"This is a big step forward for the group, which trebled its turnover in the last six years to around 3.6bn ($7bn)," said chief executive David Hathorn, whose firm is based in 46 countries.
He said the set up would have a new logo, improve geographic coverage and reduce overheads and costs.
Mondi Business Paper includes Neusiedler and Mondi South Africa. CEO Gnther Hassler oversees production plants in Austria, Hungary, Israel, Russia, Slovakia and South Africa.
Mondi Packaging is a merger of Frantschach and the existing Mondi Packaging. It has 106 plants in Europe, 18 in the Americas and works in corrugated, bags, flexibles, coating and packaging paper. Chief executive is Peter Oswald.
Veit Sorger, existing chief executive of Frantschach, is stepping down but stays on the board.
Story by Jez Abbott
Mondi restructures and rebrands
Mondi has cleaved itself in two to streamline and rebrand the business and improve its visibility to customers, it says.
