Mondi accelerates sustainable growth plans

Investments geared towards meeting the rising demand for sustainable packaging solutions

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Mondi
Mondi accelerates sustainable growth plans with €280 million investment in Corrugated Packaging. Photo Mondi

Mondi, in packaging and paper, is investing €280 million (approximately Rs 2350 crore) in corrugated packaging operations across four countries to boost production and serve customers more efficiently. This includes around €185 million (approximately Rs 1553 crore) across its central and eastern European Corrugated Solutions plant network and €95 million (approximately Rs 797 crore) at Mondi Świecie’s containerboard mill in Poland– demonstrating Mondi’s commitment to its customers, its people, and to responsible and sustainable production. Together, these investments represent an important part of Mondi’s announced €1 billion (approximately Rs 8393 crore) in expansionary capital investment projects this year to accelerate growth in sustainable packaging.

European demand for corrugated packaging is expected to grow by 2 – 4% per year in the medium term as customers increasingly insist on more sustainable packaging solutions. To meet this growing demand, Mondi invests in its ability to supply the growing FMCG, eCommerce, and industrial markets from resource-efficient plants and equipment.

Sustainability is at the heart of Mondi’s strategy. Ongoing investment in our corrugated packaging business supports our MAP2030 commitments around circular-driven packaging and paper solutions created by empowered people taking action on climate. Together with our suppliers, we are further optimising our production processes to use resources more responsibly, minimise our environmental footprint and contribute to a better world. At the same time, customers benefit from enhanced product quality and shorter lead times, while our employees enjoy exciting job opportunities operating state-of-the-art machinery with world-class safety standards.” says Markus Gärtner, chief executive officer of Corrugated Packaging at Mondi.

The upgrade of Mondi Świecie’s containerboard mill, comprising an extensive rebuild of paper machines PM2 and PM5, a new anaerobic treatment plant including an integrated cooling system, and upgrades to the pulp mill, the recycled fibre line and the energy recovery system. These improvements will allow the mill to meet growing customer demand for heavy-duty applications, enhance product quality, and bolster its environmental performance by decreasing water consumption and wastewater emissions and increasing energy efficiency.

The plant at Mondi Warsaw doubled in size and capacity and received new machinery and automation, including a corrugator of an industry-leading 3.35 meters in width.

Expanded corrugated solutions production for the eCommerce market, with modernization and improvements across eight sites located in Poland (Simet, Świecie, Warsaw, Dorohusk, Szczecin, Bystrzyca), Germany (Eschenbach), and the Czech Republic (Bupak), as well as a comprehensive upgrade of Mondi Simet to erect a warehouse for finished goods storage and to automate internal material flows.

Investments in operations in Turkey focused on the newly-acquired Mondi Olmuksan plants, with Gebze specializing in eCommerce packaging production and Bursa reinforcing its heavy-duty output with the addition of sheet production. Mondi Tire Kutsan Karaman will also get a new high-quality printing case maker. The Izmir site will be transformed by a comprehensive modernisation and expansion programme, enabling a leap in output and efficiency, plus further refinement in quality assurance for customers.

The investments in state-of-the-art machinery for our Mondi Olmuksan plants expand our offering to customers in the region in line with our ambition to become a leading player in the structurally attractive Turkish market. Thanks to our overall expansion and modernisation plans, we will continue to be a reliable partner meeting online retailers’ increasing demand for eCommerce packaging designed for a circular economy. The latest market research on eCommerce shopping and packaging trends in Germany and Poland, commissioned by Mondi, shows that consumers of all ages continue to buy online and prefer sustainable eCommerce packaging,” says Armand Schoonbrood, chief operating officer of Corrugated Solutions at Mondi.

The expansion and upgrade of Mondi’s Kuopio semi-chemical fluting mill also remain on track. The €125 million (approximately Rs 1049 crore) capital investment project announced last year would increase the facility’s capacity by around 55,000 tonnes per annum to meet growing customer demand, enhance product quality and cost-competitiveness, and strengthen the mill’s environmental performance. The project includes upgrading the wood yard, fibre line, evaporation plant and paper machine, with a start-up planned for the fourth quarter of 2023.

 

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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