(RTTNews) – Mondi Plc (MNDI.L), a British packaging and paper company, announced on Tuesday that it has agreed to acquire the Duino plant near Trieste in Italy from the Burgo Group for a total of 40 millions of euros.
The acquisition is subject to competitive clearance and other closing conditions. The transaction is expected to close in the second half of the year.
The mill currently operates a paper machine producing lightweight coated mechanical paper. Following the acquisition, this paper machine will be converted to produce around 420,000 tons per year of high quality recycled corrugated cardboard for an estimated investment of around 200 million euros.
Duino is close to two major export ports and is ideally located to supply the company’s corrugated solutions factories in Central Europe and Turkey, as well as to serve the growing local Italian market.
The corrugated cardboard machine is expected to strengthen the upstream integration in the corrugated cardboard packaging.
In London, Mondi shares were trading at 1,665.50 pence, down 0.51%.
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