Mondi has cut the recoverable value of the land, buildings and plant at its Duino mill in Italy to EUR 37m from a book value of EUR 234m, a EUR 197m write-down disclosed in the notes to the subsidiary's 2025 accounts and to be booked this year. The former Burgo coated-paper site, bought in 2022 and converted to recycled containerboard, started production in May 2025 and lost EUR 57m on revenue of EUR 46.6m in 2025. Mondi injected a further EUR 235m of capital in July 2026 and expects 2026 revenue to more than double.
Why this mattersAn 84% impairment soon after start-up shows how overcapacity, price pressure and energy costs have undermined the case for converting European graphic-paper mills to containerboard.
- Recoverable value of the Duino mill's land, buildings and plant cut to EUR 37m from EUR 234m, a write-down of EUR 197m (84%).
- Mondi Duino posted a 2025 net loss of EUR 57m on revenue of EUR 46.6m, with EBITDA of minus EUR 41.1m; production started in May 2025.
- Mondi paid EUR 40m for the former Burgo site at San Giovanni di Duino in 2022 and invested a further EUR 212m.
- Mondi made capital contributions of EUR 80m in 2025 and EUR 235m in July 2026; its financial commitment exceeded EUR 250m up to 2025.
- Mondi expects Duino's 2026 revenue to more than double from 2025 and says production is on plan.
- The accounts' notes state the mill could not currently be sold to another operator; Mondi has not decided to close or sell it.
Mondi sold one solid board converting plant at the end of September 2026 and agreed to sell a second, as part of streamlining its asset base; it is also moving customer volumes out of converting plants due to close later in 2026. The disposals were disclosed in its Q3 2026 trading update on 15 October, which showed underlying EBITDA of EUR 196m against EUR 167m in Q2; excluding forestry fair value movements, EBITDA fell quarter on quarter because of planned maintenance shutdowns.
Why this mattersMondi is shrinking its converting footprint to contain fixed-cost inflation while relying on further paper price increases to recover margins squeezed by energy and wood costs.
- Mondi sold one solid board converting plant at the end of September 2026 and agreed to sell a second.
- Mondi is transferring customer volumes from converting plants scheduled to close later in 2026.
- Q3 2026 underlying EBITDA was EUR 196m, against EUR 167m in Q2, which included a EUR 43m negative forestry fair value impact.
- Excluding forestry fair value, underlying EBITDA fell quarter on quarter, mainly due to planned maintenance shutdowns.
- Mondi announced further price increases for several paper grades in Q3, with the benefit expected from late 2026 into 2027.
- Energy costs rose through Q3 and wood costs in Central and Eastern Europe increased.
Mondi's underlying EBITDA rose to EUR 196m in the third quarter of 2026 from EUR 167m in the second quarter, which included a EUR 43m forestry fair-value loss, as earlier price increases offset planned maintenance shutdowns and faster-than-expected input-cost inflation. Gas averaged EUR 63/MWh, up 35-40% sequentially, adding roughly EUR 20-25m to quarterly costs; Mondi does not hedge energy. Management expects price increases to offset cost inflation in the fourth quarter at current spot prices, but says energy markets remain volatile.
Why this mattersWith 80-85% energy self-generated but no hedging, Mondi's margin hinges on whether paper price increases keep pace with gas; exposure is concentrated at Duino and Neusiedler.
- Underlying EBITDA was EUR 196m in Q3 2026, against EUR 167m in Q2 2026, which included a EUR 43m forestry fair-value loss.
- Gas averaged EUR 63/MWh in Q3 2026, up 35-40% sequentially; gas and other energy-related costs added about EUR 20-25m in the quarter.
- Mondi had guided to a EUR 35m rise in wood costs in H2 versus H1 2026, about half of it falling in Q3 versus Q2.
- Mondi generates about 80-85% of its own energy and does not hedge energy costs.
- Like-for-like volumes grew about 1% year on year against a largely flat European market.
- Mondi is transferring customer volumes from converting plants scheduled for closure later in 2026.
- Mondi sold one solid board converting plant and agreed to sell a second, with the second sale due to complete by end-September 2026.
- Underlying profit reached EUR 196m (USD 220.6m) in Q3 2026, up 17.4% quarter on quarter, partly reflecting the absence of Q2's forestry impairment.
- Shares fell as much as 8.8% in early trading after the results on continued input-cost pressure concerns.
- CEO Andrew King said further packaging paper price increases should support performance into the fourth quarter despite ongoing cost pressures.
- JPMorgan analysts said sequential fourth-quarter price gains from the increases would likely be minimal as energy costs keep rising.
- CEO Andrew King said higher packaging-paper prices are expected to support fourth-quarter performance
- Containerboard pricing allowed Corrugated Packaging to offset higher energy and wood costs
- Corrugated Solutions margins were hit by competitive pressure and a delayed paper-price recovery
Mondi has created a multicolour digital-printed packaging design on unbleached brown paper for the launch of Kärcher's S 4 Twin Go!Further sweeper. The solution uses computer-to-print technology with an optional white underprint to reproduce Kärcher's brand colour accurately on brown stock while signalling the product's recycled plastic content.
Why this mattersDigital printing on unbleached paper lets brand owners show recycled content visually while meeting colour-fidelity needs without printing plates.
- Mondi developed multicolour digital printing with optional white underprint on brown, unbleached paper for Kärcher's S 4 Twin Go!Further sweeper
- Kärcher states the sweeper's plastic components contain 30 percent recycled material
- The packaging uses computer-to-print technology, removing the need for printing plates in demand-driven production
- Water-based inks used are approved for primary packaging by Swiss Quality Testing Services (SQTS)
- Janis Walker, Lead Buyer Packaging at Kärcher, described Mondi as a long-standing partner on the project
- Mondi cut Stiebel Eltron's corrugated packaging specifications by more than 75%, down from about 150 versions, the prior month
German startup Traceless Materials has opened its first industrial-scale production plant, in Hamburg-Harburg, with annual capacity of about 3,000 tonnes of a bio-circular thermoplastic granulate made from grain-processing residues. The plant was funded by a EUR 36.6m (USD 41.1m) Series A round in September 2023 plus a further EUR 5.1m (USD 5.7m) grant from a German government environmental innovation programme. Mondi is named as a strategic partner and distributor Biesterfeld is scaling the injection-moulding grade across Europe.
Why this mattersA 3,000-tonne compostable granulate line moves a bio-based feedstock from pilot to industrial volumes, with Mondi and Biesterfeld as the route to converters.
- Hamburg-Harburg plant opened in 2026 with annual capacity of about 3,000 tonnes of traceless material
- Plant construction was funded by a EUR 36.6m (USD 41.1m) Series A in September 2023 led by UB Forest Industry Green Growth Fund and SWEN CP's Blue Ocean Fund
- A further EUR 5.1m (USD 5.7m) came from the German Federal Ministry for the Environment's Environmental Innovation Programme
- Material is a thermoplastic granulate derived from industrial grain-processing residues, certified biobased and home compostable
- Mondi is named as a strategic partner and Biesterfeld is scaling the injection-moulding grade across Europe
- Headcount has grown from about 40 at the time of the Series A to over 80 employees
Mondi is disposing of two corrugated and carton converting plants in Germany that it acquired as part of its takeover of Schumacher Packaging's Western European operations. A company spokeswoman confirmed the move to EUWID as part of Mondi's continued optimisation of its site network.
Why this mattersThe disposal signals Mondi is trimming capacity gained through the Schumacher acquisition rather than retaining the full footprint, a signpost for integration costs across recent consolidation deals.
- Mondi is selling two carton and corrugated processing plants in Germany
- The plants were part of Mondi's acquisition of Schumacher Packaging's Western European activities
- A Mondi spokeswoman confirmed the sale to EUWID Verpackung
- The move is described as part of Mondi's ongoing site network optimisation
- Mondi completed the sale of one solid-board converting plant at the end of September 2026 and agreed the sale of a second
- Customer volumes from converting plants scheduled for closure later in 2026 are being transferred to other sites
- Mondi said it continues to evaluate further changes to its converting-plant portfolio
Mondi has ceased production at its Brzeźno plant in eastern Poland and will fully close the site on 30 September 2026, cutting 162 jobs. The company announced the liquidation in late April 2026 after more than 20 years of operation at the location; machinery is now being dismantled, with some equipment reportedly heading to Germany and some sold to Ukrainian buyers.
Why this mattersEquipment leaving the site for Germany and reportedly for Ukrainian buyers indicates the 162-job Brzeźno plant will not restart, removing Mondi capacity from eastern Poland.
- Production at Mondi's Brzeźno plant in Dorohusk municipality has stopped, with the site to close fully on 30 September 2026.
- The closure eliminates 162 jobs: 43 in administration, 92 in production, 18 in logistics and 9 in technical roles.
- Mondi announced the liquidation decision at the end of April 2026.
- The plant had operated for more than 20 years, employing residents of Chełm and Chełm county.
- Machinery is being dismantled; some equipment is reportedly being sent to Germany and some sold to Ukrainian buyers rebuilding a bombed factory.
- Local unemployment in the Chełm labour office stood at 4,742 people at end-August 2026, before the Mondi layoffs take full effect in October.
Moody's Ratings has cut Mondi Plc's rating to Baa2 from Baa1, citing weakened earnings and cash flow through a prolonged paper and packaging downturn. The agency revised the outlook to stable from negative, noting adjusted gross debt/EBITDA of about 3.7x against prior guidance of around 2.0x. Mondi held about EUR 154m in cash and an undrawn EUR 1.0bn revolving credit facility at 30 June 2026.
Why this mattersA downgrade at a core containerboard and kraft paper producer signals sector-wide margin pressure and could raise Mondi's future funding costs.
- Moody's cut Mondi Plc's rating to Baa2 from Baa1 on 22 September 2026
- Outlook revised to stable from negative
- Moody's-adjusted gross debt/EBITDA at about 3.7x, versus prior guidance of around 2.0x
- Retained cash flow to net debt fell to about 19.9%, below the 30% prior threshold
- EBITDA margin declined to about 10.1%
- Mondi held about EUR 154m in cash and an undrawn EUR 1.0bn committed revolving credit facility at 30 June 2026
Mondi has developed a new corrugated packaging concept for Stiebel Eltron's water heater range, cutting the number of board grades used by more than 75% while switching to white digital printing on brown board. The redesign covers 150 packaging variants and is intended to simplify procurement, production and logistics while supporting faster rollout of future product launches.
Why this mattersThe project shows how board-grade consolidation and digital printing can cut complexity costs for industrial customers, a template converters can pitch to other multi-SKU manufacturers.
- Mondi reduced the number of corrugated board grades used across Stiebel Eltron's packaging by more than 75%.
- Stiebel Eltron had 150 packaging variants in use before the redesign.
- The redesign converts four-colour printed designs to white digital printing on brown corrugated board.
- Mondi grouped existing packaging by product weight and transport requirements to identify optimal board grades per group.
- Digital printing allows multiple designs and print volumes on the same material base without additional set-up.
Malaysian packaging group Scientex is acquiring Mondi Ipoh Sdn Bhd, a consumer packaging films maker, from Germany's Mondi Consumer Packaging International for RM58 million cash. The deal, signed via Scientex's wholly-owned unit Scientex Packaging Film, will lift Scientex's consumer packaging capacity by 30% to 76,800 tonnes a year and is estimated to complete by 11 August.
Why this mattersThe purchase lifts Scientex's consumer packaging capacity 30% to 76,800 tonnes a year and removes Mondi from film converting in Malaysia.
- Scientex Packaging Film Sdn Bhd signed a share purchase agreement to acquire 100% of Mondi Ipoh Sdn Bhd (MISB) for RM58 million cash
- MISB is owned by Mondi Consumer Packaging International GmbH of Germany
- MISB operates two manufacturing plants in Perak, Malaysia with capacity of 16,800 tonnes per year
- The acquisition raises Scientex's consumer packaging capacity by 30%, from 60,000 to 76,800 tonnes per year
- Approximately 70% of MISB's revenue comes from exports to Asia-Pacific
- The deal is funded from internal funds and is estimated to complete by 11 August
South Africa's trade minister Parks Tau has ordered the International Trade Administration Commission (Itac) to review tariff protection for the domestic pulp and paper sector against rising import penetration. The review follows separate requests from Sappi and Mondi for tariffs on newsprint and office paper imports, and comes after Mpact issued retrenchment notices in its carton board business. Itac will assess import injury, exchange rate movements and the effect of US trade policy before recommending measures.
Why this mattersTariff protection would reshape competitive conditions for South African paper producers against cheap imports and a stronger rand.
- Trade minister Parks Tau ordered Itac to review the paper and paper products tariff structure on 18 September 2026.
- Sappi asked earlier in 2026 for a 5% tariff on newsprint imports, warning the local print industry risks extinction without it.
- Mondi has sought trade protection against cheap office paper imports, including for its Rotatrim brand.
- Itac will also investigate an import surveillance system; representations are due by 15 October 2026.
- A government notice states more than USD 2.03bn (ZAR 33bn) has been invested in the sector over the past seven years.
- Mpact issued retrenchment notices in its carton board business earlier in 2026, citing cheap imports and a stronger rand.
Mondi has worked with automotive e-commerce platform Ovoko to design corrugated packaging for shipping car bumpers, an irregularly shaped, high-damage-risk product category. The companies report the design cuts unit packaging costs by up to 42% while improving protection, adapting an existing solution from Mondi's automotive packaging range. The first order using the new packaging was completed within two weeks of implementation.
Why this mattersA stated 42% cut in unit packaging cost shows corrugated displacing ad-hoc protective solutions in oversized, irregular e-commerce categories.
- Mondi and Ovoko developed corrugated packaging for shipping car bumpers sold via e-commerce
- The companies report a unit packaging cost reduction of up to 42%
- Mondi adapted an existing solution from its automotive packaging portfolio to the geometry of bumpers
- The first order using the new packaging was completed within two weeks of implementation
- Ovoko is an automotive e-commerce platform
Mondi has developed a flexible laundry detergent powder bag with Dreco containing 50% post-consumer recycled content, against the 35% minimum the PPWR will require for this plastic packaging category from 1 January 2030. The re/loop PillowBag, which retains the moisture-barrier performance needed for hygroscopic products, has been introduced in German retail chains. The companies announced the project in May 2026.
Why this mattersThe launch shows a flexible-packaging converter can already exceed 2030 PPWR recycled-content thresholds for moisture-sensitive FMCG applications without sacrificing barrier performance.
- Mondi developed the re/loop PillowBag flexible packaging with Dreco, containing 50% post-consumer recycled material.
- The packaging is designed for moisture-sensitive laundry detergent powder and has launched in retail chains in Germany.
- PPWR requires this plastic packaging category to contain at least 35% post-consumer recycled content from 1 January 2030; the 50% level exceeds that threshold.
- Mondi used the mass balance method under ISCC Plus certification for traceability of recycled material.
- The packaging is designed for recycling, verified against Mondi's Path to Circularity scorecard and CEFLEX D4ACE guidelines.
- The project was led on Mondi's side by its Békéscsaba, Hungary plant.
