RUSSIA – Sustainable packaging and paper manufacturer Mondi has completed the sale of its three Russian packaging converting operations to Russian packaging producer Gotek Group.
The latest announcement comes months after the UK-based packaging company signed an initial agreement with Gotek to sell some of its packaging converting operations, including one corrugated solutions plant and two consumer flexibles plants, in Russia.
Mondi has received net proceeds of €30.4 million (US$ 33.03m) from this disposal into its Austrian bank account.
The net proceeds from the sale of all Mondi’s Russian assets will be distributed to shareholders as soon as reasonably practicable following receipt, once the company’s exit from Russia has been completed.
The proposed disposal of Mondi Syktyvkar – Mondi’s most significant facility in Russia – is not connected with this disposal and the company’s board says it remains committed to divesting Syktyvkar.
Last month, Mondi decided to withdraw from an agreement to sell its Syktyvkar mill and two affiliated entities in Russia to Augment Investments, an investment vehicle majority owned by Russian billionaire Viktor Kharitonin, citing a “lack of progress”. This deal was valued at approximately Rbs95bn.
The British company said its board is still committed to divesting the Syktyvkar unit and is currently considering all the available alternatives to divest the facility.
Last month, the packaging company invested €16 million (US$17.40m) into its Krapkowice plant, dedicated to the production of its MailerBAGs, in a bid to meet the increasing demand for sustainability-minded e-commerce packaging.
MailerBAGs are designed to be a durable, easy-to-open and close, puncture- and tear-resistant solution for product delivery and returns.
The kraft paper bags, said to be recyclable in conventional European recycling streams, are available in a range of sizes and aspire to save both space and weight in transit, as well as to provide customers with cost-effective and highly printable packaging.
Based in Poland, the plant is located to distribute MailerBAGs across Europe. The investment is set to contribute towards a new production line and double the bags’ production capacity this year.
In the same month, Mondi, in collaboration with Baumit rolled out a new water-soluble paper packaging solution called SolmixBag, for use in the global construction industry.
SolmixBag is a one-ply paper bag created to store and transport dry construction materials such as cement and dry mix mortar products.
It’s designed to dissolve when getting in contact with water during the mixing process – the fiber of the packaging simply integrates with the product as it is mixed.
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