Mondi Completes the Sale of Three Russian Converting Operations

The three packaging converting operations comprise a corrugated solutions plant and two consumer flexibles plants, producing a range of packaging solutions for the domestic Russian market.

July, 6, 2023 - Following the announcement on 15 December 2022 of the agreement to sell its three Russian packaging converting operations to the Gotek Group for a total consideration of RUB 1.6bn, Mondi confirmed that Gotek Group received all requisite approvals and the sale has been completed.

The Gotek Group is a leading Russian packaging producer, headquartered in Moscow, and employs around 2,200 employees across its business.

The three packaging converting operations comprise a corrugated solutions plant and two consumer flexibles plants, producing a range of packaging solutions for the domestic Russian market.

Mondi said that it has received net proceeds of EUR 30.4 million from this disposal into its Austrian bank account.

"The net proceeds from the sale of all our Russian assets will be distributed to shareholders as soon as reasonably practicable following receipt, once our exit from Russia has been completed," Mondi said in a press statement.

"The proposed disposal of Mondi Syktyvkar, Mondi's most significant facility in Russia, is not connected with the disposal of the three packaging converting operations," the company noted. "The Board remains committed to divest Syktyvkar and continues to assess all alternative divestment options."

Mondi is a global leader in packaging and paper, offering innovative and sustainable packaging and paper solutions. The company is fully integrated across the packaging and paper value chain.

SOURCE: Mondi plc