Mondi has acquired the paper bag converting lines from Holcim group's subsidiary Lafarge Cement in Egypt. The company's subsidiary Mondi Paper Bags signed a long-term supply agreement making Mondi a key supplier of paper bags for Lafarge Cement Egypt.
Mondi Paper Bags, part of the international paper and packaging manufacturer Mondi Group, announced the acquisition of paper bag converting lines from National Bag and Egypt Sack, two subsidiaries of Lafarge Cement Egypt.
Mondi Paper Bags already operates two plants in Egypt. The company's business in Egypt consists of Suez Bag and Mondi Cairo. The acquired production lines would increase Mondi’s capacity by around 150-180 million bags annually and strengthen its position in the Egyptian paper bag market, the company explained.
The acquisition of additional paper sack production capacity is also said to make Mondi a key paper bag supplier for Lafarge Cement Egypt and the two companies signed a long-term supply agreement. "Thanks to Mondi’s vertical integration, Lafarge will further benefit from our high quality kraft paper,” said Claudio Fedalto, Chief Operating Officer of Mondi Paper Bags.