Mondi, a sustainable packaging and paper company, has initiated the construction of its €200m ($216.43m) recycled containerboard mill in Duino, Italy.  

A ground-breaking event was held to mark the start of construction. 

The investment follows the acquisition of the mill from graphic and speciality paper producer Burgo Group for €40m in January 2023. 

The company is converting the site's existing paper machine into an advanced recycled containerboard machine. 

The investment forms part of Mondi’s €1.2bn in approved investments in organic growth projects. 

The development is intended to address the increasing demand for sustainable packaging, improve its product offering, and further cut its environmental impact. 

Mondi CEO Andrew King said: “We are excited about the progress of the Duino investment project and the opportunity this provides our growing packaging business.

"This containerboard machine will strengthen our backward integration and provide us with security of supply to better serve our customers.” 

The new machine is anticipated to commence operations in 2025. 

At full capacity, the mill's machine will have the capacity to produce 420,000 tonnes (t) of recycled containerboard annually, making it Mondi's widest recycled paper machine at 8.5m.

Mondi said it will continue to follow its approach of sourcing materials locally for the mill wherever possible. 

This approach will help support the local economy, minimise greenhouse gas emissions, and enhance supply chain resilience.  

Mondi Corrugated Packaging CEO Markus Gärtner said: “Our investment in Duino allows us to meet the increasing demand for sustainable solutions across Central Europe, the Mediterranean area, and the local Italian market.

"The project team is currently preparing for the upcoming construction works, with a new recycled fibre plant, wastewater treatment plant and the associated infrastructure and warehousing.”  

Recently, Mondi unveiled a new secondary paper packaging solution, ‘TrayWrap’, to replace the plastic shrink film traditionally used for bundling food and beverage products.