Paper and packaging producer Mondi will acquire the Duino paper mill, near Trieste, in Italy, from the Burgo Group for €40-million.
The mill currently operates one paper machine producing lightweight coated mechanical paper, but Mondi intends to invest about €200-million to convert the machine to produce about 420 000 t/y of high-quality recycled containerboard.
“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," says Mondi CEO Andrew King.
Mondi points out that Duino is situated near two important export harbours, meaning it is ideally located to supply the group’s Corrugated Solutions plants in Central Europe and Turkey, as well as to serve the growing local Italian market.
"The containerboard machine will strengthen backward integration in corrugated packaging and provide us with security of supply to better serve our customers," the group adds.