With the acquisition Mayr-Melnhof will expand its virgin fibre board business and enter flexible packaging and woodfree uncoated paper operations.
Austria's Mayr-Melnhof and International Paper (IP) have entered into a purchase and sale agreement on IP's pulp, paper and board mill in Kwidzyn, Poland. Mayr-Melnhof puts the purchase price at €670m on a cash and debt free basis. Another €33m will be added in "usufruct and operating lease liabilities," Mayr-Melnhof said.
According to IP, the Kwidzyn mill has a staff of 2,300 and runs four machines with a capacity to produce 740,000 tpy of folding boxboard, uncoated woodfree paper, specialty kraft papers, and market pulp. The company had sales of €510m in 2020.
Folding boxboard is produced on one board machine with a capacity of 260,000 tpy. The GC 1 and GC 2 board grades are sold under the Arktika and Alaska brands. The acquistion of Kwidzyn mill will allow Mayr-Melnhof to expand its virgin fibre board activities while strengthening its raw material position. Pulp production capacity at Kwidzyn amounts to 400,000 tpy.
IP Kwidzyn also operates a 75,000 tpy MF kraft paper machine and two fine paper machines with a total capacity of 410,000 tpy of woodfree uncoated paper.
Last December, Mayr-Melnhof already announced the acquisition of cartonboard producer Kotkamills for €425m.
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