Dual-listed Mondi will sell its Raubling paper mill, in Bavaria, Germany, to the Heinzel Group for €25-million.
Mondi, which said the deal enabled a narrower focus on the development of its core containerboard operations, would conclude the transaction upon receiving competition clearance by the end of this year.
The Raubling-based recycled containerboard mill and related recycling operations, established in 1908 and taken over by Mondi in 2004, was a mid-sized mill, with a potential capacity to produce 220 000 t of recycled containerboard and kraftliner substitute.
The mill, which employed around 150 people, had transitioned over the past two years into a high-quality niche producer, selling most of its products to customers within Germany, including internal sales to Mondi Corrugators. It also served customers in Italy, Austria, Poland and the Benelux.