Heinzel to Install New Kraft Paper Machine at Pols Mill in Austria

Alfred Heinzel, chairman and CEO of the Heinzel Group.

May 10, 2012 (Press Release) - Alfred Heinzel, chairman and CEO of the Heinzel Group, has announced the construction of a new paper machine at the Pols site (Austria). The total investment volume amounts to 115 million Euros.

"With the construction of the new paper machine, we are primarily reacting to the increasing quality demands of the market while strengthening the Pols site at the same time", said Alfred Heinzel, CEO of the Heinzel Group.

Zellstoff Pols AG, a subsidiary of the Heinzel Group, is the largest producer of premium grade bleached long-fibre sulphate pulp in Central and South-Eastern Europe. In addition to pulp, its main product, Pols also produces premium grade bleached kraft paper under the STARKRAFT name. With the new paper machine, the site will increase its capacities to 80,000 tons per year.

Increasing demand for premium grade bleached kraft papers

The market for premium grade bleached kraft paper is growing continuously. By expanding paper production in Pols, the Heinzel Group is reacting to this development and strengthening its claim to the position of leading paper manufacturer in the kraft paper market segment in Europe.

Kurt Maier, CEO Zellstoff Pöls AG: "With this investment of 115 million Euros in our new paper machine, we will be able to significantly increase our market share in Europe. The expansion of our market pulp capacity towards the 500,000 ton benchmark — also referred to as "Pols 500+" — will remain unaffected."

Premium grade paper for heavy-duty applications

Kraft paper is the most hard-wearing paper type and is mostly used to produce carrier bags and pouches (for instance used in bakeries), premium grade medical packaging and food packaging. Werner Hartmann, Sales Director of Pols paper: "The kraft paper market segment is a highly specialised market with extremely high quality requirements that keep getting more stringent. Our goal is to strengthen our leadership position where quality is concerned — and the new paper machine will help us achieve this in a sustainable manner."

The construction of the new paper machine with its 5.4m width will take approximately 18 months. Construction will commence towards the middle of this year; the machine will most likely be commissioned towards the end of 2013.

SOURCE: Heinzel Group