Paper and packaging firm Mondi Ltd, which officially floated its shares on the JSE on Tuesday, after separating from mining giant Anglo American, plans to spend €875-million, or R8,3-billion, on brownfields growth projects in Russia and Poland over two years, it said at the listing ceremony in Johannesburg.

Of the €875-million, it would spend €525-million in Russia, and €350-million in Poland.

Mondi CEO David Hathorn said that the company was also involved in negotiations to acquire a Turkish firm, but would not disclose further details, speaking in a telephone interview.

"We are continuously working on a variety of acquisitions," he said.

The company was focusing its growth efforts in emerging markets, where costs were lower and growth levels higher.

Its stock began trading at R68,80 in Johannesburg on Tuesday, but had slid by nearly 7% to R63,70 a share when the JSE closed, giving the company a market capitalisation of R32,81-billion.

Mondi conditionally began trading on the LSE and the JSE on Monday, until it had high court approval for its split from Anglo American, which was received on Monday night.

The company was spun off from the Anglo American group as the diversified miner wanted to focus on its core mining businesses.

Mondi will remain headquartered in Johannesburg, and will have the same management team for LSE- and JSE-listed Mondi PLC and Mondi Ltd, which is only quoted on the Johannesburg bourse.

The companies will both be chaired by Cyril Ramaphosa, who leads Mondi’s black-economic empowerment partner Shanduka, and Sir John Parker of the UK

To subscribe to Engineering News's print magazine email subscriptions@creamermedia.co.za or buy now.