Mondi, a global supplier of packaging and paper, has successfully completed the acquisition of the Duino paper mill in Italy from the Burgo Group. The deal, valued at 40 million euros ($43.3 million), marks Mondi's entry into the Italian market.
The Duino paper mill, situated near Trieste in northeast Italy, currently operates a paper machine that produces lightweight coated mechanical paper. Mondi has ambitious plans to invest 200 million euros ($216 million) in converting the existing machine into a state-of-the-art containerboard machine. This conversion will enable the production of 420,000 metric tons of recycled containerboard annually.
The decision to acquire the Duino facility was made in line with Mondi's strategic growth plans for its packaging business. CEO Andrew King expressed excitement about the investment, emphasizing the opportunity to strengthen their integrated platform and expand their geographical presence.
The location of the Duino facility, in close proximity to two export harbors, offers strategic advantages. Mondi intends to utilize this advantageous position to supply its Corrugated Solutions plants in central Europe and Turkey. Additionally, it aims to meet the rising demand in the local Italian market. By enhancing backward integration in corrugated packaging, the new containerboard machine will improve supply reliability, enabling Mondi to better serve its customers.
The anticipated launch of the containerboard machine is scheduled for 2025. This milestone will mark a significant step forward for Mondi, allowing them to further consolidate their position as a leading global player in the packaging and paper industry.
