Heinzel Group to Invest EUR 100 Million in Austria

 

This past week, the Supervisory Boards of Laakirchen Papier AG and Heinzel Holding GmbH approved extensive investments for the expansion of the Laakirchen paper mill in Austria, involving total spending of more than EUR 100 million.

 

Kurt Maier, the Heinzel Holding CEO, said that "with these investments, we will turn Laakirchen with its two paper machines into one of the most competitive and environmentally friendly paper mills in Europe – on a sustainable basis. A precondition for the realization of this project is a substantial efficiency program supported by all employee."

 

The investment program consists of two elements. First, PM 10 is to be converted to produce lightweight containerboard using wastepaper as fiber base. Secondly and simultaneously, the production capacity of PM 11 producing SC paper for magazines, catalogs, and commercial print will be extended considerably. "Laakirchen will be able to produce nearly 800.000 metric tons of paper annually, which means that the long-term future of the location is secured," said Mark Lunabba, Laakirchen Papier AG CEO.

 

PM 10 was taken into operation in 1987 and has been kept in state of the art condition through regular reinvestments. Its present annual output is around 250,000 metric tpy of SC paper, but will produce, from autumn 2017 onwards, lightweight containerboard based on wastepaper. Testliner and fluting products from the 7.50 meter wide PM,10 in Laakirchen will be manufactured in different bases weights from 70 gsm upwards. In full operation, the capacity will reach 450.000 metric tpy. 

The product range forms an ideal supplement to the qualities produced at Raubling Papier GmbH in Germany, which was integrated into the Heinzel Group at the beginning of 2016. Raubling Papier focuses on special papers for the corrugated board market.

 

Maier said that "the Heinzel Group will thus have established an outstanding position in the expanding European packaging paper market."  In the years to come, the Laakirchen and Raubling locations will produce 700.000 metric tons of container board grades annually. These will be marketed under the brand name "starboard."

Parallel to the conversion of PM 10, the current capacity of PM 11 of around 300,000 metric tons of SC paper will be increased to use the full potential of this machine. To achieve this, an additional calender will be taken into operation and give paper higher smoothness and gloss. "This represents a clear commitment to the production of publication papers in Laakirchen. The investment in PM 11 will enable us to further improve our cost position with regard to SC papers and thus secure our future in a challenging business environment,"  said Lunabba.

 

The focus of PM 11 will be web offset printing papers with a high content of recycled fiber. However, rotogravure paper customers will continue to be served with products from Laakirchen. "The conversion of PM 10 allows us to balance the declining demand for rotogravure papers in our key markets. Nonetheless, in the future our customers can still rely on Laakirchen’s proven quality and first class service. During the coming 12 months, PM 10 will continue to produce its usual range of SC paper qualities. Subsequently, from autumn 2017 onwards, all customers will be supplied from PM 11," said Thomas Krawinkler, Laakirchen Sales and Marketing Manager.

 

With its industrial locations, Zellstoff Pöls AG (Austria), Laakirchen Papier AG (Austria), Raubling Papier GmbH (Germany), and AS Estonian Cell (Estonia), Heinzel Group, which is united under the Heinzel Holding umbrella, ranks among the largest producers of market pulp and magazine paper in Central and Eastern Europe. Since the beginning of 2016, containerboard has also belonged to the group’s range. 

 

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 wastepaper company in Austria and the leading wholesaler in Central and Eastern Europe. The Heinzel Group’s successful growth is based on the fulfillment of the highest customer demands with regard to quality and efficiency.