Mondi proceeds with Slovakia kraft top white machine project, but costs rise
After receiving permitting approvals, global packaging and paper group Mondi will invest in a new 300 000 t/y kraft top white machine at its Ruzomberok factory, in Slovakia, with start-up expected towards the end of 2020.
“This investment provides an exciting opportunity for Mondi to leverage our cost-advantaged mill in Slovakia to complement our portfolio and serve a growing market with innovative and sustainable containerboard solutions,” said Mondi CEO Peter Oswald.
The machine will produce a new and unique environmentally sound containerboard grade, kraft top white, which combines the strength, printability and appearance benefits of a white virgin fibre top layer with the economic advantages of a recycled fibre bottom layer.
Its access to integrated bleached hardwood pulp production, scale and location benefits, owing to its brownfield nature, will provide this machine a cost advantage that is difficult to replicate, said Mondi.
Kraft top white will target the growing white top liner markets for applications such as shelf-ready packaging, point of sale displays, customised packaging, e-commerce, consumer durables and other specialised applications, explained Oswald.
The related pulp mill upgrade at the same site is progressing according to plan with start-up expected in late 2019. This upgrade will debottleneck pulp production by 100 000 t/y, which will be integrated into the containerboard production once the new machine ramps up.
The total project cost has been revised to €340-million, up from €310-million, as a result of refinements to the machine’s technical concept and higher construction costs since the project was initially scoped.
Mondi’s capital expenditure, nevertheless, continues to be in line with its previous estimate of between €700-million and €800-million a year for 2018 and 2019.
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