Mondi said that it has completed the acquisition of the Duino paper mill near Trieste (Italy) from the Burgo Group for a total consideration of EUR 40 million.
Mondi plans to invest EUR 200 million to convert the mill's paper machine from the production of lightweight coated mechanical paper to high-quality recycled containerboard. After the conversion, the machine will have an annual capacity of 420,000 tons.
Mondi noted that the Duino mill is located close to two important export harbors, which creates an efficient logistics situation when transporting containerboard to the Group's corrugated plants in Central Europe and Turkey as well as serving the growing local Italian market.
"We are excited to welcome Duino mill to the Mondi Group and the opportunity this provides to grow our packaging business," said Markus Gärtner, CEO Mondi Corrugated Packaging. "We are committed to the long-term future of the mill and recognise its important role in the community and contribution to the local economy."
TAPPI
http://www.tappi.org/