The international paper and packaging group Mondi has completed a major investment programme worth €1.2 billion aimed at expanding capacity across its corrugated and flexible packaging operations.
The investment covers both paper mills and converting plants and is intended to increase production capacity, improve cost competitiveness and reduce the environmental footprint of the company’s industrial operations.
The programme has been implemented over the past three years and represents one of Mondi’s largest industrial expansion efforts in recent years.
According to the company’s 2024 annual report, around 80 per cent of the projects had been completed by the end of the year.
– Over the last three years, Mondi has undertaken a meaningful capital expenditure programme across both corrugated and flexible packaging mills and converting plants. We have invested €1.2 billion in total to expand capacity, strengthen our cost position and improve our environmental footprint, said Group CEO Andrew King in the report.
New machines and expanded production sites
Several of the largest projects are already operational. Among them is a new paper machine at Mondi’s mill in Štětí in the Czech Republic, which started production in December 2024.
In total, five major capacity expansion projects are now running. Another key project at the company’s Duino site in Italy is expected to be completed during the first half of 2025.
Mondi has also expanded its converting capacity, including major box-plant expansions in Warsaw and Simet in Poland.
In flexible packaging, the company has invested in new pet food packaging equipment and installed a new extrusion line at the Štětí site. The facility will support the production of packaging used for both food and non-food products.
– With the investment and construction phase largely complete, our focus now turns to ensuring that these projects ramp up capacity efficiently and generate value from our investments, Andrew King said.
Stable results despite weak demand
The company describes 2024 as a year marked by difficult economic conditions, geopolitical tensions and weak demand in several markets.
Despite this environment, Mondi reported an underlying EBITDA of €1,049 million.
– This performance highlights the strength of our cost-competitive, strategically located assets and our ability to adapt to uncertain market conditions, said Andrew King in the annual report.
Packaging activities dominate Mondi’s business today. About 85 per cent of the company’s revenue comes from packaging products, while the remaining 15 per cent is generated by uncoated fine paper used for office, printing and professional applications.
Mondi is one of Europe’s largest producers of containerboard – the paper used to manufacture corrugated cardboard packaging. The group also manufactures flexible packaging materials and kraft paper used for paper bags and various industrial applications.
Packaging demand expected to grow
According to Mondi’s market outlook, the global packaging market is expected to grow by around two to four per cent per year over the economic cycle.
The company points to several structural drivers behind the trend, including the continued expansion of e-commerce and a shift by many companies away from plastic packaging towards paper-based alternatives.
During 2024, Mondi’s corrugated packaging segment improved its performance compared with the previous year. Underlying EBITDA reached €328 million, and the margin increased to 14.6 per cent.
Flexible packaging reported underlying EBITDA of €558 million, although the result was affected by lower selling prices and rising cost pressures.
The uncoated fine paper business experienced a weaker second half of the year due to lower prices and changes in the valuation of forestry assets.
At the same time, demand for kraft paper and paper-based packaging continued to grow in certain sectors, particularly construction materials, cement packaging and e-commerce logistics.
Source: The Pulp and Paper Times / Mondi Annual Report 2024
Fact check
Mondi is an international packaging and paper company operating across Europe, Africa and North America. The group is among Europe’s largest producers of containerboard used in corrugated packaging and also manufactures kraft paper, paper bags and flexible packaging solutions. Packaging products account for about 85 per cent of the company’s total revenue.
