Heinzel Group to Invest Over EUR 100 Million in Laakirchen Paper Mill in Austria
(Austria, August 15, 2016) The Supervisory Boards of Laakirchen Papier AG and Heinzel Holding GmbH on Aug. 11 approved the extensive investments for the expansion of the Laakirchen paper mill in Austria involving total spending of over EUR 100 million.
Kurt Maier, CEO of Heinzel Holding, said, “With these investments we will turn Laakirchen with its two paper machines into one of the most competitive and environmentally friendly paper mills in Europe — on a sustainable basis. A precondition for the realization of this project is a substantial efficiency program supported by all employees.”
The investment programme consists of two elements:
–First, Paper Machine 10 will be converted to produce lightweight containerboard using wastepaper as a fibre base.
–Second and simultaneously, the production capacity of Paper Machine 11, which produces SC (supercalendered) paper for magazines, catalogues and commercial print, will be extended considerably.
Mark Lunabba, CEO of Laakirchen Papier, said, “Laakirchen will be able to produce nearly 800,000 tons of paper annually, which means that the long-term future of the location is secured.”
Conversion of PM10
PM10 began operation in 1987 and has been kept in state of the art condition through regular reinvestments. Its present annual output is around 250,000 tons per year of SC paper, but will produce from autumn 2017 onwards lightweight containerboard based on waste paper.
Testliner and fluting products from the 7.50 meter wide PM10 in Laakirchen will be manufactured in different bases weights from 70 g/m2 upwards. In full operation the capacity will reach 450,000 tons per year.
The product range forms an ideal supplement to the qualities produced at Raubling Papier GmbH in Germany, which was integrated into the Heinzel Group at the beginning of 2016. Raubling Papier focuses on special papers for the corrugated board market.
“The Heinzel Group will thus have established an outstanding position in the expanding European packaging paper market,” Maier said.
In the years to come, the Laakirchen and Raubling locations will produce 700,000 tons of containerboard grades annually. These will be marketed under the brand name “starboard”.
Extension of PM11
Parallel to the conversion of PM10, the current capacity of PM11 is about 300,000 tons per year of SC paper, which will be increased in order to use the full potential of the machine. In order to achieve this, an additional calender will be installed and provide paper with higher smoothness and gloss.
“This represents a clear commitment to the production of publication papers in Laakirchen. The investment in the PM11 will enable us to further improve our cost position with regard to SC papers and thus secure our future in a challenging business environment,” Lunabba explained.
The focus of the PM11 will be web offset printing papers with a high content of recycled fibre. However, rotogravure paper customers will continue to be served with products from Laakirchen.
Thomas Krawinkler, Sales and Marketing Manager for Laakirchen, said, “The conversion of the PM10 allows us to balance the declining demand for rotogravure papers in our key markets. Nonetheless, in future our customers can still rely on Laakirchen’s proven quality and first class service.”
During the coming twelve months, PM10 will continue to produce its usual range of SC paper qualities. Subsequently, from autumn 2017 onwards, all customers will be supplied from PM11.
About Heinzel Group
With its industrial locations Zellstoff Pöls AG (Austria), Laakirchen Papier AG (Austria), Raubling Papier GmbH (Germany) and AS Estonian Cell (Estonia), Heinzel Group, which is united under the Heinzel Holding umbrella, ranks among the largest producers of market pulp and magazine paper in Central and Eastern Europe. Since the beginning of 2016, containerboard has also belonged to the group’s range.
To learn more, please visit: www.heinzel.com (Source: Heinzel Group)
Image: Laakirchen Paper Mill (courtesy Heinzel Group)
