Hinton Pulp Mill Modernization & Expansion
Hinton, Alberta, Canada
Mondi Group, a global leader in packaging and paper manufacturing, acquired a pulp mill in Hinton, Alberta, with the objective of establishing fully integrated operations in the Americas. Mondi sought to upgrade the facility to enhance productivity and sustainability performance, integrating it into its existing network of 10 paper bag plants in the region. The project required strategic planning to ensure the modernization efforts would align with Mondi’s commitment to sustainable production and ESG-driven principles.
The primary challenge was to facilitate a significant foreign direct investment that would modernize an existing industrial facility while delivering measurable economic and environmental benefits. This involved coordinating between Mondi Group and various Canadian governmental and regional partners to navigate policy programming, financial incentives, and regulatory requirements. The project needed to secure existing jobs, create new employment opportunities, and implement substantial sustainability upgrades, including enhanced power generation and energy efficiency, while planning for a potential future expansion with a new kraft paper machine.
Invest in Canada, in collaboration with partners including the Trade Commissioner Service Vienna, the Embassy of Canada to Austria, Invest Alberta, the City of Hinton, and Natural Resources Canada, provided comprehensive support to facilitate Mondi’s investment. This support included delivering detailed market information, establishing connections to key government and industry stakeholders, and offering guidance on federal support programs and financial incentives.
The coordinated effort enabled Mondi to complete the acquisition in February 2024 and commit to a multi-phase investment. The initial phase focuses on upgrading the Hinton Pulp Mill’s productivity and sustainability performance. A second phase, contingent on pre-engineering and permitting, involves a major expansion with a new integrated kraft paper machine. This solution ensures the retention and creation of jobs, improves the mill’s energy efficiency, and shortens the kraft paper supply chain, thereby reducing the carbon footprint of Mondi’s packaging products in the region.