Baden Würtemberg, Germany, 08 November 2008 -- Arctic Paper, one of Europe’s leading companies in the manufacture and sales of fine paper, is acquiring Mochenwangen Papier GmbH. Necessary documents for regulatory and antitrust approvals have been filed with the German Bundeskartell.
Mochenwangen Papier manufactures 115,000 metric tons of fine paper annually and is one of Europe’s leading paper mills, manufacturing paper for paperback books. This production complements the paper range produced at Arctic Paper’s other mills.
”We have been interested in purchasing Mochenwangen for a long time, and have now reached an agreement with the previous owner regarding the conditions of purchase. With this acquisition we expand our product range and further broaden our array of strong brands. We will also be better positioned to strengthen our customer service,” said Olle Grundberg, CEO of Arctic Paper.
”Arctic Paper has grown organically in recent years. Our strategy is to grow further, both through restructuring with purchases of interesting European mills and through continued organic growth,” Grundberg said.
The seller is the German company Golzern Holding, which has owned Mochenwangen GmbH since 2002.
”I am delighted and grateful that we reached an agreement with Arctic Paper. Mochenwangen is gaining a new, competent, and long-term owner that is absolutely committed to developing the mill further,” said Stephan Schröter, CEO and owner of Golzern Holding.
Mochenwangen Papier is located in southwestern Germany, in the state of Baden-Würtemberg, close to large forested areas. The mill has 190 employees and produces well-known quality papers, of which 60% of the production is sold in the domestic market. The largest markets outside Germany are Italy, France, and the United Kingdom.
Mochenwangen Papier has three paper machines. Arctic Paper intends to continue the process of increasing efficiency, modernization, and share of book paper production.
”We will also develop the mill’s sales organization, while also integrating it with our own. We see huge scope for, using our strong sales organization, increasing the export of fine paper from the mill in Mochenwangen,” said Grundberg.
Just like Arctic Paper, Mochenwangen Papier is committed to sustainable environmental practices. The mill is working actively to ensure that more paper types produced in the mill will be made from pulp with environmental certification from the Forest Stewardship Council (FSC). This certification is an international standard, guaranteeing that the pulp originates from forests that have been cultivated sustainably.
”The purchase of Mochenwangen comes at a perfect time for us. Our industry has had a difficult seven or eight years and profitability is generally weak, but there are reasons for optimism. We have been able to increase the prices for fine paper, if only marginally, and the capacity balance has improved through the closure of some small mills,” said Grundberg.
Arctic Paper owns the Swedish paper mills Arctic Paper Munkedals AB and Arctic Paper Håfreström AB, as well as Arctic Paper Kostrzyn S.A in Poland. With the purchase of Mochenwangen Papier, Arctic Paper increases its production capacity to 700,000 metric tons per year.
Arctic Paper manufactures and markets graphic fine paper of superior quality. The company is one of the leading companies in Europe within its segment. Manufacturing takes place at Arctic Paper’s Swedish paper mills Arctic Paper Munkedals and Arctic Paper Håfreström and in Poland, Arctic Paper Kostrzyn. Arctic Paper, which has its head office in Gothenburg, has 1250 employees and sales offices in 15 countries in Europe. Turnover in 2007 amounted to SEK 3.6 billion (about EUR 391 million).