Sonoco Alcore signs multiyear agreement with Mondi to manage all on-site core production operations at Mondi Syktyvkar paper mill in Russia, effective Dec. 1

Sandy Yang

BRUSSELS , November 29, 2012 (press release) – Sonoco Alcore S.a.r.l., a business of Sonoco (NYSE: SON), and Mondi have signed a multi-year agreement in which Sonoco Alcore will manage all on-site core production operations at the Mondi Syktyvkar paper mill in Russia.

Effective Dec. 1, 2012, Sonoco Alcore will take over the production and management of cores at the Syktyvkar mill. Under the agreement, Sonoco will purchase Mondi's existing core equipment and then replace it with newer state of the art technology equipment. The new equipment will include one winder, one in-line cutting machine and two off-line core cutters, as well as core drying chambers. In addition, Sonoco will manage 28 employees responsible for core production on site.

Mario Freissl, head of Supply Chain and Procurement and member of the Board, said, "With this agreement Mondi will receive more stabilized and reliable core quality, and gain access to Sonoco Alcore's operational and technological leadership."

"This agreement significantly benefits both parties," said Adam Wood, vice president, Industrial Converting Europe. "It allows Sonoco to expand its manufacturing footprint in a high-growth market, with the potential to serve additional customers from this location. It also demonstrates our ability to convert self-manufacturers, and aligns with our growth strategy in the Russian core market."

About Mondi Syktyvkar
Mondi has been present in Russia for the last 10 years. In 2010, the company finished the EUR 545 million STEP mill modernisation project. The investment increased production capacity, replaced obsolete technologies, enhanced mill safety, employed additional environmental measures and increased the quality and competitiveness of Mondi's products at the Mondi Syktyvkar mill. Currently, this location operates one board machine and three paper machines, producing up to 1 million tonnes of paper each year. Paper production includes office paper, offset paper, newsprint and linerboard for corrugated cardboard. Mondi's operations at Syktyvkar employ over 3,000 people in the mill and an additional over 3,000 people work in the local forests harvesting the wood for pulp and paper production. Since the acquisition of the German company Nordenia in 2012, Mondi also operates a plant which produces packaging in a central part of Russia.

About Sonoco Alcore
A world-class manufacturer and technological leader of the paper tube and core industry, Sonoco Alcore supplies industry-specific cores to a variety of markets including the paper, textiles, plastic film and construction industries. With 28 manufacturing locations and five paper mills in Europe, the Company can supply facilities anywhere in Europe, the Middle East and Africa. Sonoco Alcore is a wholly owned subsidiary of Hartsville, S.C.-based Sonoco. Visit the Sonoco Alcore website at www.sonoco.com/sonocoalcore.

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