West Fraser Timber Co. (TSX,NYSE:WFG) has completed the sale of its pulp mill in Hinton, Alberta to the UK’s Mondi plc (LSE:MNDI).
According to Mondi, the company paid US$5 million ($6.8 million) for the pulp mill, which has an annual capacity of 250,000 tonnes of pulp.
Under the terms of the deal, West Fraser will continue to supply the Hinton pulp mill with sawmill waste from its Alberta sawmills.
Mondi said it plans to invest in the mill to improve productivity and sustainability, and to add a new kraft paper machine, which the company said "will integrate its paper bag operations in the Americas to support future growth."
In July 2023, when West Fraser first announced the proposed sale of the pulp mill, the company said Mondi planned to invest €400 million ($581 million) to upgrade the mill, which opened in 1957, according to the Canadian Encyclopedia.
(The original story has been corrected to reflect the sale price is in millions not billions.)
