Packaging firm Mondi plc has agreed to acquire the Duino mill near Trieste in Italy from the Burgo Group for a total consideration of €40 million.
The deal will see Mondi convert the mill, which currently operates one paper machine for the production of lightweight coated mechanical paper, to a facility manufacturing recycled container board.
The company hopes to produce approximately 420,000 tonnes of container board with an estimated investment of approximately €200 million.
The acquisition is subject to competition clearance and other closing conditions, and is expected to close in the second half of the year.
'Opportunity To Invest'
Mondi Group CEO Andrew King stated, "We are excited by this opportunity to invest in the growth of our packaging business, build on our integrated platform and broaden our geographic reach."
Located close to two export harbours, the facility will be instrumental in supplying to the group’s corrugated solutions plants in Central Europe and Turkey, as well as serve the local Italian market.
Elsewhere, the British paper and packaging firm announced that it has agreed to sell its largest plant in Russia to an investment vehicle owned by Russian billionaire Viktor Kharitonin for RUB 95 billion (€1.5 billion).
The company also has three much smaller plants in Russia that are not affiliated to Syktyvkar and not part of this deal with Augment Investments, it said.