Mondi Group Announced Divestment of Operating Russian Assets

SEATTLE (Scrap Monster): The Board of Directors of Mondi Group decided to divest its Russian assets.

The company press release noted that the divestment process is operationally and structurally complex and that it is being undertaken in an evolving political and regulatory environment. The structure of the transaction has not been finalized and that there is no certainty as to when the transaction will be completed, it said. All significant capital expenditure projects in Russia have been suspended, it added.

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The company operates Mondi Syktyvkar pulp and paper mill in the Komi Republic, which is ranked third in terms of revenue among all forest based industry companies in the country. It had produced 893, 800 tons of pulp, 485,000 tons of paper, 328,000 tons of containerboard and 144,000 tons of newsprint during the previous year. The facility employs around 4,500 people. In addition, it also operates a sawmill, a pulp mill, a power plant and a wastewater treatment plant in the country.

Earlier this year, Mondi Group had announced plans to invest Euro 300 million in Russian operations over the next three-year period. The company has invested more than Euro 1.6 billion in Russia over the past fifteen years.