Mondi has confirmed it is expanding its paper bags business in Southeast Asia through a joint venture with PT Indocement Tunggal Prakarsa Tbk (Indocement), one of the largest cement producers in Indonesia.
The joint venture, PT Mondi Indo Prakarsa Kemasan, will be located at Indocement’s CementFactory Complex in Citeureup, West Java, Indonesia and will initially produce paper bags for Indocement, serving the growing local market demand for paper bags in Southeast Asia. Mondi will own a 60% stake, with Indocement owning the remaining 40%. Indocement will act as the anchor customer of the joint venture, providing long-term volume stability.
“This joint venture is an excellent strategic fit for our paper bags business,” said Claudio Fedalto, Chief Operating Officer Paper Bags at Mondi. “It allows us to establish a strong local platform in a structurally growing market, underpinned by a reliable long-term customer. At the same time, it provides a clear pathway for scalable growth while applying Mondi’s high standards in operational excellence, safety and quality.”
