Mondi Concluded Takeover of West Fraser Hinton Pulp Mill

SEATTLE (Scrap Monster): West Fraser Timber Co. has completed the sale of its pulp mill in Hinton, Alberta to Mondi Group plc, a global company in sustainable packaging and paper. It must be noted that the sale of the mill, opened in 1957, was first announced in July last year.

The transaction was completed following final regulatory review and satisfaction of customary closing conditions.

Mondi paid US$5 million for the unbleached softwood kraft pulp mill, which is estimated to be having an annual capacity of 250,000 tonnes of pulp. As per terms of the deal, the sawmill waste from West Fraser’s Alberta sawmills will be supplied to the pulp mill.

Mondi plans to add a new kraft paper machine at the pulp mill, as part of plans to integrate its paper bag operations in the Americas. The proposed 200,000 tonne per annum kraft paper machine is expected to become operational during the second half of 2027. It has also committed to make fresh investment at the mill, aimed at improving its productivity and sustainability. The proposed investments by Mondi are likely to improve the mill’s environmental footprint and secure its sustainable future.

TD Securities Inc. acted as exclusive financial advisor to West Fraser in the transaction. Also, legal advices were provided by McMillan LLP.

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