Mondi completes acquisition of Italian paper mill

United Kingdom-based global paper and packaging supplier Mondi has completed the acquisition of the Duino paper mill in Italy from Burgo Group in a deal worth 40 million euros ($43.3 million).

The facility, located near Trieste in northeast Italy, operates one paper machine that produces lightweight coated mechanical paper. Mondi plans to invest 200 million euros ($216 million) to convert the machine into a containerboard machine that will be capable of producing 420,000 metric tons of recycled containerboard per year.

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Mondi previously announced an agreement to purchase the facility in August of last year, at which time 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 Duino facility sits near two export harbors, and Mondi says its position is ideally located to supply its Corrugated Solutions plants in central Europe and Turkey as well as serve the growing local Italian market. “The containerboard machine will strengthen backward integration in corrugated packaging and provide us with security of supply to better serve our customers,” Mondi says.

The containerboard machine is slated to start up in 2025.