Finland-based paper company UPM has finalised the sale of assets and land of the UPM Stracel paper mill site in Strasbourg, France, to Blue Paper for an undisclosed value.
Blue Paper is the joint venture company of VPK Packaging Group and Klingele Papierwerke.
The mill will be transformed by Blue Paper to produce recycled fibre-based fluting and test-liner, after completing investments in autumn 2013.
The mill is expected to produce about 300, 000t of fluting and test-liner annually.
UPM's move to sell its mill was part of the company's plan to adjust its magazine paper and newsprint paper capacity to match the needs of its global customer base originally announced in August 2011.
On 4 January 2013, the company terminated the production of coated magazine paper at the mill.
In July 2012, UPM entered into negotiations with VPK Packaging Group and Klingele Papierwerke through their newly created joint venture company, for the sale of assets and part of the land at the UPM Stracel paper mill site.
Both the companies have made an offer on the acquisition of assets from UPM, which is subject to finalisation of its review by the bank mandated for the financing.
As per the plan, UPM will retain part of the Stracel real estate in its possession for potential future production of advanced biofuels.
UPM, which completed a comprehensive review of the long-term competitiveness of its publication paper mills in August 2011, announced the intent for the sale or other exit of the UPM Stracel paper mill, as a part of the review.
Image: UPM's paper mill will produce about 300,000t of fluting and test-liner annually. Photo: UPM.