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Packaging and paper manufacturer Mondi has agreed to acquire the 250,000 tonne per annum Hinton Pulp mill in Alberta, Canada, from West Fraser Timber for $5 million. Mondi will enter into a long-term partnership with West Fraser as part of the transaction to access local fibre from a well-established wood basket. The packaging manufacturer plans to invest €400 million in the expansion of Hinton, primarily for a new 200,000 tonne per annum kraft paper machine, anticipated to be operational from the second half of 2027. Mondi’s acquisition of the mill and investment in the paper machine, will “fully integrate operations in the Americas and enable Mondi to secure the long-term supply of high-quality, cost-competitive kraft paper," the company said, into its network of ten paper bag plants in the region. The kraft paper produced at Hinton will have the “highest quality and strength parameters,” in order to meet customer requirements for sustainable packaging solutions. Andrew King, Mondi Group CEO, said: "Strategically, we are focused on investing to support the growing market demand for our sustainable packaging products, while delivering attractive mid-teen returns through cycle. The acquisition of Hinton is an excellent opportunity for us to secure locally produced kraft paper for our bags customers, helping to meet the current and anticipated future growth in demand for industrial and mailer bags in the Americas. This acquisition will also enable us to further strengthen our position as the global market leader in the production of kraft paper and paper bags." He added: "We are delighted to be making this investment in Canada and look forward to working with Hinton colleagues, West Fraser as a long-term partner, and other local stakeholders towards improving the mill’s environmental footprint and securing its sustainable future." The acquisition is subject to customary regulatory clearance and is expected to close towards the end of this year.