Grupo Gondi containerboard mill ramping up

COVID-19 caused delays, but Mexico City-based Grupo Gondi has reported that its new 400,000-metric-tons-per-year containerboard mill, fed with scrap paper, began producing its first rolls in January.

An early February article by Fastmarkets RISI indicates the firm produced its first reel Jan. 5. The new Grupo Gondi mill and paper machine will make “lightweight linerboard and medium paper machine,” according to RISI.

The article also quotes Grupo Gondi CEO Eduardo Posada as saying, “Despite the challenges we faced due to COVID-19, we are going to market in a very favorable moment, when we see increased demand and lack of supply.”

Posada says much of the board produced will likely be sold in Mexico, but export options have been explored for sales to the United States, South America and even China.

In a late January news release announcing the mill’s startup, Posada remarks, “With this new paper mill, we will be [able to produce] more than 1 million tons of recycled paper per year, [adding] the component of lightweight paper, balancing the equation between paper and packaging to become totally integrated.”

On its website, Grupo Gondi says it has seven mills in total, including a large complex in Guadalajara.