Heinzel Group has entered into a share purchase agreement with UPM for it to acquire UPM Kymmene Austria and its subsidiaries.
This will mean that Heinzel will purchase UPM’s Steyrermühl paper mill, which is located less than 3km from its Laakirchen Papier facility, which was also converted from newsprint.
Currently, UPM operates a newsprint machine, sawmill and a residual incineration plant co-owned with Heinzel. From the end of 2023, UPM will cease newsprint production and the transaction with Heinzel will close on 1 January 2024.
Up until that point, Heinzel will instigate a feasibility study into converting the mill into the production of packaging papers. This will comprise of converting the existing machine, but also potentially a second machine that had been idled since 2017.
Heinzel currently produces kraft paper and containerboard and will investigate production of these in Austria.
Its chief executive Sebastian Heinzel said: “In Steyrermühl, we will be looking at complementing our existing products. We see great potential in the fast-growing markets for sustainable packaging papers.”