17 September 2012
South African paper maker Mondi has expanded its presence in Europe with the acquisition of packaging company Duropack’s operations in Germany and the Czech Republic, the company announced last week.
In a deal worth €125-million, which includes two corrugated box packaging plants and one recycled containerboard mill, Mondi aims to consolidate its European operations.
“[It] is in line with Mondi Group’s strategy to strengthen its leading market position in corrugated packaging in central and eastern Europe,” the company said in a statement.
It follows the organisation’s US$782-million purchase of German packaging company Nordenia in August.
The deal is being funded from Mondi’s existing resources.
It was also announced that all employees at Duropack will be taken on by Mondi. “Our strategy is consequently focused on east and southeast Europe,” said chief executive officer of Duropack, Peter Szivacsek.
“The sale of our operations in Germany and the Czech Republic further strengthens our profile and allows us to focus entirely on our core markets and core business, packaging.”
According to Mondi, the two corrugated box plants consume about 130 000 tonnes of containerboard annually, and the recycled containerboard mill has a production capacity of 105 000 tonnes per year.
Mondi is an international paper and packaging company with operations in 28 countries around the world and over 23 000 employees; its key operations are in South Africa, central Europe and Russia.