Heinzel Group becomes strategic investor in the construction project of Paraguay's first pulp mill
Heinzel Group becomes strategic investor in the construction project of Paraguay's first pulp mill
Vienna and Asunción, July 25, 2022. Heinzel Holding GmbH and Paracel S.A. jointly announce that Heinzel has reached an investment agreement to become the strategic equity investor in Paracel, an afforestation project and pulp mill in Paraguay, South America. Paracel has received capital commitments from a group of Paraguayan and European business families, and Heinzel's investment completes the strategic capital needed for the project. Heinzel will hold 25% of Paracel's shares when the project is completed.
Paracel plans to produce 1.8 million tons of cellulose per year in Concepción, in the north of Paraguay, with forest assets of more than 180,000 hectares of its own land. Since the beginning of the project, at the end of 2018, Paracel has achieved important milestones: it has already forested more than 16,000 hectares, completed the design of the pulp mill, received the construction permit for the industrial plant and completed the required environmental and social impact assessments. It has started important works on the site of the industrial plant and has launched social programs and projects for the conservation of native forests. As one of the largest afforestation projects in the world, it has also completed documentation on the carbon capture effect of planting more than one hundred million trees.
Heinzel Group, headquartered in Vienna (Austria), is a leader in the pulp and paper industry, with production sites in Austria, Germany and Estonia and a global sales network specialized in emerging markets. “We are very happy to join this innovative project for sustainable forest and pulp production in Paraguay,” says the CEO of the Heinzel Group, Sebastian Heinzel. “Paracel will not only supply cellulose for the products of the future, it is already participating in the fight against global warming and actively working to increase biodiversity in the region. We will bring our industrial knowledge and our long experience in the global pulp markets to make this project successful.”
With his investment, Heinzel joins a group of Paraguayan business families led by the Zapag Group, founder and largest shareholder of Paracel. “We couldn't have found a better partner than Heinzel to make this vision of Paraguay's future a reality,” says Blas Zapag, President of the Zapag Group. Per Olofsson, representative of the co-founder of Paracel and promoter of the project, Girindus Group, from Sweden, adds: “We are now ready to take Paracel to the next level. Heinzel completes the team of experienced, world-class professionals that we have been building.”
About Heinzel Group
In four centers in Europe, the Heinzel Group produces cellulose for the market, paper for packaging and paper for magazines. Trade in cellulose, paper, recycled fiber and packaging solutions. With its production companies Zellstoff Pöls, Laakirchen Papier, Raubling Papier and Estonian Cell, Heinzel Group is one of the most important pulp and paper producers in Central and Eastern Europe. The three Heinzel Group trading companies - Heinzelsales, Europapier and Bunzl&Biach - respond flexibly to the diverse requirements of international customers. The group's success is based on its entrepreneurial spirit and its commitment to long-term partnerships. Sustainability is at the heart of all Heinzel Group activities
About the Zapag Group
The Zapag Group is a leading Paraguayan family conglomerate in the fuel distribution, ethanol production, river logistics and real estate sectors. The Group operates in Paraguay, Uruguay, Bolivia and Argentina with brands such as Copetrol, Petrobras Paraguay and Axion Uruguay.
About the Girindus Group
The Girindus Group is a Swedish family company with a successful history of investing in forestry and developing projects in the pulp industry. Examples of Girindus investments include Paracel, Renewcell AB and SilviPar.
