Mondi, a global leader in packaging and paper, has officially completed the acquisition of the Hinton pulp mill from West Fraser Timber, marking a significant step to ensure the mill's future and bolster Mondi's growth in the kraft paper segment in North America.
Initially announced in July 2023, the deal saw Mondi taking over the mill for a total consideration of US$5 million. The transaction reached its conclusion after successfully passing Canadian regulatory reviews and fulfilling all necessary closing conditions, as confirmed by West Fraser.
The Hinton mill, known for producing unbleached kraft pulp (UKP), boasts a capacity of 250,000 tons per year. Under a long-term agreement, West Fraser will continue to supply the mill with the necessary fibre, ensuring a stable and reliable operation for Mondi.
New kraft paper machine.
Mondi intends to invest significantly in the mill to enhance productivity and sustainability. Furthermore, pending the outcomes of pre-engineering studies and permitting processes, Mondi plans to expand the facility. A vital feature of this expansion is the introduction of a new kraft paper machine. This strategic move integrates Mondi's paper bag operations within the Americas, laying a foundation for future regional growth.
Last year's announcement highlighted Mondi's ambitious plan to invest €400 million in the site's expansion. The primary focus of this investment is installing a new kraft paper machine with a production capacity of 200,000 tons per year to become operational in the second half of 2027. This development underscores Mondi's commitment to expanding its footprint in the North American market while enhancing its sustainability and productivity capabilities.
Source: Mondi Corporation