The investment forms part of Mondi's previously-announced €1 billion expansionary capital investment programme, which seeks to accelerate growth in sustainable packaging formats.
In a statement, it said that the investment will help it meet growing demand for paper-based flexible packaging, underpinned by growth in e-commerce and sustainable packaging.
“As a global leader in innovative and sustainable packaging solutions, we are pleased to announce the approval of such an important investment," said Thomas Ott, CEO flexible packaging, Mondi.
"Sustainability is at the heart of all we do and this is a big step forward on our journey to making all our packaging solutions reusable, recyclable or compostable, which is one of our Mondi Action Plan 2030 (MAP2030) commitments.”
Specialty Kraft Paper
The investment will enable the business to optimise production across its kraft paper portfolio, as well as 'strengthen its leading position' in speciality kraft paper across a range of applications.
The paper machine is expected to start up production in 2025 and reach full capacity in 2027.
It will also help to 'further strengthen Mondi’s leading position in the market', the group added.
In 2021, Mondi reported revenues of €7.0 billion and underlying EBITDA of €1.2 billion from continuing operations.