Multinational paper and packaging company Mondi has completed its previously announced acquisition of the Duino papermill in Italy.

The company acquired the mill from graphic and speciality paper producer Burgo Group for a total consideration of €40m ($43.3m).

The closure comes after Mondi announced an agreement for the deal in August last year.

Located near Trieste, the Duino mill operates one paper machine that produces lightweight coated mechanical paper.

Following the acquisition, Mondi plans to invest around €200m to convert this machine into a containerboard machine to produce quality recycled containerboard.

The converted facility will be capable of producing around 420,000t of recycled containerboard a year.

Mondi expects the investment to bolster its backward integration in corrugated packaging and help better serve its customers.

The mill’s proximity to two important export harbours will enable the company to supply its corrugated packaging plants in Central Europe and Turkey.

It will also help Mondi meet growing demand for corrugated packaging from the local Italian market.

At the time of announcing the deal, Mondi CEO Andrew King said: “We are excited by this opportunity to invest in the growth of our packaging business, build on our integrated platform and broaden our geographic reach.”

Mondi supplies packaging and paper products to companies worldwide, reporting revenues of €7.0bn in 2021. It has 21,000 employees in total.

In October last year, the company approved a €400m investment to develop a paper machine at its flagship mill in Štětí, Czech Republic.

The paper machine will have an annual production capacity of 210,000t of sack kraft paper, which will support Mondi‘s Paper Bags business.

The investment is part of the company’s expansionary capital investment programme, under which it plans to invest €1bn to expedite its growth in sustainable packaging and improve its market position.