Mondi celebrated the completion of the Hinton Pulp mill acquisition and its entry into the Canadian market during an event on Wednesday, March 20.
The Europe-based packaging and paper company officially acquired the mill from West Fraser for $5 million USD ($6.6 million) in February, and it will be entering a long-term partnership with West Fraser to access local fibre.
Roman Senecky, Mondi's chief operating officer for Kraft Paper, said the acquisition will enable Mondi to secure a long-term supply of kraft paper into its network of 10 paper bags plants in the region.
“We actually want to be present in North America and supply our existing customers and the bags plants and all the future customers requiring these sustainable packaging solutions by us directly from North America rather than importing paper from Europe, which was the traditional way of doing so,” Senecky said.
“It will be even more sustainable than today because we will be closer, we will have shorter supply chain, better service and lower environmental impact.”
Subject to pre-engineering, permitting and market development, Mondi intends to invest €400 million ($591.6 million) in the expansion of Hinton, primarily for a new kraft paper machine capable producing 200,000 tonnes of kraft paper annually for sustainable packaging solutions.
Paul DiJulio, managing director for Mondi Hinton, thanked the mayor and town of Hinton as well as provincial officials for their support and attending the event.
“This was about helping our employees get excited about the future,” DiJulio said.
“This was their day one, but it's your day one too because you have all participated in our success.”
Matt Jones, minister of Jobs, Economy and Trade, highlighted how Alberta’s forest manufacturing industry employs about 20,000 people and has attracted $7 billion in investments over the past decade.
“Mondi’s acquisition of the Hinton pulp mill will make a meaningful impact on the local community with this plant expansion that will support the lives and livelihoods of hundreds of families in the area while helping to grow and diversify our economy for decades to come,” Jones said.
“Mondi will utilize local, high-quality fiber to meet future demand for sustainable packaging solutions.”
Mondi is expected to create 120 permanent and construction jobs in the Hinton area, according to the Alberta government.
In addition, the Town of Hinton has entered a strategic partnership with Mondi to ensure water supply and sewage treatment would continue, as the town operates its water treatment plant on the mill’s property.
“As we stand here today, marking the grand opening of Mondi Hinton, we're not just celebrating the culmination of hard work and dedication; we are celebrating a new chapter in our town's history,” said Hinton Mayor Nicholas Nissen.
“The mill, of course, is the start of our town, and with Mondi today, it’s the restart of our town.”
