Mondi will transform the mill to produce around 420,000 tonnes per annum of high-quality recycled containerboard for an estimated investment of around €200m
Mondi has signed an agreement to acquire the Duino mill. (Credit: Mondi)
UK-based packaging and paper group Mondi has signed an agreement to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of €40m.
The factory operates one paper machine to produce thin coated mechanical paper.
Mondi intends to modify the paper plant to produce around 420,000 tonnes of premium recycled containerboard annually for an estimated $200m in investment.
Duino is perfectly situated to supply the group’s export needs because it is close to two significant export ports, said Mondi.
It will offer the Group’s Corrugated Solutions plants in Central Europe and Turkey as well as serve the expanding local Italian market.
The containerboard machine will improve backward compatibility in corrugated packaging to better serve the firm’s customers.
Mondi CEO Andrew King said: “We are excited by this opportunity to invest in the growth of our packaging business, build on our integrated platform and broaden our geographic reach.”
The transaction is expected to complete in the second half of the year, subject to competition clearance and other closing conditions.