ProGroup to Take Over Sappi Stockstadt Mill; Convert Production to Containerboard

ProGroup's intention is to develop a concept so that the company can use a closed material loop at Stockstadt Mill to manufacture containerboard in a sustainable and innovative way.

Nov. 6, 2023 - ProGroup announced that an agreement has been signed with Sappi whereby ProGroup will take over Sappi's Stockstadt pulp and paper mill in Germany.

Terms of the deal were not disclosed.

The Stockstadt Mill is an integrated pulp and paper mill with a production capacity of 220,000 tpy of coated and uncoated woodfree paper and 145,000 tpy of pulp (for internal use).

In 2022, Sappi put together a deal to sell three of its European mills, including Stockstadt, Maastricht in the Netherlands, and the Kirkniemi Mill in Finland to Aurelius Group. However, in April of 2023, Sappi announced that the deal had "...not materialized within the agreed timeframe of the contractual agreement and therefore the agreement has lapsed."

In response, Sappi on July 6, 2023, announced the start of a consultation process on the possible closure of Stockstadt Mill, followed by an announcement in October that an agreement was signed for the sale of the site with closure to be completed during the first calendar quarter of 2024.

According to ProGroup, the paper mill provides "the opportunity to design another site for the circular economy. The intention is to develop a concept step by step so that the company can use a closed material loop to manufacture containerboard in a sustainable and innovative way."

In a press release, ProGroup said, "The site is set to be taken over in April 2024. The dismantling of the old facilities will then be planned and implemented. This step is needed to create space to implement the future site concept and will be completed during the course of 2025. Alongside this, specific plans and technical reports will be drawn up and will serve as the basis for permit applications and forthcoming investments."

Progroup AG, located in Landau, Germany, is one of the leading manufacturers of containerboard and corrugated board in Europe. Progroup operates production sites in six countries in Central Europe. These currently include three paper mills, twelve corrugated sheetfeeder plants, a logistics company and a waste-to-energy power plant.

SOURCES: ProGroup, and past news releases from Sappi