International Paper wraps up €670m sale of Kwidzyn pulp and paper mill

International Paper, an American pulp and paper company, has wrapped up its previously announced €670 million sale of the Kwidzyn pulp and paper mill and supporting operations in Poland to Mayr-Melnhof Group (MM).

The all-cash deal was announced in February 2021.

The pulp and paper mill in Kwidzyn mill has a workforce of nearly 2,300 people. It has a production capacity of 740,000 metric tons per year of folding boxboard, specialty kraft papers, uncoated freesheet, and market pulp.

The Kwidzyn pulp and paper mill has four connected cardboard/paper machines, which includes a fiber board (FBB) machine with an annual capacity of 260,000 tons of cardboard.

International Paper has sold the Polish pulp and paper mill in line with the company’s intentions to spin off its printing papers business into an independent, publicly-traded company, as per an announcement made in December 2020. At that time, the American pulp and paper company said that the move would help it focus on its corrugated packaging and absorbent fibers businesses.

The Kwidzyn pulp and paper mill’s new owner — Mayr-Melnhof Karton is an Austria-based manufacturer of cardboard and folding boxes.

Mayr-Melnhof Group said that the acquisition of the pulp and paper mill in Poland is part of its strategy to grow its virgin fiber board (FBB) business.

Apart from that, the acquisition will help it diversify its product portfolio by adding an attractive pulp and paper production with a focus on packaging kraft papers and uncoated fine paper (UWF).

Peter Oswald — CEO of Mayr-Melnhof Karton said: “I am pleased that we are entering two new core businesses with uncoated fine paper and packaging kraft paper.

“MM Kwidzyn will drive our innovations for more sustainable packaging solutions in the growing virgin fiber board market and also create attractive new perspectives through the integration of pulp and paper at a European location with cost advantages.”