Mondi stated that this will be the first industrial bags plant to be based in Iraq and will serve the growing cement industry which is rebuilding the country. Together with local partner, Kaso Group, this Greenfield project is set to strengthen Mondi's industrial bags business in the expanding Middle East and North Africa region.
The plant is specialised in valve bags for the cement and building materials industries.
"Having Mondi's industrial bags plant close to our cement factories strengthens our long term business relationship and is important for good logistics and supply management," said Rozhgar Barzan, Procurement-Sourcing Manager, United Cement Company – Lafarge Iraq.
The firm also published its interim management statement recently. ?The company said it grew operational profit by 35%, from €120m to €162m from 1 January to 31 March 2013, over the comparable period in 2012.
In its interim management statement, Mondi said: ?"The significant increase over the comparable prior year period is a result of improved market conditions in the Packaging Paper and South African businesses, as well as the benefits from the acquisitions of Nordenia and the corrugated packaging plants in Germany and the Czech Republic completed towards the end of 2012."
Mondi said performance of its industrial bags, which are used for bulk powdered products such as flour and milk powder, was in line with the first quarter of last year. It had been hit by volume declines in Europe, but offset by good demand in non-European markets. However, volumes were expected to improve going into the seasonally stronger European summer months, it said.
Elsewhere, consumer packaging delivered stable returns during the quarter, it said. The division had seen an increase in sales volumes, although much of that had been driven by an increase in diaper components.