Mondi is planning to infuse EUR 185 million across the corrugated solutions plant network and EUR 95 million at Mondi Swiecie containerboard mill. The investment is aimed at meeting the rising demand for sustainable packaging in the FMCG, eCommerce, and industrial market sectors.
March 24, 2022
Mondi Group is investing EUR 280 million in corrugated packaging operations across four countries to boost production and to serve customers more efficiently. This includes around EUR 185 million across its central and eastern European Corrugated Solutions plant network and EUR 95 million at Świecie’s containerboard mill in Poland. These investments together represent an important part of the global packaging leader’s EUR 1 billion in expansionary capital investment projects in sustainable packaging.
European demand for corrugated packaging is expected to grow by 2-4 percent per year in the medium term as customers increasingly insist on more sustainable packaging solutions. To meet this growing demand, the packaging provider is investing in its ability to supply the growing FMCG, eCommerce, and industrial markets.
Markus Gärtner, CEO of Corrugated Packaging at Mondi, says, “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.”
The upgrade of Mondi Świecie’s containerboard mill, comprising an extensive rebuild of 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. 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 m 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. The Izmir site will be transformed by a 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 case maker.
Armand Schoonbrood, COO Corrugated Solutions at Mondi, says “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.”
The expansion of Kuopio semi-chemical fluting mill also remains on track. The EUR 125 million capital investment projects announced last year will increase the facility’s capacity by around 55,000 TPA. The project includes an upgrade of the wood yard, fiber line, evaporation plant, and paper machine, with a start-up planned for the fourth quarter of 2023.