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Mondi PLC on Tuesday said it agreed to acquire the Duino mill from Italian paper manufacturer Burgo Group for a total of €40 million.
The Surrey, England-based packaging and paper firm said the acquisition is expected to close in the second half of 2022.
It is subject to competition clearance and ‘other closing conditions’ that were not specified.
The mill currently operates one paper machine that produces lightweight coated mechanical paper. It is located near Trieste in Italy.
The FTSE 100 listing plans to convert this paper machine to produce around 420,000 tonnes of recycled containerboard per year through an investment of roughly €200 million.
‘Close to two important export harbours, Duino is ideally located to supply the groups corrugated solutions plants in central Europe and Turkey as well as to serve the growing local Italian market. The containerboard machine will strengthen backward integration in corrugated packaging and provide us with security of supply to better serve our customers,’ the company said.
Shares were trading 0.7% lower at 1,663.00 pence each on Tuesday morning in London. In Johannesburg, shares were down 0.7% at R 33,100.
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