Mondi Group has agreed to acquire the Simet corrugated plant located in Grabonóg, near Poznań in Poland.
The plant is designed to produce a wide range of flexo printed packaging including American cases, die-cut and multipoint folder-glued boxes. Terms of the deal were undisclosed.
The transaction is subject to approval of Polish competition and clearance of other customary conditions.
Upon completion of the deal, Mondi, which will have six box plants in Poland, expects to upgrade the Simet plant to a high efficiency box plant.
Mondi said that the deal is expected to improve customer offer in Poland while strengthening its market position.
Mondi Corrugated Packaging COO Armand Schoonbrood said: "The plant fits well with our strategy of investing in competitive operations with potential for future growth."
Mondi will also transfer its expertise in the production of corrugated board and specialty packaging to the Grabonóg plant as part of integration into its Corrugated Packaging business, which is a part of the Fibre Packaging business unit.
At present, Mondi′s Corrugated Packaging business segment operates 14 box plants in Central and Europe, offering full range of corrugated packaging solutions, from standard transport packaging to specialities and dangerous goods packaging.
Mondi Corrugated Packaging Poland regional manager Grzegorz Kulesza said: "We are pleased with this excellent opportunity to acquire a production site in the Poznan region to complement the rest of our Polish operations."
In 2015, Mondi Group agreed to acquire 95% of the outstanding share capital in flexible packaging company KSP, for an undisclosed amount.
In addition to offering product fit with Mondi's stand-up pouch operations in Korneuburg, Austria and Jackson, US, the deal is a part of Mondi's effort to develop in high value-added, high-growth markets in Consumer Packaging business.