Packaging manufacturer Mondi to sell business in Russia for 1.6 billion rubles

The manufacturer of packaging products Mondi decided to sell its business in Russia to the local company Gotek for 1.6 billion rubles, the agreement was concluded, reported in the press office of the company.

Mondi plc confirms that it has entered into an agreement to sell three Russian packaging recycling facilities to Gotek Group for RUB 1.6 billion.

It is clarified that the business in Russia includes a corrugated cardboard plant and two plants for the production of consumer flexible materials for the domestic Russian market.

According to Mondi, the company’s losses as a result of leaving the market will amount to 70-80 million euros at the current rate. The transaction is expected to be closed in the first half of 2023. However, the exact date was not announced due to the necessary approvals. The deal must be approved by the Russian government’s subcommittee on foreign investment control and the Federal Antimonopoly Service (FAS).

The press service emphasized that this deal had nothing to do with the sale of the Mondi plant in Syktyvkar. About this transaction in the company reported 12th of August. It was specified that the investment company Augment Investments Limited of the Pharmstandard shareholder Viktor Kharitonin would become the buyer of the division, the transaction value would be 95 billion rubles. The transaction is expected to close in the second half of 2022.

On his desire to sell the Russian business to Mondi reported May 4th. The company noted that Mondi’s Russian facilities have coped with supply chain constraints, but the situation is still unstable, so there may be interruptions in the production of paper and pulp in the future.

According to information on the Mondi website, the group owns four plants in Russia – in Syktyvkar, Pereslavl-Zalessky, Sverdlovsk and Lipetsk regions. The last three will be handed over to Gotek, the company’s press service said. There are also several product dealers in Russia.

Corrugated packaging manufacturer Gotek is one of the largest representatives of the industry in Russia. The company’s website states that it has five factories in the Tula, Kursk and Leningrad regions. The staff consists of 2200 people. It is expected that the volume of revenue by the end of 2022 will exceed 20 billion rubles, follows from the information on the website.