Mondi plans to continue its European expansion after submitting a 186m (e298m) offer for French forest products group La Rochette. We have been looking to increase our market share in France for some time and this provides a perfect fit, said Mondi Europe chief executive David Hathorn.

The firm has three core areas of European business: uncoated woodfree paper, industrial sacks and corrugated packaging. Last year the groups UK operation, Mondi Packaging UK, bought the packaging and paper assets of Danisco Pack UK, including two waste-based paper mills, for 64m (PrintWeek, 21 September 2001).

Mondi has a 2% corrugated packaging market shareholding in France which will rise to 9% if the La Rochette deal is successful and a 15-16% stake in the UK. The deal comprises a paper mill, four box plants and six sheet plants. A decision on whether the deal has been approved by the French Stock Exchange authorities is expected by the end of February.

If successful, Mondis offer for the Paris-based company would not only increase its market presence in France, but would make it Europes fifth largest producer of corrugated packaging. Mondis European packaging operations had a turnover of 500m in 2000, compared to La Rochettes sales of 219m.

Story by Andy Scott