The acquisition of Kwidzyn mill will allow MMK to expand its activities in virgin fibre-based cartonboard segment
Mayr-Melnhof Karton (MMK) has agreed to acquire Poland-based Kwidzyn pulp and paper mill and supporting operations from International Paper (IP) for about $812m.
The acquisition of Kwidzyn mill will allow MMK to expand its activities in virgin fibre-based cartonboard segment.
Kwidzyn site has a pulp mill with an annual capacity of around 400,000 tonnes, as well as, four integrated cartonboard / paper machines.
With around 2,300 employees, the Kwidzyn mill has the capacity to produce 740,000 tonnes of folding boxboard, uncoated freesheet, speciality kraft papers and market pulp on four machines. The FBB board machine, which has 260,000t annual capacity, is said to be a key tool on the site.
Recently, the company has converted one of its paper machines to meet the increasing demand for flexible fibre-based packaging products. Its production is increased up to an annual capacity of 75,000 tonnes.
Kwidzyn mill has two copy paper machines that have an annual total capacity of 410,000 tonnes.
Mayr-Melnhof Group CEO Peter Oswald said: “The acquisition of Kwidzyn perfectly complements our existing cartonboard business.
“It enables MMK to drive innovation for more sustainable packaging solutions in the growing virgin fibre-based cartonboard market and creates attractive new perspectives from the integration of pulp and paper at a site in Europe with cost advantages.”
Subject to customary closing conditions, the acquisition is expected to be closed in the third quarter of 2021.
In December last year, International Paper announced that it intends to spin off its printing papers business into a standalone and publicly-traded company to focus more on its corrugated packaging and absorbent fibres businesses.