ITALY – Paper and packaging company, Mondi has completed the acquisition of the Duino paper mill in Italy from Burgo Group in a deal work €40 million ($43.3 million).
Mondi and Burgo confirmed the finalization of the deal that was first announced in August last year.
“We are excited by this opportunity to invest in the growth of our packaging business, build on our integrated platform and broaden our geographic reach,” said Mondi CEO Andrew King at the time.
Following the acquisition, Mondi plans to invest around US$216.97 million (€200m) to convert this machine into a containerboard machine to produce quality recycled containerboard.
The converted facility will be capable of producing around 420,000t of recycled containerboard a year.
“The mill is ideally located to the source paper for recycling, supply Mondi’s corrugated solutions plants in Central Europe and Turkey as well as to serve the growing local Italian market,” says Mondi.
The Duino facility sits near two export harbors, and Mondi says its position is ideally located to supply its Corrugated Solutions plants in central Europe and Turkey as well as serve the growing local Italian market.
“The containerboard machine will strengthen backward integration in corrugated packaging and provide us with the security of supply to better serve our customers,” adds Mondi.
Based in the UK, Mondi supplies packaging and paper products to companies worldwide, reporting revenues of US$ 7.59 billion (€7.0 billion) in 2021.
Meanwhile, in October last year, the company approved a €400 million (US$433.94 m) investment to develop a paper machine at its flagship mill in Štětí, Czech Republic.
The investment is part of the company’s expansionary capital investment program, under which it plans to invest €1billion to expedite its growth in sustainable packaging and strengthen its market position.
According to the company, the new paper machine has an annual production capacity of 210,000 tonnes of sack kraft paper to support Mondi‘s Paper Bags business.
In addition, Mondi said that the paper machine will increase the company’s production across the rest of its kraft paper portfolio while bolstering its position in specialty kraft paper.
Mondi said the investment will address the growing demand for paper-based flexible packaging and strengthen its growth in e-commerce and sustainable packaging.
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