Mondi Group’s Mondi Paper Bags business unit has purchased paper bag converting lines from National Bag and Egypt Sack, two subsidiaries of Lafarge Cement Egypt.
The addition of the production lines will increase Mondi’s annual capacity by around 150-180 million bags.
Mondi Paper Bags chief operating officer Claudio Fedalto said: “Lafarge Cement Egypt is part of leading global building material company Holcim Group, which has been a key global customer of Mondi Paper Bags for years.
“We are excited to have signed a long-term supply agreement with Lafarge Cement Egypt and to service them locally in Egypt.
“The collaboration will offer Lafarge access to our latest innovations, industry expertise, strong plant network and customer service.
“Thanks to Mondi’s vertical integration, Lafarge will further benefit from our high-quality Kraft paper.”
The acquisition is intended to strengthen Mondi Paper Bags’ position in Egypt’s paper bag market.
The company already operates two plants in the country.
In addition, Mondi Paper Bags will become a key supplier of paper bags to Lafarge Cement Egypt.
Lafarge Cement Egypt CEO Solomon Baumgartner Aviles said: “We are pleased to now expand Holcim’s and Mondi’s global and long-standing cooperation also to Egypt and are looking forward to jointly serving the building industry in the region.”
Part of Mondi’s Flexible Packaging business unit, Mondi Paper Bags produces industrial paper bags, with a production capacity of around six billion bags.
The company serves the cement and building materials, chemicals, food, feed and seed, and e-commerce industries among others.
Last month, Mondi announced a €280m ($307.5m) investment to boost its corrugated packaging production across four countries.
Of the total investment, €185m will be put towards the company’s central and eastern European corrugated plant network.
The remaining €95m has been allocated for Mondi’s containerboard mill in Świecie, Poland.