Mondi plc has agreed to acquire the Duino mill near Trieste (Italy) from the Burgo Group for a total consideration of EUR40 (USD40.67) million. The mill currently operates one paper machine producing lightweight coated mechanical paper. Mondi plans to convert this paper machine to produce around 420,000 tonnes per annum of high-quality recycled containerboard for an estimated investment of around EUR200 (USD203.36) million.
Close to two important export harbours, Duino is ideally located to supply the Group’s Corrugated Solutions plants in Central Europe and Turkey as well as to serve the growing local Italian market. The containerboard machine will strengthen backward integration in corrugated packaging and provides security of supply to better serve Mondi’s customers.
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.Andrew King, Group CEO of Mondi
The acquisition is subject to competition clearance and other closing conditions and completion is expected in the second half of the year.