Mondi remains profoundly concerned about the war in Ukraine and is shocked by the humanitarian impact. Since the announcement on 10 March, having assessed all options for the Group’s interests in Russia and recognising its corporate values and stakeholder responsibilities, the Board has decided to divest the Group’s Russian assets. Sources: Timberbiz, Lesprom
The divestment process for these significant assets is operationally and structurally complex and is being undertaken in an evolving political and regulatory environment.
Accordingly, there can be no certainty when a transaction will be completed or as to the structure of any possible transaction.
As of 31 December 2021, the net asset value of the Russian operations was €687 million. The Russian businesses have, to date, managed supply chain constraints. However, the situation remains fluid, with interruptions to pulp and paper production possible going forward.
All significant capital expenditure projects in Russia have been suspended.
The company’s main asset in Russia is Mondi Syktyvkar pulp and paper mill in the Komi Republic.
In the Top-50 ranking of the Russian “Lesnaya Industriya Journal”, Mondi Syktyvkar ranked third in terms of revenue among all forest based industry companies.
In 2021, Mondi Syktyvkar produced 893.8 thousand tons of pulp, 485.0 thousand tons of paper, 328.7 thousand tons of containerboard and 144.9 thousand tons of newsprint.
Over the past 15 years, the Mondi Group estimates that its investments in Russia amounted to Euro 1.6 billion. As a result of the investments, the volume of production of finished products increased by 46% compared with the level of 2008.
In early 2022 Mondi announced its plan to invest Euro 300 million more in Russia in the next three years.
Mondi Syktyvkar is a fully integrated mill from timber harvesting to shipment of finished products to the buyer. The mill operates three thin uncoated paper machines, one containerboard machine and a pulp dryer. The company also has a sawmill, a pulp mill, a power plant and a wastewater treatment plant.
Mondi is a multinational packaging and paper group employing around 26,000 people with around 100 production sites across more than 30 countries, predominantly in Europe, Russia, North America and South Africa. Mondi Syktyvkar employs about 4,500 people.
