Mondi invests in fiber recycling system in Poland

Mondi plc, a global producer of paper and paperboard based in Weybridge, England, 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 entered 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,” Mondi says.

“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.

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

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,” Mondi Group CEO Andrew King says. “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.

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.