SCA to increase Kraftliner price by €50 per tonne

Mondi, a global leader in packaging and paper, has created three sustainable packaging products for a brand-new range of vegan products from food manufacturer Orkla. The branded consumer goods company worked closely with Mondi to create sustainable, high-performance packaging for the Swedish launch of its Frankful® plant-based Tex Mex range - soft tortilla wraps, tortilla crisps and taco spices. Each bespoke packaging solution has been designed to provide premium product freshness for consumers and ensure a standout appearance on the shelf for retailers. Using a truly collaborative approach, Mondi supported Orkla’s sustainability agenda, which includes launching healthier food products, reducing food waste and offering environmentally-friendly choices. The three Frankful® products benefit from tailor-made packaging that extends shelf life, balances portion control and is recyclable.

At EUR 1,266.5 million, the consolidated sales of the Group almost reached the previous year's level (1st half of 2019: EUR 1,275.5 million). At EUR 122.5 million, the operating result was 1.2% or EUR 1.5 million below the previous year's figure (1st half of 2019: EUR 124.0 million) and includes expenses from the termination agreement with the former CEO in the amount of EUR -8.6 million, which were booked in equal parts in the divisions. Depreciation and amortization increased from EUR 67.6 million to EUR 89.2 million, which includes market-related impairments in the long-term assets of both divisions in the amount of EUR 20.9 million. The Group's operating margin remained unchanged at 9.7% (1st half of 2019: 9.7%). The profit for the period decreased accordingly by 8.0% to EUR 84.9 million (1st half of 2019: EUR 92.3 million).

Mondi plc has agreed to acquire the 250,000 tonne per annum Hinton Pulp mill in Alberta, Canada, from West Fraser Timber Co. Ltd (West Fraser) for a total consideration of USD 5 million. As part of the transaction, Mondi will enter into a long-term partnership with West Fraser to access local, high-quality fibre from a well-established wood basket. The intention, subject to pre-engineering and permitting, is to invest €400 million in the expansion of Hinton, primarily for a new 200,000 tonne per annum kraft paper machine, anticipated to be operational from the second half of 2027. The acquisition of the mill, and investment in the paper machine, will fully integrate operations in the Americas and enable Mondi to secure the long-term supply of high quality, cost competitive kraft paper into its network of 10 paper bags plants in the region, better positioning Mondi to support the growing market demand for industrial and mailer bags.