Grupo Gondi Ramping Up New Recycled Content Containerboard Mill

SEATTLE (Scrap Monster): Mexico City-headquartered Grupo Gondi announced that the ramp-up of its new recycled content containerboard mill in Monterrey, Mexico is under progress. The mill, with an estimated capacity of 400,000 tons per year, has already produced its first rolls in the month of January this year. As per Fastmarkets RISI, the first reel was produced on 5^th January, 2021.

According to the company, it is currently focusing its efforts on making final adjustments on the new paper machine. The first paper rolls should reach the market by end of the first quarter. The company aims to get close to full capacity by the fourth quarter of 2021, said Eduardo Posada, CEO, Grupo Mondi.

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The company cites increased demand and lack of supply of containerboard in the country. Mexico witnessed rapid acceleration in corrugated box demand during the second half of the previous year, following the economic slowdown during H1 on account of Covid-19 pandemic. The strong domestic sales within the U.S. limited Mexican containerboard imports from that country, thus limiting supply.

Grupo Gondi plans to sell much of the board produced by the mill, within Mexico. However, it also plans exporting the products to the U.S., South America and even China.