Vienna, Austria, 10 May 2012 -- Heinzel Group will build a new paper machine for bleached kraft paper at its Pöls site in Austria, increasing the plant's paper output capacity to 80,000 tons/year. The new PM will have a width of 5.4 m. Construction is to be started toward the middle of 2012. Capital expenditure for the new PM, which is to be commissioned at the end of 2013, is expected to total EUR 115 million.

The company said that the market for beached kraft paper is growing continuously, with quality requirements becoming more stringent. Heinzel is striving for an increased share in the European market for bleached kraft paper, said Kurt Maier, CEO of Zellstoff Pöls. The expansion of the company's market pulp capacity toward the 500,000 tons/year mark ("Pöls 500+") will, however, remain unaffected, he said.

Zellstoff Pöls, part of the Austrian Heinzel Group, is a major producer of elemental chlorine-free bleached softwood kraft pulp with an annual output of approximately 400,000 tons. Part of the pulp is converted into bleached kraft paper for various purposes, such as bags and pouches, medical packaging, and food packaging. So far Pöls has been producing 40-140 g/m² paper on a single, flexible machine with an annual capacity of 14,000 tons/year. Zellstoff Pöls employs 350 people and reports annual sales of about EUR 200 million.