Klingele and VPK made an offer for an undisclosed amount for assets of the UPM Stracel mill with the intention to convert the mill into a Waste Based Containerboard unit.
As UPM declared its intention for the sale or other exit of the UPM Stracel magazine mill at Strasbourg, VPK Packaging Group NV (Belgium) and Klingele Papierwerke (Germany) announce that they have made on July 2nd 2012 through a newly established joint venture company a formal offer providing for the sale and purchase of assets and a parcel of land of the paper mill site of Stracel.
With their offer VPK and Klingele express their intention to convert the Stracel LWC paper plant into a packaging paper plant that, after conversion of the paper machine, will produce +/- 300.000 tons per year of fluting and testliner between 80 and 130 gsm, on a paper machine width of 8.40 m.
The intended project, and in connection herewith the conversion of the paper machine and its related equipment, involves an investment amount of more than 100 million EUR on top of the purchase price and will create 140 jobs after conversion on site.
If the offer is accepted by UPM after that the appropriate information – consultation procedure has been conducted with the relevant employee representative bodies of UPM France, the project in Strasbourg can take off as soon as possible after a reconversion period of 12 months. The reconverted paper machine is scheduled to start producing in second half of 2013.
The realization of this ambitious and challenging project would fit in the strategy of VPK and Klingele to concentrate on production of high value added packaging materials based on recycled paper fiber, and will strengthen VPK’s as well as Klingele’s groups’ position on a long term.
Companies profile:
VPK Packaging Group NV, listed on Euronext Brussels, is an integrated European packaging group with 33 companies spread across 12 European countries, realizing sales of 700 mio € and having a total of 3.000 employees.
Klingele, a German family owned company since 1920, is one of the leading independent producers of containerboard and packaging made of corrugated board. The company consists of one paper mill, six integrated corrugated plants and seven converting plants in Europe and Africa, realizing sales of 340 mio € and having a total of 1.250 employees.
The total production of both respective groups VPK and Klingele amounts to 600.000 tons of paper and 1.000.000 tons of packaging.
The raw material exists almost solely of recycled paper fiber and contributes by this actively to a sustainable management of our natural sources.
For further information, please contact:
Pierre MACHARIS, CEO of VPK Packaging Group NV
Erik PEETERS, CFO of VPK Packaging Group NV
T: + 32 52 261 208
M: + 32 478 500 387
Dr. Jan KLINGELE, Managing Partner of Klingele Papierwerke
Sylvia HUBER, Public Relations
T: + 49 7151 701 278