Heinzel Group Reports 2023 Results; May Discontinue Operations at Raubling Papier

April 12, 2024 - Heinzel Group today announced its performance for 2023, showcasing resilience in a complex market environment. The company reports a healthy EUR 135 million of operating cash flow and a simultaneous 6% reduction in CO2 emissions compared to the previous year, underscoring its dedication to both economic performance and sustainability.

Heinzel Group achieved net sales of EUR 2,214.9 million in 2023, with an EBITDA of EUR 116.5 million.

Notable successes of 2023 include the startup of unbleached pulp production at Heinzel Pöls as well as the preparation of the integration of Steyrermühl operations in Austria, which was acquired from UPM on January 1, 2024 and has become part of Heinzel Group.

The Steyrermühl mill has about 400 employees and the capacity to produce 150,000 metric tons per year (planned) of kraft paper. Heinzel Group noted that the rebuilding of PM6 machine at the mill remains on track, with production of kraft papers slated to begin in May.

"In 2023 we have demonstrated resilience in challenging market conditions, especially in the containerboard segment, and we have laid the groundworks for future successes," said Sebastian Heinzel, CEO of Heinzel Group.

Raubling Papier

Heinzel Group said its subsidiary, Raubling Papier GmbH in Germany, "continues to be characterized by a persistently difficult market environment and challenging economic conditions in 2024 and the management of Raubling Papier has now decided to enter into discussions with the local works council about a possible discontinuation of operations to develop socially responsible solutions for the 165 employees potentially affected."

Raubling Papier has two paper machines with the combined capacity to produce 210,000 tonnes per year of containerboard.

Heinzel Group said its 2023 results already include an impairment for the Raubling plant.

Heinzel Group has five production sites that produce market pulp, packaging paper and magazine paper — Pöls, Laakirchen and Steyrermühl in Austria; Raubling, Germany; and Kunda, Estonia. The Group also trades in pulp, paper, recycled fiber, and packaging solutions.

SOURCE: Heinzel Group