Extensive investments at the Heinzel Group’s industrial locations

Vienna, October 30th 2015. The Heinzel Group has drawn up ambitious acquisition and expansion plans for its plants in both Austria and Estonia. Investments totalling EUR 150 million are foreseen for the group’s three existing, industrial locations.
 
The Heinzel Group will also take over the Mondi Raubling GmbH paper mill including Chiemgau Recycling GmbH for a purchase price of EUR 25 million, subject to approval by the anti-trust authorities.
 
At the same time, the group’s trading companies are to further strengthen their global market position through acquisitions. Accordingly, as announced today by CEO Alfred H. Heinzel, the expectations for the 2015 financial year are most optimistic.

Of the current Heinzel Group plants, irrespective of the recent fire involving the PM10 paper machine, production capacity at the location in Laakirchen is to be gradually raised from its present level of 560,000 t/y to 800,000 t/y. The goal of the planned investment is to focus the production on growth articles such as SC offset and digital and to complement the successful “starkraft” packaging paper manufactured at the sister company in Pöls with machine-glazed (MG) and machine-finished (MF) products.
 
Alfred H. Heinzel: “As a result of these investments, in future the mill in Laakirchen will not only manufacture magazine paper for rotogravure and offset printing, but also machine finished and liner packaging paper. Owing to current developments in the packaging market these products are in increasing demand and we wish to actively exploit this trend, especially in view of our good geographic position.” In particular, sales of product and transport packaging, resource-saving packaging and flexible food packaging are constantly on the rise. The planned investments are to be concluded by mid-2017. Alfred H. Heinzel: “In view of the spending in Laakirchen, the acquisition of the Mondi mill in Raubling represents a sensible supplementation to the product range and in addition will contribute to the securing of raw material supplies.” The purchased mill has a capacity of around 220,000 t/y and manufactures corrugated special grades on two paper machines. At the same location Chiemgau Recycling GmbH operates a sorting plant for waste paper and liquid board packaging.
 
Parallel to the investments in Laakirchen and this latest acquisition, the Heinzel Group is to raise the market pulp and MG kraft paper production capacity at its mill in Pöls from its 450,000 to 550,000 t/y. At the same time, in the period up to 2018, the Estonian Cell group company will upgrade its BCTMP pulp output capability by 30,000 to 200,000 t/y.
 
Apart from the growth plans for the industrial area, the companies in the trading area, heinzelsales, Europapier and Bunzl & Biach, are pursuing various acquisition projects. Alfred H. Heinzel: “In 2015, the trading segment was strengthened by the addition of three offices, in particular in Latin America. We therefore wish to further consolidate our global market presence from what is already a strong position. This will allow us to maintain our successful growth course of recent years.”
 
Despite the fire-related outage of the PM10 in Laakirchen until December and the restart of the large liquor boiler in Pöls at roughly the same time, Heinzel anticipates both improved sales revenues and results for 2015.

ABOUT THE HEINZEL GROUP

The Heinzel Group, which is united under the Heinzel Holding umbrella, ranks with its industrial locations Zellstoff Pöls AG, Laakirchen Papier AG (both Austria) and AS Estonian Cell (Estonia) among the largest producers of market pulp and magazine paper in Central and Eastern Europe. The group’s Trading Business Area includes Wilfried Heinzel AG, a globally active pulp, paper and board trading company, and Europapier International AG, the leading paper merchant in Central and Eastern Europe. In addition, Bunzl & Biach GmbH is the largest and most important waste paper company in Austria and the leading wholesaler in Central and Eastern Europe. The Heinzel Group’s successful growth is based on the fulfilment of the highest customer demands with regard to quality and efficiency.

For enquiries, please contact

Klaus Vlach
Internal Audit, Organizational Development
Tel. +43-1-260 11-467
klaus.vlach@heinzel.com
 
Alfred Heinzel
Tel. +43-1-260 11-401
office@heinzel.com
 
Heinzel Holding GmbH
Wagramer Strasse 28–30
1223 Vienna
Austria
www.heinzel.com

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