The 190-staffed, FSC and PEFC-certified mill annually manufactures 115,000 tonnes of fine paper for paperback books.

Arctic Paper said it would not rule out further consolidation and would continue to be active in the ongoing restructuring of the European fine paper industry.

Chief executive Olle Grundberg said: "Arctic Paper has grown organically in recent years. Our strategy is to grow further, both through restructuring with purchases of interesting European mills and through continued organic growth."

The company said it has been able to increase the price of its paper over the past year, but declined to comment further and instead said it has "followed the market movements".

Grundberg said: "Our industry has had a difficult seven or eight years and profitability is generally weak, but there are reasons for optimism.

"We have been able to increase the price of fine paper, if only marginally, and the capacity balance has improved through the closure of some mills."

While Mochenwangen Papier's main market is in Germany, products will also be sold in other European countries, including the UK. The mill's seller is German company Golzern Holding, which has owned it since 2002.

Other Arctic Paper mills include Swedish-based Arctic Paper Munkedals and Arctic Paper Håfreströms, as well as Arctic Paper Kostrzyn S.A. in Poland.