Progroup develops plans for the Stockstadt paper mill, following acquisition from Sappi

Progroup AG have signed a contract to take over the site of Sappi Stockstadt GmbH’s paper and pulp mill.

The mill offers Progroup the opportunity to 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. 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.

Dr. Florian Herrmann, Head of the State Chancellery and Minister of State for Federal Affairs and Media, said, “This was the best teamwork! We’re delighted that we were able to work together to devise a good, long-term solution for the future. In a short space of time and in lots of personal conversations, we came up with good solutions with all the stakeholders on site. The standard of skilled workers in Bavaria’s Lower Main area and the 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.”

The site is set to be taken over in April 2024. The dismantling of the old facilities will then be planned and implemented. 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.

Bavaria’s Minister of Economic Affairs, Hubert Aiwanger, added, “I’m delighted about the decision made by Progroup AG. 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.”

Maximilian Heindl, CEO, Progroup AG, concluded, “The circular economy is a long-term process. From our demand for fresh water, which is more than 80% lower compared to our rivals in the industry, through to the energy concept; our aim is to use resources as sparingly as possible. 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 long time. We’re looking forward to developing shared opportunities for ourselves and the wider region at our future site in Stockstadt.”

Join our Newsletter

Sign up to our weekly newsletters for updates on articles, interviews and events

Sign up