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Stora Enso sells its Sachsen mill in Germany to Model Group

Stora Enso agreed to part with its Sachsen mill
Stora Enso agreed to part with its Sachsen mill
27 May 2021 − 

About 310,000 tpy of newsprint capacity will be converted to recycled containerboard.

Stora Enso announced that it would sell its Sachsen mill in Eilenburg, Germany, to Swiss Model Group for €35m. Model Group will convert the mill, which is producing various newsprint grades and deinked pulp, to the production of recycled containerboard. All 230 employees will move to the new owner, Stora Enso says.

After the transaction is closed, Model Group will own and operate the Sachsen mill, while Stora Enso will continue to sell and distribute the mill's paper under a contract manufacturing agreement for a period of 18 months. Thereafter, Model Group will rebuild the mill. Stora says it will deliver paper from the Sachsen mill to its customers at least until the end of 2022.

Stora Enso Sachsen mill is producing a number of newsprint paper grades based on recycled paper. With its total output capacity of about 310,000 tpy, it is producing approximately 35,000 tpy of newsprint, 210,000 tpy of paper for commercial flyers and supplements, 35,000 tpy of directory paper and 24,000 tpy of deinked pulp.

Only recently, Stora Enso announced that it would permanently close its Kvarnsveden and Veitsiluoto pulp and paper mills in the third quarter of this year, reducing paper capacity by 565,000 tpy of SC paper and improved newsprint, 260,000 tpy of coated magazine paper and 530,000 tpy of woodfree uncoated paper.

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Read more on the acquisition of Stora Enso's Sachsen mill in our next edition of EUWID Pulp and Paper which will be published 2 June 2021.

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