Packaging Solutions
Mondi has agreed to acquire the 250,000 tonne per annum Hinton Pulp mill in Alberta, Canada, from West Fraser Timber Co Ltd for a total consideration of $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 papermachine, anticipated to be operational from the second half of 2027. The acquisition of the mill, and investment in the papermachine, 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 will meet customer requirements for sustainable packaging solutions as paper is increasingly being used for packaging across the Americas.
Commenting on the acquisition, Andrew King, Mondi Group CEO, 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. The acquisition of Hinton is an excellent opportunity for us to secure locally produced kraft paper for our bags customers, helping to meet the current and anticipated future growth in demand for industrial and mailer bags in the Americas. 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.’
