Part of the group’s €1bn expansionary capital investment programme, the financing is intended to expedite growth in sustainable packaging and further strengthen Mondi’s position in the market

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Mondi has announced an investment of €400m in its flagship Štětí mill in the Czech Republic. (Credit: Mondi)

Packaging and paper firm Mondi has announced an investment of €400m in a new paper machine at its flagship Štětí mill in the Czech Republic.

Part of the group’s €1bn expansionary capital investment programme, the financing is intended to expedite growth in sustainable packaging and further strengthen Mondi’s position in the market.

The investment will help Mondi meet the rising demand for paper-based flexible packaging, which is being driven by an increase in e-commerce and sustainable packaging.

It will also help to expand the firm’s range of advanced, environmentally-friendly packaging and paper solutions.

Due to the advantages of a vertically integrated value chain, the new machine will manufacture about 210,000 tonnes of sack kraft paper annually to serve the Paper Bags business, the firm said.

Mondi will be able to improve its position in speciality kraft paper across a wide range of applications, including functional barrier materials, and optimise production across the whole kraft paper portfolio.

Mondi Flexible Packaging CEO Thomas Ott said: “As a global leader in innovative and sustainable packaging solutions, we are pleased to announce the approval of such an important investment.

“Sustainability is at the heart of all we do and this is a big step forward on our journey to making all our packaging solutions reusable, recyclable or compostable, which is one of our Mondi Action Plan 2030 (MAP2030) commitments.”

The new kraft paper machine at its Štětí mill in the Czech Republic is scheduled to begin operations in 2025, with a complete production ramp-up anticipated in 2027.

Last month, the packaging company partnered with German machine producer Heiber + Schröder to launch eComPack for automated packaging of the former’s EnvelopeMailer for eCommerce.