Austria's family-owned Heinzel group will become a strategic investor and hold a 25 per cent stake in Paracel, Paraguay's first pulp mill.
Heinzel Holding, the holding company of Austria's pulp and paper manufacturer Heinzel group, will become the strategic partner and the second largest shareholder in Paracel, a greenfield pulp mill, renewable energy and forestry plantation project in Paraguay. Heinzel has already entered into an investment agreement to become the strategic equity investor in Paracel, the two companies jointly announced. "Paracel has now received equity commitments from a group of Paraguayan and European business families, with Heinzel's investment completing the needed strategic equity for the project," they stated.
Paracel plans to build a 1.8 milion tpy bleached eucalyptus kraft (BEK) pulp mill near the city of Concepcion in central Paraguay and is planting more than 180 ha of eucalyptus plant. The project was founded by Paraguay's family-owned Zapag group and developed with the help of Sweden's forestry investment and project development company Girindus Investments. Zapag group is the largest investor in Paracel, with Heinzel and Girindus coming second and third.
According to Girindus' management, the mill is scheduled for start-up at the end of 2024 start of beginning 2025. Paracel is now waiting for the financial closure of the project, the company said.