Mondi to expand overall production and warehouse capacity, upgrade automation and internal material flows across its central and eastern European Corrugated Solutions plant network; the €185M investment to help meet rising demand

March 23, 2022 (press release) –

• €185 million across the Corrugated Solutions plant network and €95 million at Mondi Swiecie containerboard mill invested to expand overall production and warehouse capacity and upgrade automation and internal material flows to serve customers more efficiently with shortened lead times.
• Investments geared towards meeting the rising demand for sustainable packaging solutions within the FMCG, eCommerce and industrial market sectors
• Production processes optimised for responsible use of resources, minimising the environmental footprint in line with MAP2030 commitments 
• The expansion and upgrade of Mondi’s Kuopio semi-chemical fluting mill with a total investment of €125 million remains on track

Mondi, a global leader in packaging and paper, is investing €280 million in Corrugated Packaging operations across four countries to boost production and to serve customers more efficiently. This includes around €185 million across its central and eastern European Corrugated Solutions plant network and €95 million at Mondi Świecie’s containerboard mill in Poland - demonstrating Mondi’s commitment to its customers, its people, and to responsible and sustainable production. These investments together represent an important part of Mondi’s announced €1 billion in expansionary capital investment projects this year to accelerate growth in sustainable packaging.

European demand for corrugated packaging is expected to grow by 2 - 4% per year in the medium term as customers increasingly insist on more sustainable packaging solutions. To meet this growing demand, Mondi is investing in its ability to supply the growing FMCG, eCommerce, and industrial markets from resource-efficient plants and equipment.

“Sustainability is at the heart of Mondi’s strategy. Ongoing investment in our Corrugated Packaging business supports our MAP2030 commitments around circular-driven packaging and paper solutions, created by empowered people taking action on climate. Together with our suppliers, we are further optimising our production processes to use resources more responsibly, minimise our environmental footprint and contribute to a better world. At the same time, customers benefit from enhanced product quality and shorter lead times, while our employees enjoy exciting job opportunities operating state-of-the-art machinery with world-class safety standards.” says Markus Gärtner, CEO Corrugated Packaging at Mondi.

Some highlights of the investment programme:

• The upgrade of Mondi Świecie’s containerboard mill, comprising 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 fibre line and the energy recovery system. These improvements will allow the mill to meet growing customer demand for heavy-duty applications, enhance product quality, and bolster its environmental performance by decreasing water consumption and wastewater emissions and increasing energy efficiency.
• The plant at Mondi Warsaw more than doubling in size and capacity, and receiving new machinery and automation, including a corrugator of an industry-leading 3.35 meters in width.
• Expanded corrugated solutions production for the eCommerce market, with modernisation and improvements across eight sites located in Poland (Simet, Świecie, Warsaw, Dorohusk, Szczecin, Bystrzyca), Germany (Eschenbach), and the Czech Republic (Bupak), as well as a comprehensive upgrade of Mondi Simet to erect a warehouse for finished goods storage and to automate internal material flows.
• Investments in operations in Turkey focused on the newly-acquired Mondi Olmuksan plants, with Gebze specialising in eCommerce packaging production, and Bursa reinforcing its heavy-duty output with the addition of sheet production. Most of all, the Izmir site will be transformed by a comprehensive modernisation and expansion programme, enabling a leap in output and efficiency, plus further refinement in quality assurance for customers. Mondi Tire Kutsan Karaman will also get a new high-quality printing casemaker.

“The investments in state-of-the-art machinery for our Mondi Olmuksan plants expand our offering to customers in the region in line with our ambition to become a leading player in the structurally attractive Turkish market. Thanks to our overall expansion and modernisation plans, we will continue to be a reliable partner meeting online retailers’ increasing demand for eCommerce packaging designed for a circular economy. The latest market research on eCommerce shopping and packaging trends in Germany and Poland, commissioned by Mondi, shows that consumers of all ages continue to buy online and prefer eCommerce packaging that is sustainable,” says Armand Schoonbrood, COO Corrugated Solutions at Mondi.

 
The expansion and upgrade of Mondi’s Kuopio semi-chemical fluting mill also remains on track. The €125 million capital investment project announced last year will increase the facility’s capacity by around 55,000 tonnes per annum to meet growing customer demand, enhance product quality and cost-competitiveness, and strengthen the mill’s environmental performance. The project includes an upgrade of the wood yard, fibre line, evaporation plant and paper machine, with start-up planned for the fourth quarter of 2023.

Contact

Waltraud Seiner
Head of Marketing & Communication Corrugated Packaging
Tel: +43 1 79013 4754
Email: Waltraud.seiner@mondigroup.com

 
About Mondi

Mondi is a global leader in packaging and paper, contributing to a better world by making innovative packaging and paper solutions that are sustainable by design. Our business is integrated across the value chain – from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is at the centre of our strategy and intrinsic in the way we do business. We lead the industry with our customer-centric approach, EcoSolutions, where we ask the right questions to find the most sustainable solution. In 2021, Mondi had revenues of €7.7 billion and underlying EBITDA of €1.5 billion.

Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing on the JSE Limited (MNP). Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007.

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