West Fraser Timber Co. Ltd announced Monday it would sell its unbleached softwood kraft pulp mill in Alberta, Canada to global sustainable packaging and paper company Mondi Group plc.
The sale of the Hinton, Alberta pulp mill will establish a long-term partnership between the two companies, officials said. As part of the agreement, West Fraser will continue to supply fiber to the Hinton mill under a long-term contract via residuals from West Fraser’s Alberta saw mills. Mondi will invest 400 million euros in the expansion of the Hinton mill, primarily for a new 200,000 ton per annum kraft paper machine expected to be operational by the second half of 2027.
“This transaction creates a sustainable long-term future for the pulp mill, while maintaining the integrated fiber supply chain in place with West Fraser’s operations in the region,” Ray Ferris, West Fraser’s President & CEO, said. “The relationship with Mondi puts the Hinton pulp mill in the hands of a global industry leader, with the vision and experience to maximize opportunities for local employees and the community. We look forward to a mutually beneficial long-term relationship with Mondi and our other stakeholders in Alberta.”
Mondi employs more than 22,000 people at 100 production sites in more than 30 countries.
“We are delighted to be making this investment in Canada and look forward to working with our 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,” Andrew King, Mondi Group CEO, said.
The transaction is still subject to regulatory reviews. West Fraser will provide more information in its second quarter results conference call, the company said.