill, primarily for a new kraft paper machine, anticipated to be operational from the second half of 2027.

Accessing local fiber
Hinton Pulp mill produces unbleached kraft pulp. The mill can produce around 250,000 tons of pulp annually and will provide the Mondi with access to local, high-quality fiber from a well-established wood basket as part of a long-term partnership with West Fraser.

Mondi intends to invest in the mill to improve productivity and sustainability performance and, subject to pre-engineering and permitting, invest in expanding the facility primarily with a new kraft paper machine, which will integrate its paper bag operations in the Americas to support future growth.

Commenting on the acquisition, Andrew King, Mondi Group CEO, shares: “We are delighted to welcome our new colleagues from Hinton Pulp mill to Mondi and look forward to working together to secure the mill’s future and support Mondi’s growth in North America with our portfolio of sustainable packaging.”

By Radhika Sikaria

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