Mondi invests US$390.6M in new kraft paper machine at Steti Mill

CZECH REPUBLIC – Paper and packaging company, Mondi has announced the approval of a US$390.6 million (400m) investment in a new paper machine at its flagship Steti mill in the Czech Republic.

The investment is part of the company’s expansionary capital investment program, under which it plans to invest €1bn to expedite its growth in sustainable packaging and strengthen its market position.

The new paper machine will have an annual production capacity of 210,000 tonnes of sack kraft paper to support Mondi‘s Paper Bags business.

It will also increase the company’s production across the rest of its kraft paper portfolio while bolstering its position in speciality 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.

In its third-quarter trading update released earlier this week, the company said that start-up for the new machine will begin in 2025, with full production scheduled for 2027.

The company reported underlying earnings before interest, tax, depreciation and amortization (EBITDA) of US$443.60 million (€450m), excluding its Russian operations, for the quarter.

Mondi flexible packaging CEO Thomas Ott said: “As a global leader in innovative and sustainable packaging solutions, we are pleased to announce the approval of such an important investment.

“Sustainability is at the heart of all we do and this is a big step forward on our journey to making all our packaging solutions reusable, recyclable or compostable, which is one of our Mondi Action Plan 2030 (MAP2030) commitments.”

Meanwhile, Mondi is also building a new R&D center at its Steinfeld site in Germany to drive innovation in sustainable plastic and fiber packaging materials.

Set to cost US$5 million, Mondi has already commenced construction on the center, which is due for completion in late 2023.

The facility will support Mondi customers by helping them to develop sustainable packaging products, including pilot lines for both plastic and paper-based products, the company said.

Some of the site’s capabilities will include coated products, film extrusion, and printing to filling lines for multiple products.

It will also have an analytical laboratory and a ‘customer experience centre’ to meet and collaborate with customers.

Earlier last month, the company also partnered with German machine producer Heiber + Schröder to develop eComPack, an automated packaging machine for e-commerce.

The machine combines Heiber + Schröder’s knowledge of paper and board packaging automation with Mondi’s proprietary packaging solutions.

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