Mondi is strengthening its presence in Southeast Asia by forming a strategic joint venture with PT Indocement Tunggal Prakarsa, one of Indonesia’s leading cement manufacturers.
The move marks a significant step in Mondi’s efforts to expand its paper bags business in a region experiencing steady industrial and infrastructure growth.
The newly established venture, PT Mondi Indo Prakarsa Kemasan, will operate from Indocement’s Cement Factory Complex in West Java. The facility will focus on the production of high-quality industrial paper bags, primarily to support Indocement’s packaging needs, while also positioning itself to serve broader market demand over time.
This collaboration allows Mondi to build a strong local manufacturing base in Indonesia, reducing reliance on imports and improving supply chain efficiency. By producing closer to the end customer, the company can ensure faster delivery times, enhanced service flexibility, and a lower environmental footprint through reduced transportation.
Claudio Fedalto, Chief Operating Officer for Paper Bags at Mondi, emphasized the strategic importance of the partnership, noting that it aligns closely with the company’s long-term growth ambitions. He highlighted that the joint venture not only secures a stable, long-term customer relationship but also creates opportunities for scalable expansion in a rapidly developing market.
Beyond meeting immediate demand, the facility is expected to incorporate Mondi’s global expertise in paper bag manufacturing, including advanced production technologies and strict quality standards. The company also plans to implement its established practices in safety, operational efficiency, and sustainability, ensuring the plant operates in line with international benchmarks.
Indonesia’s growing construction and infrastructure sectors are driving increased demand for cement and related packaging solutions, making it an attractive market for industrial packaging investments. Through this joint venture, Mondi is positioning itself to capitalize on these trends while reinforcing its footprint in Southeast Asia’s evolving packaging landscape.
Overall, the partnership reflects Mondi’s broader strategy of expanding in high-growth regions, leveraging local collaborations to deliver tailored, efficient, and sustainable packaging solutions.
