The Hallein pulp mill has an annual production capacity of approximately 160,000 metric tons of sulfite pulp. It employs about 200 people. The divestment is expected to reduce M-real's annual sales by some EUR 75 million and improve the operating result by approximately EUR 5 million based on Hallein mill's actual performance in 2010.
"M-real is focusing on the cartonboard business and this transaction is a good example of our work to divest the non-core assets. M-real does not use pulp from Hallein in its own board or paper operations and the profitability of the mill as a market pulp supplier has not met our targets. This is a good solution also for the mill as the new owner is in a better position to develop the operation further," said Mikko Helander, CEO of M-real.
The transaction is subject to the approval of Austrian competition authorities and is expected to be closed during the third quarter of this year. M-real says it will continue to sell Hallein pulp volumes to the market during the 12-15 months following closing until the new owner has established its own sales organization and systems.
The Schweighofer Group is a family owned, Austrian-based holding company with companies in different branches and countries. The main focus of the group is the forest industry.
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