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(UPM, Helsinki, June 21, 2022, 11:05 EEST) – UPM has signed an agreement to sell 100% of shares in the Austrian subsidiary UPM Kymmene-Austria GmbH to HEINZEL GROUP, a leading producer of pulp, packaging and paper producers and traders in Europe Central and Eastern.
The transaction includes the UPM Steyrermühl plant with around 400 employees, a newsprint machine with a capacity of 320,000 tonnes / year, and a Steyermühl sawmill with a capacity of 370,000 cubic meters of lumber per year. The parties to the contract undertook not to publish the sale price.
The closing of the transaction and the cessation of newsprint production at UPM Steyrermühl is planned for the end of 2023. HEINZEL plans to take over responsibility for the plant after closing the deal. Until then, operations will continue as usual.
UPM and the HEINZEL GROUP will now start in-depth discussions on the technical and organizational aspects of the UPM Steyrermühl plant in order to plan the future of the plant. HEINZEL plans to continue operating the UPM Steyrermühl plant as a combined paper company with the co-located Laakirchen plant and is considering the production of packaging materials to complement the company’s existing product portfolio. Concrete plans to adapt the new organizational structure will be published by HEINZEL as soon as the planning phase is completed.
“The agreement benefits both UPM and HEINZEL and supports the development of business activities in line with the respective market needs. It enables UPM to adapt its newsprint production to long-term market developments and to maintain the high value of the Steyrermühl plant. will be ours, strengthen our market position and improve our earnings, ”he says Massimo ReynaudoExecutive Vice President, UPM Communication Papers.
“We are very pleased with the contract. HEINZEL is a solid, successful player in the industry and is prepared to ensure the long-term future for the Steyrermühl plant. We will work closely with HEINZEL to ensure a smooth transition and strategic development with Steyrermühl as part of an integrated site, ”continues Reynaudo.
UPM supports the newsprint industry and, as one of the industry leaders, will continue to produce at its paper mills in Schongau, Ettringen, Hürth and Jämsänkoski, supplying the Austrian newspaper market.
The HEINZEL GROUP press release on this subject can be found on the company’s website at the following link.
For more information, please contact:
UPM Communication Papers, Stakeholder Relations, tel. +49 821 3109 225, email@example.com
UPM, media relations
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We provide renewable and responsible solutions and innovations for a fossil-free future. Our group consists of six business areas: UPM Fibers, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As an industry leader in sustainable development, we join the United Nations’ 1.5-degree target for mitigating climate change through science. We employ approximately 17,000 people worldwide and our sales are approximately EUR 9.8 billion per year. UPM shares are listed on the Nasdaq Helsinki Ltd. Stock Exchange. UPM Biofore – Except for Fossils. www.upm.com
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UPM communication documents
UPM Communication Papers is a world-leading producer of graphic papers, offering a wide range of products to clients in the advertising, publishing, home and office sectors. UPM’s high-performance papers and service concepts create value for our corporate customers while actively adhering to the strictest environmental and social responsibility criteria. UPM Communication Papers is based in Germany and employs approximately 6,500 people. More information about UPM Communication Papers and its products is available at www.upmpaper.com
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UPM Steyrermühl is located approximately 60 km from Linz and 70 km from Salzburg. Originally founded in 1868, the plant employs around 400 people, divided between a paper mill and sawmill, as well as subsidiaries and partner companies on site.
THE HEINZEL GROUP
The HEINZEL GROUP produces pulp, packaging paper and warehouse paper at four locations in Europe and trades pulp, paper, recycled paper and packaging solutions around the world. Thanks to the production companies Zellstoff Pöls, Laakirchen Papier, Raubling Papier and Estonian Cell, the HEINZEL GROUP is one of the most important pulp and paper producers in Central and Eastern Europe. The three trading companies of the HEINZEL Group – heinzelsales, Europapier and Bunzl & Biach – flexibly respond to the diverse needs of international customers. The development success of the group of companies is based on the spirit of entrepreneurship and focus on long-term partnerships. Sustainability is at the heart of all the activities of the HEINZEL GROUP.
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