Hinton Pulp mill acquisition underpins Mondi’s Americas paper bags business

Mondi is to acquire the Hinton Pulp mill in Alberta, Canada, from West Fraser Timber for US$5 million to support its growth in the North America paper bags business. As part of the transaction, Mondi will partner with West Fraser to access local, high-quality fibre from a wellestablished wood source.

With annual pulp capacity for 250,000 tonnes, the Hinton mill is to be expanded by Mondi with an investment of €400 million including a new kraft paper machine producing 200,000 tonnes a year, with start-up expected in 2027.

Both moves will fully integrate operations in the Americas and enable Mondi to secure the longterm supply of high quality, cost competitive kraft paper into its network of 10 paper bag plants in the region, better positioning Mondi to support the growing market demand for industrial and mailer bags.

Commenting on the acquisition, chief executive of Mondi Group Andrew King, said: “Strategically, we are focused on investing to support the growing market demand for our sustainable packaging products, while delivering attractive mid-teen returns through cycle.

“The acquisition of Hinton is an eucalyptus pulp. With an increase of more than 50 percent in UPM’s current pulp capacity, the investment has had a significant impact on Uruguay’s economy. excellent opportunity for us to secure locally-produced kraft paper for our bags customers, helping to meet the current and anticipated future growth in demand for industrial and mailer bags in the Americas. This acquisition will also enable us to further strengthen our position as the global market leader in the production of kraft paper and paper bags.

The pulp maker’s value chain includes eucalyptus plantation operations, the Fray Bentos and Paso de los Toros pulp mills and related logistics, creating 7,000 direct and 10,000 indirect jobs in Uruguay.

“We are delighted to be making this investment in Canada and look forward to working with Hinton colleagues, West Fraser as a long-term partner, and other local stakeholders towards improving the mill’s environmental footprint and securing its sustainable future.”