Name of the Project
Steti mill modernisation and expansion project.

Location
Czech Republic.

Client
Mondi.

Project Description
The project entails the installation of a new recovery boiler, the rebuilding of the fibre lines, the debottlenecking of the paper machines and investing in a new 90 000 t/y machine-glazed kraft paper machine.

Key benefits of the project are:
• increased electricity self-sufficiency, lower energy costs and reduced environmental footprint of the mill;
• increased pulp production of 130 000 t/y, and lower pulp-production costs per tonne;
• debottlenecking the existing packaging paper machines, providing total incremental production of 55 000 t/y of additional capacity to produce 90 000 t/y of machine-glazed kraft paper to supply fast-growing end-uses in flexible packaging and food service applications; and
• avoiding maintenance capital expenditure over the next five years of about €105-million.

Jobs to be Created
Not stated.

Value
The project will cost about €470-million, subject to obtaining approval for various tax incentives and the necessary permitting.

Duration
The new recovery boiler and rebuilt fibre lines are expected to start up in late 2018, while the new paper machine is expected to start up in the first half of 2019.

Based on the current timetable, capital expenditure on the project is expected to be incurred in the three years from 2017 to 2019.

Latest Developments
Mondi has reported that it will postpone its €135-million investment in a new 90 000 t/y machine-glazed speciality kraft paper machine, at its Steti mill.

“While the proposed new machine remains an exciting investment opportunity, offering the lowest-cost production of its sort in Europe, recently announced industry capacity expansions are expected to result in a market imbalance over the period in which the new machine was planned to come on line,” Mondi CEO Peter Oswald has said.

The group has noted, however, that there will be no change to its investment in modernising the Steti mill, including rebuilding the fibre lines, debottlenecking the existing packaging paper machines and a new recovery boiler.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
None stated.

Contact Details for Project Information
Mondi group head of communications Lora Rossler, tel +27 31 451 2111 or email lora.rossler@mondigroup.co.za.