Mondi: Long-standing partnership enabled pioneering lightweight cement bags for the Pakistan market

12 December 2017

Mondi Sack Kraft Paper and CheratPackaging Limited give a positive summary after more than 15 years of cooperation.

Vienna, 12 December 2017 - Cherat Packaging Limited, the largest producer and supplier of packaging to the cement industry in Pakistan with a capacity of 600 million bags annually, has made over half a billion cement bags with Mondi's Advantage Select sack kraft paper in more than 15 years of partnership. Working together exclusively with Mondi, Cherat Packaging switched production from three-ply to mainly two-ply bags, which has reshaped the market and allowed considerable material and cost savings without compromising strength or quality. The company has country-specific exclusive rights to use Mondi's brown sack kraft paper to produce high quality cement bags and has bought only Mondi paper for it's use since 2002.

In industrial applications especially, the use of paper bags in primary packaging is gaining traction, thanks to their flexibility and high performance credentials. Having partnered with Mondi since 2002, Cherat Packaging Limited was looking for paper alternatives to satisfy its customers' growing demand for strong, high quality cement bags.

Amer Faruque CEO of Cherat Packaging Limited, explains: 'The bags had to be suitable for rough handling and fast, dust-free filling, and we wanted to deliver further benefits, such as material and cost savings. Mondi's Advantage Select paper was the perfect choice. The 80/85 gsm variant has revolutionised paper bag sales in Asia as it has provided us as well as our customers with high quality, low cost solutions. It has allowed us to use two plies instead of three and to dispense with perforation, which has significantly reduced paper consumption and dust at our clients' premises. The bags are lighter, yet stronger than the previous three-ply versions.'

Over the past years, Cherat Packaging Limited successfully launched its two-ply bags, which are now used by almost all cement plants in Pakistan and are highly appreciated by its customers. The company's paper division has exclusive rights from Mondi for procurement of sack kraft paper in Pakistan and supplies two-ply 80/75 gram 50 kg bag to Cherat Cement, an affiliated enterprise within its group.

Mondi`s sack kraft paper supports new universal paper sack line for packaging

The next big step in the companies business development was taken in October 2017 when Cherat commisioned it's brand new Windmuller & Holscher universal paper sack line. Once more the packaging company has put its trust on Mondi sack kraft paper experience and high-quality paper grades to enter a brand new market with the Universal packaging line.' Amer Faruque CEO of Cherat Packaging commented that there is a potential for smaller 5/25 kgs bags in the Pakistan market and for us of course there is only Mondi as the sole choice for sourcing of quality paper.

Sharing technical service and bag know-how

Mondi Sack Kraft Paper not only contributed significantly to this success with its Advantage Select paper, the company's technical experts also supported Cherat Packaging's team with finding the right set-up and performance parameters for its converting machines over the years. In addition, Mondi evaluates the bags on an ongoing basis at its Bag Application Centre. Conny Josefsson, sales director Sack Kraft Paper, Mondi Group, comments: 'Our Bag Application Centre conducts full-scale tests of bag filling and handling, and evaluates the performance of the paper as well as the finished bags under the predicted environmental conditions. By testing before we deliver, we help our customers create the best possible solutions to meet their needs. Working in close cooperation with Cherat Packaging, our application engineering team regularly tests the performance of the bags to ensure that they fulfil every requirement - from dust-free filling to increased efficiency.'

The technical sales service team`s know-how his higly valued by Cherat Packaging and therefore regularly invited to share knowledge and expertise at special events and seminars of the packaging group. 'We highly appreciate Mondi`s technical sales service approach which is based on the credo to share knowledge with customers and to grow trusted, long-term partnerships. Combined with high-quality sack kraft paper Mondi makes the perfect match for our products and business development', explains Amer Faruque CEO of Cherat Packaging Limited at Cherat Packaging Limited.

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Contact:

Elisabeth Dock, Communications Manager Packaging Paper

Tel: +43 (0) 664 8446520

Email: elisabeth.dock@mondigroup.com

About Mondi Sack Kraft Paper

Mondi Sack Kraft Paper is a business segment of the business unit Packaging Paper and ranks among the leading European suppliers of both high-quality sack kraft papers and bleached and unbleached market pulp. It maintains five production sites that are focused on producing sack kraft paper with excellent runnability and printability ensuring optimised converting machine productivity.

Customer focused. Every day.

With over 100 years of experience and a broad product portfolio consisting of top quality paper grades Mondi can serve its customers best. Mondi's sack kraft paper is the main component of industrial bags used to pack a variety of products essential for e.g. the building, food, agricultural or chemical industry.

In addition, the sack kraft paper production benefits from a deep know-how enhanced through in-house expertise. Mondi's Sack Kraft Paper supports close collaboration with customers in order to drive product optimisation, every day.

Innovative. Every day.

Mondi Sack Kraft Paper fosters innovative research and cutting-edge technology. Its commitment is reflected in the work of its R&D and Bag Application Centres, the Print Competence Centre, where packaging and printing solutions are developed and tested in close cooperation with customers. In addition, the team of specialists at our Food Safety Laboratory develop optimised solutions that meet highest requirements for food contact and other sensitive applications.

About Mondi

We are Mondi: IN TOUCH EVERY DAY

Mondi is a global packaging and paper Group, employing around 25,000 people across more than 30 countries. Our key operations are located in central Europe, Russia, North America and South Africa. In 2016, Mondi had revenues of €6.7 billion and a return on capital employed of 20.3%.

We are fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions. With over 100 products customised into more than 100,000 solutions, we offer more than you may expect. Leading brands around the world rely on our innovative technologies and products across a variety of industries such as agriculture; automotive; building and construction; chemicals and dangerous goods; food and beverages; graphic and photographic; home and personal care; medical and pharmaceutical; office and professional printing; packaging and paper converting; pet care; retail and e-commerce; and shipping and transport.

We believe sustainable development makes good business sense. It's integral to our responsible and profitable growth, and embedded in everything we do, every day. We continue to look for ways to do more with less, promote the responsible management of ecosystems, develop and inspire our people, and enhance the value that our sustainable product solutions create.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. We have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially Responsible Investment (SRI) Index since 2007.