Schweighofer Group Sells Dissolving Pulp Mill in Austria

To focus on its core business of wood processing, the Schweighofer Group, one of Europe’s leading timber processing companies, has sold its dissolving pulp subsidiary Schweighofer Fiber GmbH in Hallein, Austria, to TowerBrook Capital Partners. The transaction closed on Sept. 12, 2017. 

 

 

The Hallein mill specializes in the production of viscose pulp and is listed among the most profitable of the "Top 250" companies in Austria. Jörg Harbring, who has served as Schweighofer Fiber’s managing director since 2004, will remain in his position. The operation will retain all of its existing employees. TowerBrook plans future investments to further expand the mill’s capacities. 

The Schweighofer Group acquired the then unprofitable Hallein paper pulp mill in 2011. With the strategic goal of developing an internationally successful dissolving pulp mill, Schweighofer invested a total of EUR 60 million to enable the production of viscose pulp. The new products were first sold at the beginning of 2013. Under the guidance of the Schweighofer Group, Schweighofer Fiber GmbH quickly managed its turnaround, securing 250 jobs. The mill’s main market for viscose pulp is Asia, where the products manufactured from local spruce in Hallein are heavily sought after. 

Schweighofer Group’s Gerald Schweighofer noted that "the dissolving pulp mill in Hallein is a success story in every aspect. We acquired the mill when it was in a difficult situation. Due to substantial investments, we were able to render the mill profitable, thus securing the site and its employees. By doing so, we have clearly demonstrated our principle of combining economic, social, and ecologic responsibility. The decision to sell this profitable production site is purely strategic. We will focus entirely on our core business of wood processing while resting assured that the plant in Hallein is well taken care of."