Powerflute operates an integrated pulp and paper mill in Kuopio with an annual production capacity of 285,000 tonnes of high-performance semi-chemical fluting.

The fluting is primarily used for packaging fresh fruit and vegetables but other end-uses include electronics, chemicals and pharmaceuticals. Around half of the company’s production is sold in Europe while the remainder is exported globally.

For the year ended 31 December 2017, Powerflute is expected to have turned over around €183m. The business will be integrated into Mondi’s Packaging Paper Business Unit.

The transaction, which remains subject to competition clearance and customary closing conditions, is expected to be completed in the first half of 2018.

Mondi Group chief executive Peter Oswald said: “The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets. We are excited by this opportunity to expand our customer offering by further broadening our containerboard product range and geographic reach.”

Mondi employs around 25,000 people across more than 30 countries. Its main operations are located in central Europe, Russia, North America and South Africa. In 2016 the group’s turnover was €6.7bn.

Following completion of the disposal of Powerflute, NPAC Holdings will continue to own the Corenso group of companies.

Corenso is an international manufacturer of high-performance coreboard and cores, with coreboard mills in North America and Europe, a network of core converting facilities in North America, Europe and China, and more than 800 employees worldwide.