Johannesburg, South Africa, 19 December 2008 -- Mondi today signed an agreement to divest its Swiss subsidiary, Mondi Niedergösgen, to the Model Group on 01 January 2009.

Mondi’s operation produced approximately 160,000 tons of recycled containerboard during 2008. As part of the agreement, all 90 employees from Mondi Niedergösgen will be transferred to the new owner.

The sale is in line with Mondi’s key strategy to concentrate on low-cost, integrated paper mills.

The Model Group is a Swiss-based, family-owned company manufacturing containerboard, corrugated packaging, and folding boxes.

Mondi is an international paper and packaging group and in 2007 had revenues of EUR 6.3 billion. Its key operations and interests are in Europe, Russia, and South Africa. The Group is principally involved in the manufacture of packaging paper and converted packaging products; uncoated fine paper; and speciality products and processes, including coating, release liner, and consumer flexibles.

Mondi is fully integrated across the paper and packaging process, from the growing of wood and manufacture of pulp (including recycled materials) and paper to the converting of packaging papers into corrugated packaging and industrial bags. Mondi has production operations across around 35 countries and had an average of 35,000 employees in 2007.