CZECH REPUBLIC (News release) -- Mondi, a global leader in sustainable packaging and paper, has announced the approval of a €400 million investment in a new paper machine at its flagship Štětí mill in the Czech Republic. The investment forms part of the Group's €1 billion expansionary capital investment programme to accelerate growth in sustainable packaging and will further strengthen Mondi's leading position in the market.

The investment will help Mondi to meet the growing demand for paper-based flexible packaging, underpinned by growth in eCommerce and sustainable packaging, and will contribute to increasing Mondi's range of innovative, sustainable packaging and paper solutions. The new machine will produce around 210,000 tonnes per annum of sack kraft paper supporting Mondi's Paper Bags business thanks to the benefits of a vertically integrated value chain. It will also allow Mondi to optimise production across the remaining kraft paper portfolio and strengthen its leading position in speciality kraft paper across a broad range of applications such as functional barrier papers.

Thomas Ott, CEO Flexible Packaging, Mondi, comments: "As a global leader in innovative and sustainable packaging solutions, we are pleased to announce the approval of such an important investment. Sustainability is at the heart of all we do and this is a big step forward on our journey to making all our packaging solutions reusable, recyclable or compostable, which is one of our Mondi Action Plan 2030 (MAP2030) commitments."

The paper machine is expected to start up production in 2025 and reach full capacity in 2027.