Finnish paper company, UPM has signed an agreement on the sale of assets, part of the land of the UPM Stracel paper mill site with Blue Paper, the joint venture company of VPK Packaging Group and Klingele Papierwerke.
According to the company, the transaction is expected to be closed during March 2013, when all the legal and administrative conditions are fulfilled.
The sale of Stracel is part of UPM’s strategy to adjust its magazine paper and newsprint paper capacity to match the needs of its global customer base originally announced in August 2011.
Blue Paper will utilize the mill to produce recycled fiber-based fluting and test-liner after completing investments in September 2013. It will create 130 new jobs at the mill which will be offered to former Stracel employees.
VPK Packaging is an integrated European packaging group with 33 companies spread across 12 European countries, realizing sales of €700m with 3,000 employees.