Representatives of Germany-based Progroup AG and Sappi Stockstadt GmbH have signed a contract for Progoup to take over the paper mill site in Stockstadt, Germany, and convert the mill’s production from graphic paper to recycled-content containerboard.

Earlier this year, Brussels-based Sappi engaged in a consultation process on the possible closure of the Stockstadt Mill, which in October resulted in a decision to close the mill by the first quarter of 2024.

Instead, the privately held Progroup has purchased the mill for an as-yet undisclosed amount and says it will “design another site for the circular economy.”

“The intention is to develop a concept step by step so that the company can use a closed material loop to manufacture containerboard in a sustainable and innovative way,” Progroup says regarding its use of old corrugated containers (OCC) and other recycled content.

“The circular economy is a long-term process. From our demand for fresh water, which is more than 80 percent lower compared to our rivals in the industry, through to the energy concept: Our aim is to use resources as sparingly as possible,” Progroup CEO Maximilian Heindl adds. “This means that the planning process will take time. But it also means that we’re committed to staying here in Bavaria’s Lower Main region for a very long time. We’re looking forward to developing shared opportunities for ourselves and the wider region at our future site in Stockstadt.”

Progroup says it has received pledges of regional government support to undertake the project, saying, “The local market town, district and the Free State of Bavaria strongly supported the negotiations. The establishment of the site was overseen by Invest in Bavaria, the state government’s business development agency.”

Remarks Dr. Florian Herrmann, , “This was the best teamwork,” says Dr. Florian Herrmann, head of the state chancellery and minister of state for federal affairs and media. “We’re delighted that we were able to work together to devise a good, long-term solution for the future.

“In a very short space of time and in lots of personal conversations, we came up with good solutions with all the stakeholders on site. The excellent standard of skilled workers in Bavaria’s Lower Main area and the outstanding infrastructure in the Rhine-Main region are crucial factors that influenced the decision to choose this site and will also prove their worth in the future.”

According to Progroup, the site is set to be taken over in April 2024 followed by the plan to dismantle the old facilities. This step is needed to create space to implement the future site concept and will be completed during the course of 2025. Alongside this, specific plans and technical reports will be drawn up and will serve as the basis for permit applications and forthcoming investments, the company adds.

“I’m really delighted about the decision made by Progroup AG,” Bavaria Minister of Economic Affairs Hubert Aiwanger says. “Bavaria is an extremely attractive location for companies that want to operate in the circular economy. This is why Stockstadt is a logical choice. The Ministry of Economic Affairs has worked successfully through Invest in Bavaria and taken a great deal of care to support the project.”