Mondi has announced its intention to carry out a 470 million Euro investment in the modernisation and expansion of its Štětí plant in the Czech Republic. The project involves the setting up of a new boiler, the reconstruction of lines for fibre connection, the elimination of production bottlenecks in the paper machines and the purchase of a new machine with a yearly capacity of 90 thousand tons to produce glossy and coated paper to supply flexible packaging and applications for the food sector. The main advantages of the project include the increase in electrical energy, as well as less energy costs and a lower environmental impact. An increase of 130 thousand tons of pulp and related lower production costs are furthermore expected. The works for the new boiler and the new fibre lines are expected to start at the end of 2018, while the new machine is expected to start working in the first half of 2019. This investment is a major step forward in the continuous development of the printing paper business, as it takes advantage of the low production cost in central Europe to manufacture high quality products that meet the needs of demand.
… and acquires Excelsior Technologies
Mondi Group has acquired 100% of the share capital of Excelsior Technologies Limited from LLP Endless managed funds and some other minority shareholders for a total value of 33 million GBP (i.e. 38 million Euros). Excelsior is a vertically integrated producer of innovative flexible packaging solutions for the food sector and provides a unique packaging solution for microwave steam cooking. Thanks to its two plants based in Deeside (Northern Wales, United Kingdom) and Nelson (Lancashire, UK) the company serves both national and US customers. In the financial year closed on 31st December 2016, Excelsior generated revenues worth 39 million GBP (i.e. 47 million Euros).
A change at the top
CEO David Hathorn (on the left in the picture) has informed Board members of his decision to withdraw from the office. Peter Oswald (right in the picture), who is currently one of the executive directors and Chief Executive Officer of the European & International division, will take up Hathorn’s office. The latter joined Mondi in 1991 and has served as the company’s managing director since 2000. At Mondi Oswald has covered several roles since he joined the company in 1992. In January 2008 he became the company’s executive director and CEO of the European & International Division. Hathorn and Oswald will work together over the next three months to guarantee a smooth transition. Hathorn will remain the CEO of the Group, director of Mondi plc and Mondi Limited until the annual general meetings of 11th May 2017, when Oswald will take on the full office as Group CEO. Hathorn will continue working as executive until he retires in February 2018.