UNITED KINGDOM (From news reports) -- Mondi Plc, a British packaging and paper company, Tuesday said it has agreed to acquire the Duino mill near Trieste in Italy from the Burgo Group for a total consideration of 40 million euros.

The acquisition is subject to competition clearance and other closing conditions. The deal is expected to complete in the second half of the year.

The mill currently operates one paper machine producing lightweight coated mechanical paper. Following the acquisition, this paper machine will be converted to produce around 420,000 tonnes per annum of high-quality recycled containerboard for an estimated investment of around 200 million euros.

Duino is close to two important export harbours, and is ideally located to supply the company's Corrugated Solutions plants in Central Europe and Turkey as well as to serve the growing local Italian market.

The containerboard machine is expected to strengthen backward integration in Corrugated Packaging.