The three packaging converting operations, which include a corrugated solutions plant and two consumer flexibles plants, will be sold to Russia-based Gotek Group
Mondi to sell three Russian packaging converting operations for $24.9m. (Credit: Mondi)
Mondi, a UK-based paper and packaging firm, has agreed to divest three Russian packaging converting operations to Gotek Group for RUB1.6bn ($24.9m), payable in cash.
The three packaging converting operations include a corrugated solutions plant and two consumer flexible plants. These plants produce a range of packaging solutions for the domestic Russian market.
Mondi stated that the loss on the disposal is expected to be in the range of €70-80m at the current exchange rate.
Gotek Group is a packaging producer based in Moscow, Russia and employs around 2,200 employees across its business.
The deal is anticipated to be completed in the first half of 2023, subject to the approval of the Government SubCommission for the Control of Foreign Investments of the Russian Federation and usual antitrust approvals.
Mondi said that there can be no assurance that the disposal will be finished, though, because it is being carried out in a political and regulatory climate that is constantly changing.
The sale comes after Mondi declared in May this year that after weighing all of its alternatives regarding the group’s holdings in Russia, it had decided to sell its Russian assets.
According to the packaging firm, the sale is unrelated to the proposed sale of Mondi Syktyvkar, which has not yet received the necessary antitrust licences and approval from the Russian Federation’s Government Sub-Commission for the Control of Foreign Investments.
In a separate development, Mondi has collaborated with FRESH!PACKING to develop a new recyclable consumer cooler bag. The Fresh!Bag is intended to protect and transport chilled or frozen goods home by consumers.
Made entirely from Mondi’s durable kraft paper, the bag is certified as fully recyclable in existing European paper waste streams. The bag also has high stretchability to allow easy sewing of the different plies to create a strong bag structure.
Mondi Speciality Kraft Paper international sales manager Alexander Baars said: “Fresh!Bag provides a genuinely exciting opportunity for retailers; it responds to the consumer demand for more sustainable packaging, while delivering convenience and durability for frozen and chilled goods.”