The transaction involves the UPM Steyrermühl site with around 400 employees, a machine for the production of newsprint with a capacity of 320,000 t a year and the Steyrermühl sawmill with an annual lumber producing capacity of 370,000 m³. Both parties agreed not to disclose the selling price.
The closing of the transaction and the discontinuation of the newsprint production at UPM Steyrermühl are scheduled for the end of 2023. Heinzel plans to continue operating the plant as usual until then.
UPM and Heinzel Group will engage in detailed discussions on the technical and organizational aspects of the Steyrermühl site in order to plan its future. Heinzel intends to operate the UPM Steyrermühl site as an integrated company with its co-located mill in Laakirchen and is considering the production of packaging materials to complement the group’s existing range of products. Heinzel will announce concrete plans regarding the new organizational structure as soon as it concludes the planning phase.
“Both UPM and Heinzel benefit from the agreement which supports the development of their businesses in line with market needs. This agreement enables UPM to adapt its newsprint production to the long-term market development while maintaining the high value of the Steyrermühl site. This will strengthen our market position and improve our financial performance,” Massimo Reynaudo, Executive Vice President of UPM Communication Papers, says.
“We are very pleased with the agreement. Heinzel is a solid and successful player in the industry and will secure the long-term future of the Steyrermühl site. We will continue to work closely with Heinzel to ensure a smooth transition and help with the strategic development of the site as part of an integrated site operated by Heinzel,” Reynaudo adds.
UPM will remain committed to its newsprint business and will continue production at its German paper mills in Schongau, Ettringen and Hürth as well as at the Finnish Jämsänkoski site to supply the Austrian newsprint market.
