UPM completes sale of newsprint mill to LEIPA
UPM, headquartered in Helsinki, has signed an agreement to sell its Schwedt newsprint mill in Germany and relevant assets to LEIPA Georg Leinfelder GmbH for €70 million ($77 million). The mill can produce 280,000 tonnes of newsprint annually. LEIPA says it plans to convert the mill to produce 450,000 tonnes of linerboard annually. The deal was first announced in April 2016.
As part of the transaction, UPM and LEIPA have entered into an interim contract manufacturing agreement to produce newsprint for a transition period, which would conclude at the end of 2017.
“With this transaction, UPM and LEIPA will have an improved opportunity to develop their businesses to meet the market needs,” says Winfried Schaur, executive vice president, UPM Paper Europe and North America. “LEIPA is a solid and successful player in the liner business.”
UPM produces newsprint at its mills in Chapelle, France; Kaipola, Finland; Hürth and Schongau, Germany; Shotton, U.K; and Steyrermühl, Austria.
LEIPA produces 900,000 tonnes of graphic paper and packaging paper per year at its Schwedt and Schrobenhausen, Germany, mills.