Mondi, a packaging and paper company, announced on Monday that a $5 million (R94 million) agreement had been agreed to buy a pulp factory in Canada. Additionally, in order to fulfill the rising demand for paper-based packaging in the Americas, it plans to invest €400 million (about R8.2 billion) in developing the business.
The installation of a new 200 000-ton-per-year kraft paper machine at the Hinton pulp mill in Alberta, Canada, is the aim, according to Mondi, but it is still pending engineering and permitting considerations. It is predicted that this will start operating in the second half of 2027.
Kraft paper, which is frequently used in packaging for food products and for shipping goods, is produced in great quantities by Mondi. This is because of its durability and resistance to tearing.
With operations in more than 30 countries and a market value of over R143 billion on the JSE, Mondi has previously stated that Europe and North America account for roughly half of the world’s projected $1 trillion annual demand for packaging. It is now investing in markets with strong structural growth, where demand is being bolstered by expanding e-commerce demand and consumer interest in packaging solutions that are more ecologically friendly.
The company also disclosed plans to invest €400 million on a new kraft paper plant for its flagship Czech mill in late 2022.
Customers will profit from a fully integrated and significantly shorter supply chain, the business claimed on Monday, as a result of the acquisition of the Canadian mill and related planned investment. According to the organization, this will significantly lessen its carbon footprint.
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