Paper and packaging company Mondi has agreed to buy the Duino mill near Trieste in Italy from the Burgo Group for €40m.
The mill currently operates one paper machine producing lightweight coated mechanical paper.
Mondi said on Tuesday that it plans to convert the paper machine to produce around 420,000 tonnes per year of high-quality recycled containerboard for an estimated investment of around €200m.
Close to two important export harbours, Duino is ideally located to supply the group’s corrugated solutions plants in Central Europe and Turkey and to serve the growing local Italian market, Mondi said.
Chief executive officer Andrew King said: “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.”
