UPM finalizes strategic sale to Heinzel Group

UPM has completed the sale of 100% of the shares of UPM Kymmene-Austria GmbH to the HEINZEL GROUP, a leading player in Central and Eastern Europe. The transaction includes the UPM Steyrermühl facility, which has a 320,000 tonne per year newsprint machine and a sawmill with 370,000 cubic meters of lumber capacity. Although financial details remain confidential, newsprint production at UPM Steyrermühl is expected to cease at the end of 2023, at which time HEINZEL will take over management of the mill.

HEINZEL GROUP plans to operate the UPM Steyrermühl site in an integrated manner with its Laakirchen plant, located in the same area, considering the production of packaging materials to complement its existing portfolio. The parties will now embark on more detailed discussions on technical and organizational aspects of the site to plan its future.

Massimo Reynaudo, Executive Vice President of UPM Communication Papers said, “The agreement benefits both UPM and HEINZEL and supports the development of their businesses in line with market needs. This agreement enables UPM to adapt its newsprint paper production to the long-term market development while leveraging the high value of the Steyrermühl site. This will strengthen our market position while improving our financial performance”

Reynaudo emphasizes that UPM will maintain its leading position in the newsprint industry, with continued production at its other facilities and serving the Austrian market from its remaining plants. The close collaboration will ensure a smooth transition and facilitate the strategic development of the site within the HEINZEL GROUP-led operation.