West Fraser Timber sells pulp mill in Hinton, Alta, to Mondi Group
VANCOUVER – West Fraser Timber Co. Ltd. has signed an agreement to sell its unbleached softwood kraft pulp mill in Hinton, Alta, to Mondi Group, an integrated packaging and paper company.
Mondi says it is paying US$5 million for the plant and plans to invest €400 million to expand the facility.
It plans to add a 200,000 tonne-per-year kraft paper machine that is expected to be operational in the second half of 2027.
West Fraser will continue to supply fiber to the Hinton plant under a long-term contract.
Andrew King, CEO of the Mondi Group, says the acquisition is an excellent opportunity for the company to secure locally sourced kraft paper for its customers.
The deal is subject to regulatory approval and is expected to close by the end of this year.
This report from The Canadian Press was first published on July 10, 2023.
Companies in this story: (TSX:WFG)
