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, a pulp mill and forestry project 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 required for the project. Heinzel will own 25% of Paracel’s shares when the project is completed.

Paracel plans to produce 1.8 million tons of pulp a year in Concepción, in northern Paraguay, with forestry assets on more than 180,000 hectares of owned land. Since the start of the project, at the end of 2018, Paracel has reached important milestones: it has already forested more than 16,000 hectares, it has completed the design of the pulp mill, it has received the construction permit for the industrial plant and it has completed the evaluations of environmental and social impact required. 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 sequestration effect of planting more than 100 million trees.

The 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 specializing in emerging markets. “We are very happy to join this innovative project for sustainable pulp and forestry production in Paraguay,” says Heinzel Group CEO Sebastian Heinzel. “Paracel will not only supply the pulp 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 industry knowledge and long experience in the global pulp markets to make this project a success.»

With his investment, Heinzel joins a group of Paraguayan business families led by Grupo Zapag, founder and largest shareholder of Paracel. “We couldn’t have found a better partner than Heinzel to bring this vision of Paraguay’s future to life,” says Blas Zapag, President of Grupo Zapag. Per Olofsson, representative of Paracel co-founder and project promoter, Girindus Group, from Sweden, adds: “We are now ready to take Paracel to the next level. Heinzel rounds out the world-class team of seasoned professionals we have been building.”

About HEINZEL GROUP

At four sites in Europe, the Heinzel Group produces market pulp, packaging paper and magazine paper. It trades pulp, paper, recycled fiber and packaging solutions. With its production companies Zellstoff Pöls, Laakirchen Papier, Raubling Papier and Estonian Cell, the Heinzel Group is one of the largest pulp and paper producers in Central and Eastern Europe. The three trading companies of the Heinzel Group – Heinzelsales, Europapier and Bunzl&Biach – respond flexibly to the various 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 Zapag Group

Grupo Zapag 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 business with a successful track record of forestry investments and project development in the pulp industry. Some examples of Girindus investments are Paracel, Renewcell AB and SilviPar.