Mondi completes US$5M acquisition of Hinton Pulp mill in Alberta

CANADA – The British paper and packaging conglomerate Mondi has finalized the acquisition of the Hinton Pulp mill in Alberta, Canada, from West Fraser Timber, a diversified wood products corporation.

This transaction culminates after successful navigation through Canadian regulatory scrutiny and the completion of standard closing stipulations.

The Hinton Pulp mill specializes in producing unbleached kraft pulp, boasting a current annual production capacity of approximately 250,000 tonnes.

Sean McLaren, President, and CEO of West Fraser expressed gratitude, stating, “We extend our appreciation to our dedicated workforce, the Hinton community, and the Government of Alberta for their collective efforts in facilitating the closure of this transaction. The future outlook for the Hinton Pulp mill is optimistic.”

Through this strategic acquisition, Mondi aims to fortify its existing sustainable packaging capabilities and secure a local supply of premium fiber from diverse wood sourcing regions, fostered by a long-term supply agreement with West Fraser.

Mondi has outlined significant investment plans to augment the mill’s current productivity and sustainability metrics, contingent upon pre-engineering assessments and permitting procedures.

Upon the initial announcement of this acquisition in July 2023, Mondi disclosed plans for a substantial investment of €400 million (US$429m) at the Hinton Pulp mill, primarily earmarked for the installation of a new kraft paper machine, envisaged to yield an annual capacity of 200,000 tonnes.

The commissioning of this state-of-the-art machine, slated for the latter half of 2027, represents a pivotal component of Mondi’s strategic blueprint to consolidate its paper bag operations across the Americas.

The seamless integration facilitated by this acquisition, coupled with subsequent investment initiatives, will empower Mondi to ensure a consistent supply of cost-optimized kraft paper to its expansive network of ten paper bag manufacturing facilities across the region.

This strategic maneuver is poised to position Mondi favorably to cater to the burgeoning demand for industrial and mailer bags.

Andrew King, CEO of Mondi, expressed enthusiasm, stating, “We extend a warm welcome to our new colleagues from the Hinton Pulp mill into the Mondi family and anticipate collaborating closely to safeguard the mill’s future, while fortifying Mondi’s footprint in North America through our array of sustainable packaging solutions.”

In parallel developments, Mondi recently announced a €20 million (US$21.46m) investment to curtail greenhouse gas emissions, enhance energy efficiency, and bolster operational safety at its Neusiedler mill.

This investment encompasses an upgrade of the pulp mill’s recovery boiler, pulp dryer, steam accumulator, and steam turbine.

These initiatives align closely with Mondi’s ambitious MAP2030 sustainability commitments, projected to yield a reduction of greenhouse gas emissions by over 20%, NOx emissions by up to 10%, and gas consumption by approximately 25%.

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.