Mondi pressing ahead with new kraft top white machine in Slovakia

Mondi announced on Monday that, having recently obtained the necessary permitting, it was now proceeding with the investment in a new 300,000 tonne-per-annum kraft top white machine at Ruzomberok in Slovakia, with start-up expected towards the end of 2020.

The FTSE 100 company said the machine would produce a “new and unique” environmentally sound containerboard grade - kraft top white - which would combine the strength, printability and appearance benefits of a white virgin fibre top layer with the economic advantages of a recycled fibre bottom layer.

It said its access to integrated bleached hardwood pulp production, scale and location benefits due to its brownfield nature would provide the machine a cost advantage “difficult to replicate”.

Kraft top white would 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, Mondi explained.

The related pulp mill upgrade at the same site was said to be progressing according to plan, with start-up expected in late 2019.

That upgrade would debottleneck pulp production by 100,000 tonnes per annum, which would be integrated into the containerboard production once the new machine ramped up.

The total project cost was revised to €340m, up from €310m, as a result of refinements to the machine’s technical concept and higher construction costs since the project was initially scoped.

Group capital expenditure continued to be in line with the company’s previous estimate of between €700m and €800m per annum in 2018 and 2019.

“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 chief executive officer Peter Oswald.