(UPM, Helsinki, 21 June 2022 at 11:05 EEST) - UPM has signed an agreement to sell 100% of the shares of its Austrian subsidiary UPM Kymmene-Austria GmbH to the HEINZEL GROUP, a leading pulp, packaging and paper producer and trader in Central and Eastern Europe.
The transaction comprises the UPM Steyrermühl site with approx. 400 employees, including the newsprint paper machine with an annual capacity of 320,000 tonnes and the Steyrermühl sawmill operations with an annual timber capacity of 370,000 cubic meters. The parties have agreed not to disclose the value of the deal.
Closing of the transaction and end of newsprint production at UPM Steyrermühl are planned for the end of 2023. HEINZEL is planning to take over responsibility for the mill after closing. Until then, all operations continue as is.
UPM and HEINZEL GROUP will now engage in deeper discussions on specific technical and organizational aspects of the site to plan the future of the mill. HEINZEL plans to operate the UPM Steyrermühl site outside of graphic papers as an integrate together with its Laakirchen mill, which is located in the same communicaty. HEINZEL is considering the production of packaging materials to complement their existing product portfolio. The concrete plans for the repurposing of the new integrate will be communicated by HEINZEL as soon as these have been concluded.
"The agreement benefits both UPM and HEINZEL and supports the development of their businesses in line with market needs. This agreement enables UPM to adapt its newsprint paper production to the long-term market development while leveraging the high value of the Steyrermühl site. This will strengthen our market position while improving our financial performance," says Massimo Reynaudo, Executive Vice President of UPM Communication Papers.
"We are very pleased with the agreement. HEINZEL is a solid and successful player in the industry and will provide a long-term future for the Steyrermühl site. We will continue to collaborate closely with HEINZEL to ensure a smooth transition and enable the strategic development of the site as part of an integrate operated by HEINZEL," Reynaudo continues.
UPM will remain committed to the newsprint business as one of the industry's leading producers, continuing newsprint production at its Schongau, Ettringen, Hürth and Jämsänkoski mills. UPM will also remain committed to the Austrian newsprint market, serving customers from its remaining newsprint mills.
The press release of HEINZEL GROUP on this topic can be found on their company website under this link.
For further information please contact:
UPM Communication Papers, Stakeholder Relations, tel. +49 821 3109 225, paperinfo@upm.com
UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media@upm.com
UPM
We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility, we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 17,000 people worldwide and our annual sales are approximately EUR 9.8 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore - Beyond fossils. www.upm.com
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UPM Communication Papers
UPM Communication Papers is the world's leading producer of graphic papers, offering an extensive product range for advertising and publishing as well as home and office uses. The high performing papers and service concepts of UPM add value to our customers' businesses, while actively fulfilling demanding environmental and social responsibility criteria. With headquarters in Germany, UPM Communication Papers employs approximately 6,500 people. More about UPM Communication Papers and its products at www.upmpaper.com
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UPM Steyrermühl
UPM Steyrermühl is located in Austria, some 60 kilometres from Linz and 70 kilometres from Salzburg. The Steyrermühl paper mill was founded in 1868. Today 400 people are working at the site - distributed among paper mill, sawmill and affiliated companies.
HEINZELGROUP
At four sites in Europe, HEINZEL GROUP produces market pulp, packaging paper and magazine paper and trades in in cellulose, paper, wastepaper and packaging solutions. With its production companies Zellstoff Pöls, Laakirchen Papier, Raubling Papier and Estonian Cell, HEINZEL GROUP is one of the most important cellulose and paper producers in Central and Eastern Europe. The three trading companies of HEINZEL GROUP - heinzelsales, Europapier and Bunzl&Biach - respond flexibly to diverse international customer requirements. The group's success is based on its entrepreneurial spirit and a commitment to long-standing partnerships. Sustainability is a focal point of all activities at HEINZEL GROUP.
