The acquistion by Mondi is to secure the future of the Hinton pulp mill while supporting Mondi's growth in North America in the kraft paper segment.
Mondi has completed the acquisition of Hinton pulp mill from West Fraser Timber for a total consideration of US$5m. The companies had announced the deal back in July 2023. The transcation was finalised following completion of Canadian regulatory reviews and satisfaction of customary closing conditions, West Fraser said.
Hinton pulp mill produces unbleached kraft pulp (UKP) and is geared for a capacity of 250,000 tpy. West Fraser will continue to supply the mill with fibre through a long-term supply agreement with Mondi.
"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 grow," Mondi announced.
According to the last year announcement, Mondi would invest €400m in the expansion of the site, primarily to install a new 200,000 tpy kraft paper machine which could become operational in the second half of 2027.