LEIPA Looking Into Acquisition of UPM Schwedt Paper Mill
LEIPA plans to buy UPM Schwedt newsprint mill and convert the mill's paper machine for the production of white top testliner.
Nov. 17, 2015 - LEIPA Georg Leinfelder and UPM have signed a Memorandum of Understanding for the sale of UPM Schwedt mill in Germany to LEIPA.
Terms of the deal were not disclosed.
Currently, UPM Schwedt mill employs 250 people and has the capacity to produce 280,000 tons per year of newsprint.
Upon closure of the proposed deal, LEIPA said it would immediately begin a paper machine rebuild project to convert the mill's newsprint machine for the production of white top testliner.
Production capacity of the machine after the conversion project would be about 450,000 tons per year, which would bring LEIPA's overall production capacity of white top and white coated testliner to about 700,000 tpy.
LEIPA said that it intends to continue all employment relations with the current employees of the Schwedt mill should the acquisition be successful.
LEIPA expects to close the deal, which remains subject to due diligence, as early as the first quarter of 2016.
SOURCE: LEIPA Georg Leinfelder GmbH