VANCOUVER — West Fraser Timber Co. Ltd. has signed a deal to sell its unbleached softwood kraft pulp mill in Hinton, Alta., to Mondi Group, an integrated packaging and paper company.

Mondi says it is paying US$5 million for the mill and plans invest 400 million euros to expand the facility.

It plans to add a 200,000-tonne-per-year kraft paper machine that it expects to be operational in the second half of 2027.

West Fraser will continue to supply fibre to the Hinton mill under a long-term contract.

Mondi Group chief executive officer Andrew King says the acquisition is an excellent opportunity for the company to secure locally produced kraft paper for its customers.

The deal is subject to regulatory approval and is expected to close towards the end of this year.