Mondi has agreed to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of EUR 40 million. The mill currently operates one paper machine producing lightweight coated mechanical paper. Mondi plans to convert this paper machine to produce around 420,000 tonnes per year of high-quality recycled containerboard for an estimated investment of around EUR 200 million.
Close to two important export harbors, Duino is ideally located to supply the Mondi Group's Corrugated Solutions plants in Central Europe and Turkey as well as to serve the growing local Italian market.
According to Mondi, the containerboard machine will strengthen backward integration in the company's Corrugated Packaging segment and provide security of supply to better serve customers.
"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 Andrew King, Group CEO of Mondi."
The acquisition is subject to competition clearance and other closing conditions and completion is expected in the second half of the year.
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