SEATTLE (Scrap Monster): UPM announced sale of 100% shares of its Austrian subsidiary UPM Kymmene-Austria GmbH to the HEINZEL GROUP. The transaction value was not disclosed.
According to UPM press release, sale includes the UPM Steyrermühl site, which employs nearly 400 workers. The site has a newsprint machine with a capacity of around 320,000 tonnes per annum and a sawmill operation with an annual timber capacity of nearly 370,000 cubic meters.
The transaction is expected to close by the end of 2023, after which HEINZEL will take responsibility of the mill. Until then, mill operations will continue as usual. UPM will engage in deeper discussions with HEINZEL on the specific technical and organizational aspects of the site.
Commenting on the agreement, Massimo Reynaudo, Executive Vice President of UPM Communication Papers noted that the agreement benefits both the companies and supports development of their businesses aligned with the needs of the market. The agreement will help UPM to adapt its newsprint paper production to the long-term market development and further strengthen its market position, Reynaudo added.
UPM’s newsprint production at its Schongau, Ettringen, Hürth and Jämsänkoski mills will remain unaffected, the press release said.