JOHANNESBURG, Oct. 15, 2018 (Press Release) -Having recently obtained the necessary permitting, Mondi is proceeding with the investment in a new 300,000 tonne per annum kraft top white machine at Ruzomberok (Slovakia), with start-up expected towards the end of 2020.
Commenting on the project, Mondi Group CEO Peter Oswald said, “This investment provides an exciting opportunity for Mondi to leverage our cost advantaged mill in Slovakia to complement our portfolio and serve a growing market with innovative and sustainable containerboard solutions.”
The machine will produce a new and unique environmentally sound containerboard grade, kraft top white, which combines the strength, printability and appearance benefits of a white virgin fibre top layer with the economic advantages of a recycled fibre bottom layer. Its access to integrated bleached hardwood pulp production, scale and location benefits due to its brownfield nature will provide this machine a cost advantage difficult to replicate. Kraft top white will target the growing white top liner markets for applications such as shelf-ready packaging, point of sale displays, customised packaging, e-commerce, consumer durables and other specialised applications.
The related pulp mill upgrade at the same site is progressing according to plan with start-up expected in late 2019. This upgrade will debottleneck pulp production by 100,000 tonnes per annum, which will be integrated into the containerboard production once the new machine ramps up.
The total project cost has been revised to €340 million (up from €310 million), as a result of refinements to the machine’s technical concept and higher construction costs since the project was initially scoped. Group capital expenditure continues to be in line with our previous estimate of €700-800 million per annum in 2018 and 2019.
Mondi is a global leader in packaging and paper, delighting its customers and consumers with innovative and sustainable packaging and paper solutions. Mondi is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything Mondi does. In 2017, Mondi had revenues of €7.10 billion and underlying EBITDA of €1.48 billion.
Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker MND, and a premium listing on the London Stock Exchange for Mondi plc, under the ticker MNDI. Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007.