“Over the past three years our major capital projects have contributed EUR 95 million of incremental operating profit, including EUR 20 million in 2018. We expect to generate a further EUR 50 million in 2019,” said Mondi Group’s CEO, Peter Oswald.
March 12, 2019
Mondi Group’s CEO, Peter Oswald, said Mondi plans to invest on average EUR 700-800 million per year during the next two years on capital projects to drive the company’s fibre packaging operations.
He said, “Our disciplined approach to investigating, approving and executing capital projects is one of our key strengths and plays an important role in successfully delivering returns through the cycle. Over the past three years our major capital projects have contributed EUR 95 million of incremental operating profit, including EUR 20 million in 2018. We expect to generate a further EUR 50 million in 2019.
In the fourth quarter of 2018, we successfully commissioned the EUR 335 million modernisation of the Steti mill to replace the recovery boiler, rebuild the fibre lines and debottleneck the existing packaging paper machines. The project is expected to result in additional annual production of 90,000 tonnes of softwood market pulp and 55,000 tonnes of packaging paper. We have a focused capital expenditure project pipeline securing our future growth.
“Our recently completed and planned major capital projects in the Czech Republic, Slovakia and Russia are expected to increase our current saleable pulp and paper production by around 10 percent when in full operation. Given the approved project pipeline and in the absence of any other major investment, our capital expenditure is expected to be in the range of EUR 700-800 million per annum, on average, for 2019 and 2020, ” said Peter Oswald.