TURKEY – Mondi, a leading British multinational packaging and paper group, has completed the acquisition of a 90.38% stake in Olmuksan International Paper from International Paper.
The acquisition culminates a process which started earlier this year when International Paper announced that it had reached an agreement to sell its 90.38% interest in its corrugated packaging business in Turkey to Mondi, for approximately €66 million.
The Olmuksan business includes five corrugated packaging plants, which supply a diverse customer base with packaging for food, beverage, agriculture and industrial applications.
For the 12 months ended 30 September 2020, Olmuksan generated revenues of TRY 1,093 million ($128.1 million approx.) and produced 256,000 tonnes of corrugated packaging.
Andrew King, group CEO of Mondi, said: “We are delighted to have completed this acquisition, which significantly strengthens our position in the fast-growing Turkish corrugated market and expands our offering to existing and new customers in the region. We look forward to welcoming the Olmuksan team to Mondi.”
Mondi will now launch a mandatory tender offer to acquire the remaining 9.62% of outstanding shares in Olmuksan, which are held by minority shareholders.
Earlier in March, the British packaging company inaugurated a new recycled-content containerboard paper machine in Ružomberok, Slovakia.
Mondi says that the PM19 machine has an annual capacity of 300,000 metric tons and is part of its 370 million euros ($450 million) investment to upgrade the mill and “further reduce its environmental footprint,”.
“The newly installed PM19 line delivers a win-win solution for environmentally-conscious customers seeking the strength, printability and on-shelf appeal of a white fresh fiber top layer and a recycled-fiber bottom layer,” Mondi said in a statement.
The new paper machine is expected to consume more than 200,000 metric tons of scrap paper from Slovakia each year.
In pursuit of eco-friendly packaging, Mondi has also partnered with SILBO, a Polish producer of compostable packaging, to create a paper-based, compostable pack for the Irish farm potato business Meade Farm Group.
The bags replace plastic with paper via the use of a bio-based coating, and have been launched across Ireland, Poland, France and Germany, winning the silver Fruit Logistica Innovation Award.
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