Mondi begins recycled containerboard conversion project in Italy

Following many sizable investments in recycled containerboard production in North America over the past several years, another major mill investment is breaking ground in Europe.

Mondi, a global paper and packaging producer with headquarters in Weybridge, England, officially has started its previously announced conversion project at its mill in Duino, Italy, with plans to convert the site’s existing paper machine from producing lightweight coated paper to recycled containerboard.

“We are excited about the progress of the Duino investment project and the opportunity this provides our growing packaging business,” Mondi Group CEO Andrew King says. “This containerboard machine will strengthen our backward integration and provide us with security of supply to better serve our customers.”

The project represents a 200 million-euro ($216 million) investment after Mondi purchased the mill from the Burgo Group in January 2023 in a deal worth 40 million euros ($43.3 million).

The machine is expected to start up in 2025 and, once fully operational, the company says it will be capable of producing 420,000 metric tons of recycled containerboard for sustainable packaging applications. It also will be Mondi’s widest recycled paper machine at 8.5 meters (28 feet).

“Our investment in Duino allows us to meet the increasing demand for sustainable solutions across central Europe, the Mediterranean area and the local Italian market,” Mondi Corrugated Packaging CEO Markus Gärtner says. “The project team is currently preparing for the upcoming construction works, with a new recycled fiber plant, wastewater treatment plant and the associated infrastructure and warehousing.”

Mondi also notes that, when possible, the mill will source material locally to contribute to the local economy, reduce greenhouse gas emissions through shorter transport distances and strengthen supply chain resilience.

When the company initially announced the purchase of the mill in August 2022, it noted that the Duino mill also is close to “two important export harbors” and is ideally located to serve the group’s Corrugated Solutions plants in central Europe and Turkey.

“We are excited by this opportunity to invest in the growth of our packaging business, build on our integrated platform and broaden our geographic reach,” King said at the time.

The Duino investment is part of the company's 1.2 billion euros ($1.3 billion) in approved investments in organic growth projects aimed at meeting the demand for sustainable packaging as well as enhancing its product offering and reducing environmental impact.