SEATTLE (Scrap Monster): Mondi plc announced its decision to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of €40 million. The acquisition is subject to clearance by competition authorities and other customary closing conditions and is expected to be completed during H2 this year.
The mill currently operates one paper machine that produces high quality lightweight coated mechanical paper. Mondi plans to invest approximately €200 million towards converting the existing paper machine to produce around 420,000 tonnes per annum of high-quality recycled containerboard.
The proximity of the Duino mill helps it to supply the Group’s Corrugated Solutions plants in Central Europe and Turkey as well as to serve the growing regional Italian market. The proposed new containerboard machine will strengthen backward integration in Corrugated Packaging and provide it with supply security to ensure better services to its customers, noted the press release.
Andrew King, Group CEO, Mondi said that the company is excited by the opportunity to invest in the growth of its packaging business. Furthermore, it will build on its integrated platform and broaden its geographic reach, he added.