Components for personal and home care products such as wipes, diapers and incontinence products are not part of Mondi's strategic focus on packaging business.
Mondi will part with its PCC (Personal Care Components) business. The group entered into an agreement to sell the business to Japanese functional materials manufacturer Nitto Denko Corporation for a cash consideration of approximately €615m.
"Mondi's strategic focus to grow in packaging and the limited overlap of PCC with the rest of its business, has led Mondi to conclude that the next phase of PCC's development will be better undertaken outside of the Group," Mondi explained.
PCC is part of the group's Engineered Materials business unit, together with Functional Papers and Films. Upon completion of the transaction with Nitto, Mondi will merge the Functional Papers and Films business into the Flexible Packaging business unit. "This will strengthen integration along the kraft paper value chain and foster innovation to continue developing functional papers with the necessary barriers to meet increasing customer demand for sustainable packaging," Mondi announced.
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