UPM is negotiating 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 in Strasbourg, France.
Founded in 1936, the Finland-based bio and forest industry company’s Stracel paper mill manufactures coated magazine papers and special newsprint, with an annual capacity of 280,000 tonnes and employing 250 people.
VPK and Klingele plan to convert the Stracel mill into a recycled fibre-based containerboard unit, producing fluting and test-liner.
The planned production of the mill would be approximately 300,000 tonnes per year, and the new converted mill would create 140 jobs.
The conversion from the current magazine paper production would require a considerable investment by the two buying companies – the offer is subject to finalisation of its review by the bank mandated for the financing.
According to the plan, UPM would retain part of the Stracel real estate in its possession for potential future production of advanced biofuels.
“UPM has been conducting an active search for a buyer which could engage in a serious and credible project for the industrial restructuring of the Stracel site,” says UPM Paper Business Group president Jyrki Ovaska.
“The plan at hand provides a good opportunity for a new future for Stracel and would create a significant number of job opportunities on the site.”
If UPM accepts the offer that has been submitted, the conversion project could start and the reconversion period would be approximately 12 months. Providing the plan proceeds, the converted mill would start the production in the second half of 2013.
