Finnish paper group UPM is selling its Austrian subsidiary UPM Kymmene-Austria to Heinzel Group, a leading pulp, packaging and paper producer and marketer in Central and Eastern Europe. The deal is expected to be finalized by the end of 2023.
UPM Kymmene-Austria comprises two units located in Austria: the UPM Steyrermühl newsprint mill, which employs approximately 400 people and has a paper machine with an annual capacity of 320,000 tonnes, and the Steyrermühl sawmill, which has an annual wood capacity of 370,000 m 3 .
The closure of newsprint production at UPM Steyrermühl has already been announced and is scheduled to take place at the end of 2023.
End of graphic paper production
The future owner of UPM Steyrermühl will not restart the production of graphic paper. Like many other paper manufacturers, the group wants to move into the production of packaging materials and "install a hub for sustainable packaging papers and renewable energy" starting in 2024.
The evaluation of the suitability of the Steyrermühl machines for the production of packaging paper will be started. This evaluation will not only concern the paper machine currently in operation, but also the site's second paper machine shut down by UPM in 2017 .
Heinzel Group currently produces kraft paper and corrugated packaging at its sites in Pöls and Laakirchen in Austria and in Raubling in Germany. "At Euros Steyrermühl, we will be looking to complement our existing products. We see great potential in the rapidly growing markets for sustainable packaging papers." says Sebastian Heinzel, CEO of the Heinzel Group.
After the closure of the Steyrermühl mill, UPM will continue to produce newsprint at three mills in Germany (Schongau, Ettringen and Hürth) and one in Finland (Jämsänkoski). It states "remain committed to the newsprint business as one of the industry's leading producers."
