UPM a Finland-based paper company has announced that the company is set to negotiate with VPK Packaging Group and Klingele Papierwerke for the sale of the assets and part of the land at its French Stracel paper mill.
Both the companies VPK and Klingele through a newly established joint venture company, made a formal offer, which is subject to finalisation of its review by the bank mandated for the financing.
According to UPM, the Stracel mill, which currently has an annual production capacity of 280,000t magazine paper will be converted by the companies into a packaging paper plant that produces fluting and test-liner. The paper machine will produce about 300,000t of recycled fluting and testliner of grammages between 80 and 130g/m² annually, post conversion.
As part of a comprehensive review of the long term competitiveness of its publication paper mills, UPM announced its intention to sell or exit its Stracel paper mill in August 2011.
The parties have not disclosed the transaction value.