Mergers

Mondi Tire Kutsan and Mondi Olmuksan merged in a new entity

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Multinational packaging and paper company Mondi has completed a merger of its Mondi Tire Kutsan and Mondi Olmuksan businesses.

The merger was announced in July this year and came into effect on 30 September after fulfilling all conditions.

A new entity named Mondi Turkey Oluklu Mukavva has been added to Mondi‘s corrugated packaging business unit through the merger.

The business is listed on the Istanbul Stock Exchange (BIST) and operates nine corrugated packaging plants, a containerboard mill in Tire, Turkey, and a waste-paper collection facility in Adana, Turkey. Mondi holds an 84.65% stake in Mondi Turkey Oluklu Mukavva, which employs more than 1,600 people in total.

«We are delighted to have completed this merger, which significantly strengthens our position in the fast-growing Turkish corrugated market and expands our offering to existing and new customers in the region» says Armand Schoonbrood, chief operating officer of Mondi.  «Our customers benefit from innovative and competitive products and a comprehensive and complementary product portfolio, to meet in particular the rising demand for sustainable packaging solutions within the fast-moving consumer goods (FMCG), e-commerce and industrial market sectors».

The deal comes after Mondi purchased a 90.38% stake in Turkish corrugated packaging company Olmuksan International Paper Ambalaj Sanayi ve Ticaret (Olmuksan) from International Paper in June last year.

Olmuksan supplies sustainable packaging products for various sectors, including food, beverage, agriculture and industrial markets. The company had an annual converting capacity of 300,000t at the time of the transaction.

Founded in 1967, Mondi supplies packaging and paper products for clients in more than 30 countries.

In August this year, the company opened its first in-house recycling laboratory at its mill in Frantschach, Austria. The lab is designed to test the recyclability of paper and paper-based packaging that features non-paper components such as coatings.