Mondi invests in fiber recycling system in Poland

Mondi plc, a global producer of paper and paperboard based in the United Kingdom, says it has completed a previously announced upgrade project at its containerboard mill in Świecie, Poland.

That upgrade increases kraftliner production capacity at the plant by 55,000 metric tons annually and includes new equipment on the mill’s recycled-content fiber line.

Last week, Mondi also announced entering into an agreement to acquire 11 corrugated converting, solid board and box making operations from Germany-based Schumacher Packaging.

In Poland, Mondi says several portions of its $103 million investment were tied to “environmental performance [to] strengthen the mill’s sustainability profile.”

“The upgrade comprises an extensive rebuild of paper machines PM2 and PM5, a new anaerobic treatment plant including an integrated cooling system, and upgrades to the pulp mill, the recycled fiber line and the energy recovery system,” states Mondi.

“The completion of this project marks a milestone for Mondi Świecie, enabling us to advance our operations and deliver even higher-quality paper to our customers,” says Tomasz Katewicz, managing director of Mondi Świecie. “I am proud of our team’s exceptional skills and commitment, which were crucial in achieving these goals.”

The Schumacher acquisition involves downstream facilities located in Germany, the Benelux countries and the United Kingdom, says Mondi.

The acquisition will expand Mondi’s corrugated footprint in Western Europe and add what it calls complementary fiber-based products focused on e-commerce and fast moving consumer goods (FMCG), according to the firm.

Mondi says in 2023, Schumacher Packaging’s Western European packaging assets generated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of nearly $72 million.

“Our focus is on investing to meet the growing market demand for sustainable packaging while driving value for our stakeholders,” says Andrew King, Mondi Group CEO. “This acquisition significantly increases our corrugated converting capacity, extends our reach across Western Europe and offers strong downstream integration opportunities while broadening our customer offering with a complementary fiber-based product range.”

The transaction, which is subject to regulatory approvals, is expected to close in the first half of next year.

According to Mondi, Bjoern Schumacher and Hendrik Schumacher, co-CEOs of Schumacher Packaging, will be retained as a strategic adviser and as chief operating officer for solid board, respectively.