Global packaging and paper group Mondi has acquired the Hinton Pulp mill in Alberta, Canada, from West Fraser Timber, a diversified wood products company. 

Completion of this transaction, valued at $5m, follows the successful navigation of Canadian regulatory reviews and the fulfilment of standard closing conditions. 

The Hinton Pulp mill produces unbleached kraft pulp and its current production capacity stands at approximately 250,000 tonnes (t) of pulp annually. 

West Fraser president and CEO Sean McLaren said: “We would like to thank our dedicated employees, the community of Hinton, and the Government of Alberta, for their efforts in helping close this transaction. The future of the Hinton Pulp mill is bright.” 

Through this acquisition, Mondi aims to bolster its existing sustainable packaging capabilities and secure a local supply of high-quality fibre from various wood baskets under a long-term supply partnership with West Fraser.   

Mondi has significant investment plans to enhance the mill’s current productivity and sustainability performance, which is subject to pre-engineering and permitting. 

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By GlobalData

At the time of the initial announcement of this acquisition in July 2023, Mondi confirmed that it plans an investment of €400m ($429m) at the Hinton Pulp mill, primarily for installing a new kraft paper machine with an annual capacity of 200,000t.  

Installation of this machine, which is expected to be operational by the second half of 2027, is said to be a key part of Mondi’s strategy to consolidate its paper bag operations in the Americas. 

The integration facilitated by this acquisition and subsequent investment will also allow Mondi to ensure a consistent supply of cost-effective kraft paper to its network of ten paper bag plants in the region.  

The move is also anticipated to position Mondi favourably to meet the increasing demand for industrial and mailer bags. 

Mondi CEO Andrew King said: “We are delighted to welcome our new colleagues from Hinton Pulp mill to Mondi and look forward to working together to secure the mill’s future and support Mondi’s growth in North America with our portfolio of sustainable packaging.”