UK-based packaging company Mondi has announced it will invest €125m to expand the capacity of its semi-chemical fluting mill in Kuopio, Finland.

The investment will expand the mill’s production capacity by around 55,000t a year to meet increasing customer demand.

It will also enhance product quality and cost-competitiveness and improve the facility’s environmental footprint.

Mondi will upgrade the wood yard, fibre line, evaporation plant and paper machine at the facility.

The upgraded facility is expected to begin operations in the fourth quarter of 2023.

Mondi Group CEO Andrew King said: “We are pleased to continue building our portfolio of sustainable packaging to meet our customers’ needs, using the opportunities offered by our integrated, cost-advantaged asset base.”

Mondi’s semi-chemical fluting mill manufactures ProVantage Powerflute, a high performance and durable containerboard grade that serves as a main component for fresh fruit and vegetable trays, boxes and other specialised applications.

ProVantage Powerflute has superior strength, resistance to moisture and durability and helps lower food waste and plastic usage. It aims to meet increasing demand for paper-based fresh food packaging solutions.

The moisture-resistant products can be used for manufacturing fresh fruit and vegetable trays, boxes and specialised applications.

According to Mondi, almost a third of the food produced in the world every year is lost or wasted.

Earlier this month, the UK-based company purchased a 90.38% ownership interest in Turkish corrugated packaging company Olmuksan.

Olmuksan is listed on Turkey’s stock exchange entity, Borsa İstanbul, and has five corrugated packaging plants.

With an annual converting capacity of 300,000t, the company’s sustainable packaging products are used in various sectors, including food, beverage, agriculture and industrial markets.

Mondi said that the deal had closed following the fulfilment of all conditions.