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Management Side
Mondi Celebrates Start-up of New Recovery Boiler
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Johannesburg, South Africa 12 November 2014 -- Construction on the recovery boiler began in 2013 as part of a EUR 128 million investment to increase green electricity production and improve the mill's overall cost position, while reducing the mill's environmental footprint.

Yesterday international packaging and paper group Mondi held a ceremony to celebrate the start-up of a new recovery boiler at Mondi SCP, the company's operation in Ružomberok, Slovakia. The opening ceremony took place on-site at Mondi SCP, where Slovak Prime Minister Robert Fico joined fellow members of government, the project's main suppliers, and representatives from owners Mondi Group and ECO-INVEST-- the Slovak industrial and investment holding.

The new recovery boiler (RB3) has replaced recovery boiler 1, marking a further step in the mill's development to ensure the successful continuation of the mill's 134 year old tradition of paper making in the region. According to Mondi Group CEO David Hathorn, the start-up of the new recovery boiler will enable more eco-efficient means of increasing the production of pulp at the mill. "Wherever economically and environmentally feasible, Mondi promotes resource efficiency by using innovative technologies and making continuous improvements. In line with this approach, we have committed over €430 million to green energy related projects between 2011 and 2016. RB3 is one of these projects and for us investing in green energy makes good business sense," said Mr. Hathorn.

A key part of Mondi SCP's energy efficiency and environmental protection programme, the recovery boiler 3 is part of a broader investment that includes a new turbine, an extended and modernised evaporation plant, and a new lime kiln. Together, these enhancements will also enable the mill to be 100% energy self-sufficient, with 94% of its energy coming from renewable resources.

"Over the past 10 years, the shareholders have invested more than €350 million in Mondi SCP to drive innovative production and operational improvements at the mill. With the new recovery boiler, we are able to produce more pulp with greater efficiency. The new equipment will also lead to a better cost position for our products produced in Ružomberok, making Mondi SCP more competitive in the long term," explained Peter Orisich, CEO Mondi Uncoated Fine Paper.

"We want to thank the Slovak government for creating an attractive investment environment for international corporations and Slovak investment holdings. This investment brings returns for all involved," says Miloslav Čurilla, Chairman of the Board of Directors of Mondi SCP.

The project involved 3300 workers, with up to 500 people on site during the peak construction season this spring. 69% of all workers involved in the project were Slovakian nationals.

"The new recovery boiler is a positive step for our continuing presence in the region," commented Mondi SCP's Managing Director, Roman Senecky. "Mondi SCP has earned a reputation for sustainable paper production and we are proud to build on that with this investment. In the last year we have worked closely together with the government, our suppliers and partners to bring this project to fruition. We now have the technology to match our expertise - these are important keys to our future."

The trial operation for the new recovery boiler began on 2 October when the new equipment was successfully tested. The start-up phase has taken place on time and in budget.

Mondi SCP is the largest integrated pulp and paper mill in Slovakia, with a production capacity of 560,000 tonnes of uncoated fine paper, 66,000 tonnes of packaging paper and 100,000 tonnes of market pulp annually. Mondi SCP is the recipient of PPI awards for its Supply Chain (2013), Managing Risk and Safety (2012), Efficiency Improvements of the Year (2012), and Environmental Strategy of the Year (2010). The mill produces well-known brands such as MAESTRO® PRINT, DNS® performance and several IQ and MAESTRO office papers.

About Mondi

Mondi is an international packaging and paper Group, employing around 26,000 people in production facilities across 31 countries. In 2013, Mondi had revenues of €6.5 billion and a ROCE of 15.3%. The Group's key operations are located in central Europe, Russia, the Americas and South Africa.

The Mondi Group is fully integrated across the packaging and paper value chain - from the management of its own forests and the production of pulp and paper (packaging paper and uncoated fine paper), to the conversion of packaging paper into corrugated packaging, industrial bags, extrusion coatings and release liner. Mondi is also a supplier of innovative consumer packaging solutions, advanced films and hygiene products components.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group's performance, and the responsible approach it takes to good business practice, has been recognised by its inclusion in the FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially Responsible Investment (SRI) Index since 2007.

About ECO-INVEST

ECO-INVEST is a Slovak industrial and investment holding, covering long=term investments across Europe. Its main areas of investments are pulp and paper production, energy, meat processing, real estate and telecommunications. Since its beginnings, the holding is present in various charity projects in the area of health, education, culture and sport.



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