Mondi Packaging Paper Swecie announced this morning that it had received board approval for the release of 305 million euro to invest in the PM7 machine, which will a capacity for 470,000 tonnes of board per year.
The firm said last autumn that it had signed a delivery contract with Metso for the machine and was deciding between locations in Poland and the Czech Republic.
The money will also be used to build a new corrugated box plant in Swecie with a capacity of up to 250 million sqm per year, which Mondi said would consume "significant volumes" of recycled testliner and fluting.
The approval of the board is the last stage of the acceptance process for the new investment.
Mondi is a global paper and packaging group founded in South Africa in 1967. Its key operations and interests are in Western Europe, Emerging Europe and South Africa. It is principally involved in the manufacture of packaging paper, converted packaging products (including corrugated packaging, industrial bags and speciality packaging products) and uncoated fine paper.
Mondi is integrated across the paper and packaging production process from the growing of wood for pulp production and the manufacture of pulp and paper, to the conversion of packaging papers into corrugated packaging and industrial bags. It also has a growing speciality packaging business focused on the production of release liner, extrusion coating and consumer flexibles products.
Mondi has production operations in 113 locations across 35 countries and approximately 33,000 employees. In 2006 it had revenues of ?5.751billion.