Mondi Limited
Incorporated in the Republic of South Africa
Registration number: 1967/013038/06
JSE share code: MND ISIN: ZAE000156550
Mondi plc
Incorporated in England and Wales
Registered number: 6209386
LEI: 213800LOZA69QFDC9N34
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
26 January 2017
As part of the dual listed company structure, Mondi Limited and Mondi plc
(together "Mondi Group" or "Mondi") notify both the JSE Limited and the London
Stock Exchange of matters required to be disclosed under the Listings
Requirements of the JSE Limited and/or the Disclosure Guidance and Transparency
Rules and the Listing Rules of the United Kingdom Listing Authority. This
announcement contains inside information and falls within the 'inside
information' classification pursuant to the requirements in Articles 7 and 9 of
the regulatory technical standards of the Transparency Directive (2004/109/EC).
Modernisation and expansion of the Steti mill in the Czech Republic
As previously stated, Mondi continues to assess capital investment
opportunities centred on the Group's high-quality, low-cost packaging paper
assets in central Europe.
The Mondi Boards have approved the modernisation and expansion of the Steti
mill for a total investment of €470 million, subject to obtaining approval for
various tax incentives and necessary permitting. The project consists of the
installation of a new recovery boiler, the rebuild of the fibre lines, the
debottlenecking of the paper machines and an investment in a new 90,000 tonnes
per annum machine glazed kraft paper machine. Key benefits of the project are:
* Increased electricity self-sufficiency, lower energy costs and reduced
environmental footprint of the mill
* Increased pulp production of 130,000 tonnes per annum and lower pulp
production costs per tonne
* Debottlenecking of existing packaging paper machines providing total
incremental production of 55,000 tonnes per annum
* Additional capacity to produce 90,000 tonnes per annum of machine glazed
kraft paper to supply fast growing end-uses in flexible packaging and food
service applications
* Avoidance of maintenance capital expenditure over the next five years of
around €105 million.
The new recovery boiler and rebuilt fibre lines are expected to start up in
late 2018 while the new paper machine is expected to start up in the first half
of 2019. Based on the current timetable, capital expenditure on the project is
expected to be incurred in the three years from 2017 to 2019.
Given the approved project pipeline, the Group's annual capital expenditure is
now expected to be in the range of €600-650 million in 2017 and €800-850
million in 2018.
Commenting on the project, Mondi Group CEO David Hathorn said, "This investment
represents an exciting step in the continued development of our Packaging Paper
business, further leveraging our low-cost production footprint in central
Europe to produce high quality products that meet the growing needs of our
customers."
Contact:
Mondi Group
Lora Rossler
Group Head of Communications
Tel: +27 (0)31 451 2111 or +27 (0)83 627 0292
E-mail: lora.rossler@mondigroup.co.za
Andrew King
Group CFO
Tel: +27 (0)11 994 5415
E-mail: andrew.king@mondigroup.com
We are Mondi: In touch every day
At Mondi, our products protect and preserve the things that matter.
Mondi is an international packaging and paper Group, employing around 25,000
people across more than 30 countries. Our key operations are located in central
Europe, Russia, North America and South Africa. We offer over 100 packaging and
paper products, customised into more than 100,000 different solutions for
customers, end consumers and industrial end uses - touching the lives of
millions of people every day. In 2015, Mondi had revenues of €6.8 billion and a
return on capital employed of 20.5%.
The Mondi Group is fully integrated across the packaging and paper value chain
- from managing forests and producing pulp, paper and compound plastics, to
developing effective and innovative industrial and consumer packaging
solutions. Our innovative technologies and products can be found in a variety
of applications including hygiene components, stand-up pouches, super-strong
cement bags, clever retail boxes and office paper. Our key customers are in
industries such as automotive; building and construction; chemicals; food and
beverage; home and personal care; medical and pharmaceutical; packaging and
paper converting; pet care; and office and professional printing.
Mondi has a dual listed company structure, with a primary listing on the JSE
Limited for Mondi Limited under the ticker code MND and a premium listing on
the London Stock Exchange for Mondi plc, under the ticker code MNDI.
For us, acting sustainably makes good business sense and is part of the way we
work every day. We have been included in the FTSE4Good Index Series since 2008
and the JSE's Socially Responsible Investment (SRI) Index since 2007.
Sponsor in South Africa: UBS South Africa (Pty) Ltd